[Anonymous]

Hello, I just started my FAR journey and am using Becker.

Where are investment from and distribution to owners recorded? I know it’s not on the income statement, declared dividends are on the statement of retainer earnings, but what would investment from owners?

[Lidis]

Dmitri

Investment from or to owners is recorded on owners' equity.

1) Equity is created by the initial investment of the enterprise owners, consequently, investments by the owners or admision of new owens increase equity, while distributions to owners decrease it.

2) Equity is change as a result of operations of the enterprise and other events and circumstances affecting it.

[Author]

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