Journal entries: Starting the business

The first entries of a business: the owner’s contributions of cash, equipment or a vehicle, a bank loan and its repayment, and the owner’s withdrawals of cash or goods.

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The entries

1. Owner invests cash to start the business
2. Owner contributes a machine to start the business
3. Owner invests cash and a delivery van
4. Receiving a bank loan
5. Repaying the principal of a bank loan
6. Paying a loan installment: principal plus interest
7. Owner withdraws cash for personal use
8. Owner takes goods from stock for personal use
9. Owner pays a business expense personally
10. Issuing common stock at par for cash

Other topics

• Buying goods and supplies
• Selling goods and services
• Fixed assets
• Expenses and payroll
• Adjusting, closing and correcting
• Cash and bank
• Notes and loans
• Inventory and cost of goods
• Corporations and equity
• Multi-step scenarios