VESPER

Accounting Foundations

Journal Entries and T-Accounts

Northstar Services · Jan 2 · Scenario 1

The owner invests $5,000 cash for common stock.

Record the journal entry, then post it.

Source document

Stock subscription receipt #001 — $5,000

T-accounts

Cash

Normal balance: debit

Debit

—

Credit

—

No entry yet

Balance 0

Common Stock

Normal balance: credit

Debit

—

Credit

—

No entry yet

Balance 0

Service Revenue

Normal balance: credit

Debit

—

Credit

—

No entry yet

Balance 0

Journal entry

Total debits—
Ledger idle
Total credits—

Posting is blocked until total debits equal total credits.