The controller for Tires and More,Inc.has recorded the following transactions during the month: the owner established the business with a $20,000 investment on the 1st of the month;the company recorded $36,000 of revenue for tires and services provided during the month;and expenses of $22,000 were recorded for the month.What is the balance ofOwner's Equity at the end of the month,and is the balance a debit or a credit?
A)$34,000 debit.
B)$34,000 credit.
C)$20,000 credit.
D)$6,000 debit.

Question

Quizplus · Accepted Answer

Owner's Equity increases with credits and decreases with debits. The owner's initial investment of $20,000 (credit) plus revenue of $36,000 (credit) minus expenses of $22,000 (debit) results in a $34,000 credit balance in Owner's Equity.

The Controller for Tires and More,Inc