How to record personal assets transferred to your small business?
Hi Spineback Accounts:
A personal funding of a business expense results in an 'equity' posting. As such, you should record the asset (trailer) and a balancing entry in owner's equity.
Similarly, the paying of the corporate card with personal money would be:
Debit Liability of Credit Card, Credit Owner's Equity
This represents the fact that the owner/proprietor has funded the business with personal funds, and the business owes them money longer term. When profitability / cash resources allow, the business can then cut a check to the owner to reduce that liability.