JournaldrillOwner investment
A journal entry exercise from Journaldrill. Solve it with an account picker and debit and credit fields in your browser, and it is checked the moment you submit.
The task
Maria Rivera opens Rivera Lawn Care, a sole proprietorship, by depositing $15,000 of her personal savings into the business checking account.
What this exercise teaches
Cash increases, so it is debited. In a sole proprietorship the owner's contribution is recorded in Owner's Capital, which increases with a credit. It is not revenue because the business did not earn it by providing services.
A hint if you get stuck
The business gains an asset, and the owner's equity claim on the business grows by the same amount.
Try it now, no account needed
This exercise is free. Open it on the practice page, solve it, and get instant feedback with a hint and a worked solution after two tries.
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