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In February 2020, Ola Gott invested an additional $12,000 in her business, Gotts Pharmacy, which is organized as a proprietorship. Gotts accountant, Sal Costa, recorded this receipt as an increase in cash and revenues. Is this treatment appropriate? Why or why not?

Chapter 1, Questions #18

In February 2020, Ola Gott invested an additional $12,000 in her business, Gott’s Pharmacy, which is organized as a proprietorship. Gott’s accountant, Sal Costa, recorded this receipt as an increase in cash and revenues. Is this treatment appropriate? Why or why not?

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No, this treatment is not proper. While the transaction does involv…View the full answer

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Related Book For answer-question
Accounting Principles

Accounting Principles

13th edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

ISBN: 978-1119411482

Answers for Questions in Chapter 1

Brief Exercises:
Continuing Case:
Critical Thinking:
DO IT! Exercises:
Ethics Case:
Exercises:
IFRS Exercise:
Problem Set A:
Questions:

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