JOURNAL ENTRIES

Assume all entries are cash unless told otherwise

I start a new business and I am the only owner Invest $50,000

Buy $10,000 of computer equipment

I buy 1000 cartons of chalk costing a TOTAL $5,000 (figure the COGS you will need it later)

I rent a location for my internet store that sells chalk $1000 for one month

I buy insurance for the year cost $500 ---- I will be billed and pay in 10 days

I sell 50 cartons of chalk for $20 each

I sell 10 cartons of chalk for $25 each I will be paid in 10 days

I order a Chalk-B-US website $200 to be paid next week

I buy 200 cartons of chalk for $1000 (did my COGS change??)

I sell 400 cartons of chalk for $30 each

I go to the bank and borrow $10,000 to be paid back in 90 days

I pay the employee her salary of $400

I pay for the website

I pay for the insurance

I buy 200 cartons of chalk for $5 each --- I will pay for it in 2 months

	Debit	Credit
Cash
Investment
Computer
Cash
Rent expense
Cash
Insurance expense
A/P
cash
chalk
rev
Account receivable A/R
chalk
rev
Website expense
a/P
chalk
cash
cash
chalk
rev
cash
loan
Salary expense
cash
a/p
cash
Insurance a/p
cash
Chalk
a/p