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    Question

    How to record journal entries for owner contributions of tangible goods?

    What would the journal entries look like for the following transaction: The sole equity holder of XYZ-Co. contributes office supplies worth $100 to XYZ-Co. as a capital contribution. Would you just debit office supplies and credit owner's equity by $100 each? (I know this is probably a stupid question, but I've forgotten most of the accounting I learned in college in the few years since I graduated.) Thanks!
    a few seconds ago 1 Answer

    Best Answer

    Chosen by Asker
    That's pretty much it, yes, except that (I think) you would really want to have an account called 'Capital - (owner's name)'. You would also want to have an account called 'Withdrawals - (owner name)'. That way you are keeping track of both owner contributions and owner withdrawals, instead of just lumping them together in a single catch-all owner equity account. (Provides slightly more detail and slightly more usefulness to the financial statements with very little effort.) So for this transaction, it would be: Debit 'Office Supplies' $100 Credit 'Capital - (owner name)' $100
    3 years ago

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