![]() It sells a guitar for $500 that cost $100.Įntry #7 - PGS sells another guitar to a customer on account for $300. He agrees to pay $1,000 a month.Įntry #5 - PGS’s first rent payment is due.Įntry #6 - PGS has a grand opening and makes it first sale. He spends all of the money on improving and updating the store’s fixtures and looks.Įntry #4 - PGS purchases $50,000 worth of inventory to sell to customers on account with its vendors. Here are the events that take place.Įntry #1 - Paul forms the corporation by purchasing 10,000 shares of $1 par stock.Įntry #2 - Paul finds a nice retail storefront in the local mall and signs a lease for $500 a month.Įntry #3 - PGS takes out a bank loan to renovate the new store location for $100,000 and agrees to pay $1,000 a month. ![]() We are following Paul around for the first year as he starts his guitar store called Paul’s Guitar Shop, Inc. ![]() There are numerous other journals like the sales journal, purchases journal, and accounts receivable journal. For instance, cash was used to purchase this vehicle, so this transaction would most likely be recorded in the cash disbursements journal. Since there are so many different types of business transactions, accountants usually categorize them and record them in separate journal to help keep track of business events. Here is an example of how the vehicle purchase would be recorded. Each journal entry is also accompanied by the transaction date, title, and description of the event. Traditional journal entry format dictates that debited accounts are listed before credited accounts. Journal entries use debits and credits to record the changes of the accounting equation in the general journal. Total assets increased and decreased by the same amount, but an economic transaction still took place because the cash was essentially transferred into a vehicle.Īfter the business event is identified and analyzed, it can be recorded. Both of these accounts are asset accounts, so the overall accounting equation didn’t change. When the company purchased the vehicle, it spent cash and received a vehicle. This means a new asset must be added to the accounting equation.Īfter an event is identified to have an economic impact on the accounting equation, the business event must be analyzed to see how the transaction changed the accounting equation. In this case, the company purchased a vehicle. Using our vehicle example above, you must identify what transaction took place. Obviously, if you don’t know a transaction occurred, you can’t record one. First, the business transaction has to be identified. There are generally three steps to making a journal entry. Here are the steps to making an accounting journal entry. For example, when the company spends cash to purchase a new vehicle, the cash account is decreased or credited and the vehicle account is increased or debited. As business events occur throughout the accounting period, journal entries are recorded in the general journal to show how the event changed in the accounting equation. People of color in Meriden were also more likely to report mental health issues like depression or anxiety.Journal entries are the first step in the accounting cycle and are used to record all business transactions and events in the accounting system. The census data also shows Black and Latino residents in New Haven county have higher incidences of heart disease, asthma and diabetes. ![]() ![]() Nearly twice as many Black women in Meriden received late or no prenatal care. Latino residents statewide were nearly five times less likely to be insured compared to white residents and half as likely to be insured compared to Blacks. Thirteen percent of Meriden residents had no health insurance according to 2020 census data, with Black and especially Latino residents far more likely to be affected. This reporter works with our news team and in collaboration with our Record-Journal Latino Communities Reporting Lab. Position: The health equity beat highlights and examines disparate access and outcomes in health care with a solutions-oriented approach, reaching underserved audiences, especially communities of color, with critical health news and information, while monitoring the impact of official decision-making and policies. Beat: Health equity-especially in communities of color ![]()
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