Owens Industries is trying to increase its profile in the community. As part of this effort, Owens sponsors a Little League baseball team. The cost of sponsorship is $850. How should Owens record this transaction in order to maintain a balanced accounting equation (A = L + SE)?

Answer:The Owens Industries should credit $850 to their Assets, denoted by A and debit the sum of $850 to the Stockholder's Equity, denoted by SE.Step-by-step explanation:In the question,As the Owens industries is trying to increase its profile.Cost of sponsorship = $850To maintain the profile he can, by using the transaction accounting balance equation,A = L + SEThe Owens Industries should credit $850 to their Assets, denoted by A and debit the sum of $850 to the Stockholder's Equity, denoted by SE.That is,$850 = L + $850L = 0This is how the accounting equation can be balanced.