Dynamic Investments
Journal Entry
10/26/2010
* Owners invests $1500 in the company
* Increase in assets (cash) by $1500 DR
* Increase in owners’ equity by $1500 CR
* Journal entry
Debit credit
* cash $1500
* owners’ equity $1500
Cash bal. +$1500……..+ in assets
Owners’ equity bal. +1500……..+ in owner’s equity
* We landed on Team A’s property and had to pay $4 cash for rental fees
* Increase in expense(rental fee) by $4 DR
* Decrease in assets (cash) by $4 CR
* Journal entry
Debit credit
* Rental fee $4
* cash $4
Expense bal. +$4……..+ in expense
Cash bal. -$4 ……..- in assets
* Company purchases property(St. Charles place) for $140 in cash
* Increase in assets (property) by $140 DR
* Decrease in assets (cash) by $140 CR
* Journal entry
Debit credit
* Property $140
* cash $140
Property bal. +$140……..+ in assets
Cash bal. -$140……..- in assets
* Bank gives company $200 in cash for passing GO
* Increase in assets (cash) by $200 DR
* increase in assets (account receivable) by $200 DR
* Journal entry
Debit credit
* cash $200
* account receivable $200
Cash bal. +$200……..+ in assets
Account receivable bal. +$200……..+ in assets
* Company purchases property(short line) for $200 in cash
* Increase in assets (property) by $200 DR
* Decrease in assets (cash) by $200 CR
* Journal entry
Debit credit
* Property $200
* cash $200
Property bal. +$200……..+ in assets
Cash bal. -$200……..- in assets
* Company purchases property(reading railroad) for $200 in cash
* Increase in assets (property) by $200 DR
* Decrease in assets (cash) by $200 CR
* Journal entry
Debit credit
*...