Date Assets = Liabilities + Equity + Income - Expense

Increase Decrease Increase Decrease Increase Decrease Increase Decrease Increase Decrease
Dr Cr Cr Dr Cr Dr Cr Dr Dr Cr
Jan 2 Cash Lo, Capital
500,000 500,000
5 Cash Taxes and
1,000 Licenses
1,000
6 Prepaid Rent Cash
200,000 200,000
7 Lab Equipment Cash
100,000 100,000
7 Office Cash
Equipment 70,000
70,000
7 Lab Supplies Cash
60,000 60,000
7 Lab Supplies Note Payable
75,000 75,000
8 Petty Cash Cash
Fund 5,000
5,000
9 Prepaid Cash
Insurance 2,000
2,000
11 Accounts Service
Receivable Income
90,000 90,000
12 Cash Service
105,000 Income
105,000
14 Cash Representation
4,600 Expense
700
Transportation
Expense
1,400
Supplies
Expense
500
Employees
Benefits
Expense
600
Journal Entries
Date Account Debit Credit
Jan 2 Cash 500,000
Lo, Capital 500,000
Initial investment of the owner.
Jan 5 Taxes and Licenses 1,000
Cash 1,000
Payment municipal license