Owner Investment of Cash Journal Entry | Principles of Accounting

How do you record an owner investment of cash? In this Principles of Accounting journal entry walkthrough, I use my 6-step No-Guess Journal Entry Framework to work through the transaction from start to finish. You’ll learn: • Why an owner investment is equity (not revenue) • Which accounts are affected • How to determine whether each account increases or decreases • How to determine the debit and credit • How to check your completed journal entry For a basic owner cash investment, Cash increases with a debit and the appropriate owner’s equity account increases with a credit. The specific equity account used can depend on the form of the business. 🪿 FREE JOURNAL ENTRY WORKSHEET + 6-STEP FRAMEWORK: https://accountingrescue.thinkific.co... This is Goose on the Loose Journal Entry #1 — a Principles of Accounting practice series built around a traveling goose petting zoo, because apparently normal accounting examples were not chaotic enough. Need more help with Principles of Accounting? Accounting Rescue provides step-by-step lessons, practice problems, workbooks, and additional help with the accounting cycle. https://accountingrescue.thinkific.com/ I’m Lisa, a CPA and accounting professor. I help Principles of Accounting students understand the WHY behind accounting so they can solve problems without guessing debits and credits.