small business accounting

Challenges are what make life interesting and overcoming them is what makes life meaningful." - Joshua Marine

creating journal entries

When a company records a business transaction, it is not entered into an accounting equation, per se. Rather, transactions are recorded into specific accounts contained in the company's general ledger.

​For example, let's assume your planning to start your own business and plan to invest personal funds into the start up of the business of $15,000.  The general ledger entry would be recorded by the Accountant as shown below.

The recording of this journal entry also means a balance sheet can be created to reflect the financial position of the company.