When an owner invests $1000 in the company, which account do you credit in the journal entry?

When an owner invests $1,000 in the company, the appropriate journal entry reflects an increase in the company's equity. The owner's equity account captures the owner's claims to the resources of the business, which is adjusted when the owner contributes capital. In this case, the investment of $1,000 directly increases the owner's equity, reflecting that the owner has put more resources into the business.

In double-entry bookkeeping, when you credit the owner's equity account, it indicates an increase in the equity of the company. Simultaneously, the cash account must be debited to show that cash has increased due to the owner's investment. Thus, the journal entry would involve debiting the cash account and crediting the owner's equity account, thereby accurately representing the transaction's financial impact on the company's accounts.