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In accounting, journal entries are the first step in the accounting cycle , recording financial transactions using (left side) and credits (right side). The fundamental rule is that total debits must always equal total credits . Practice Exercises

: The owner invests $50,000 cash into the business.

: Performed services and received $3,000 cash immediately.

Accounting Principles: Journal Entry T Account Practice Problem

: Paid $2,000 toward the equipment purchased in Transaction #2.

: Performed services for $2,500 and billed the customer (on account).

: The business paid $500 in cash dividends to stockholders. Solutions & Explanations

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