Category Archives: Journal Entry Examples

Owner’s Equity Journal Entry Example 21


Owner’s Equity Transactions

1. On June 1, 20×1, owner invested $800,000 to start a new business.

  Debit Credit
Cash 800,000  
Owner’s Equity   800,000
[Debit] Increase in cash, an asset account.
[Credit] Increase in owner’s equity, an equity account.

 
2. On June 15, 20×1, owner withdrew $150,000 from the investment in the business.

  Debit Credit
Owner’s Equity 150,000  
Cash   150,000
[Debit] Decrease in owner’s equity.
[Credit] Decrease in cash.

 
3. After two previous transactions, what is the remaining balance of the Owner’s Equity account at June 30, 20×1?

June 1: Increase in owner’s equity = 800,000
June 15: Decrease in owner’s equity = 150,000
June 30: Remaining balance of owner’s equity = 800,000 – 150,000 = 650,000

 

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