General Journal Entry for
Beginning Operations

by Paige
(Michigan)

Q: I am trying to do a general journal entry for the following and was having trouble, could you help me with what accounts to debit and credit in this situation.

Dwyer Delivery service began operations by recieving $5,000 cash and a truck valued at $10,000. The business gave owner's equity to aquire these assets.

Thanks!

A: Here is the journal entry:

Dr Bank $5,000
Dr Delivery truck $10,000
Cr Capital $15,000

See the lessons in the sections Basic Accounting Concepts and Basic Accounting Transactions to get a more solid understanding of equity/capital and basic transactions (these lessons give you a solid base of understanding of journal entries).