Journalizing entries

Classification

100

Cash

Asset

200

Capital

Owner's equity

300

Prepaid insurance

Asset

400

Accounts Payable

Liability

The Accounting Equation

100

If I have $15,000 in assets and $7,000 in Liabilities, what is my total Owner's Equity?

$8,000

200

If I have $4,000 of Liabilities and $6,000 of Owner's Equity, what are my total Assets?

$10,000

300

If I have $8,500 in cash and $7,500 in Capital, what are my total Liabilities?

$1,000

400

If I have $1,000 Cash, $500 Prepaid insurance, $1,200 of Supplies, and an Accounts Payable of $700, what is my total Owner's Equity?

$2,000

Transactions

100

Received cash for sales

Debit to Cash 

Credit to Sales

200

Paid cash to the owner for personal use

Debit to Drawing 

Credit to Cash

300

Purchased supplies on account.

Debit to Supplies 

Credit to Accounts Payable

400

Received Cash on Account

Debit to Cash 

Credit to Account Receivable