A friend of the owners contributes $40000 to become a part owner.  Select the flows and accounts that the business would use to record this transaction.

Question

A friend of the owners contributes $40000 to become a part owner.  Select the flows and accounts that the business would use to record this transaction.
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Solution 1

This transaction would be recorded as follows:

  1. Cash Flow: The business would record an inflow of cash as the friend has contributed $40000 to the business. This would be recorded under the financing activities in the cash flow statement as it involves owners' equity.

  2. Equity: The equity of th Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

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