Once you make the decision what kind of shooting range you want, consider whether you are the kind of person who can operate under strict federal, state and local regulations, including safety, insurance, record keeping and reporting requirements.
(A debit entry in an expense account ultimately causes the credit balance in an owner's equity capital account to decrease.) If the company incurs the $500 repair expense but does not pay cash, the company will need to increase its liabilities. The increase to a liability account is achieved with a $500 credit.
Accounting for Assets. A business makes a debit entry or a credit entry to an account in its accounting journal to change its balance. Debits and credits can either increase or decrease an account, depending on the type of account. A debit entry increases an asset account, while a credit entry decreases an asset account. For example, if you credit the inventory account in your small businessâs records by $5,000, the account would decrease by $5,000.