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-   -   What is the adjusting entry for this transaction? (https://www.askmehelpdesk.com/showthread.php?t=565623)

  • Mar 27, 2011, 02:46 AM
    cimner
    What is the adjusting entry for this transaction?
    During the year, the owner took home some inventory (textbooks) for personal use (worth $100). The owner recorded a debit to the "owner contributions" account and a credit to "cash at bank".
  • Mar 27, 2011, 09:51 AM
    pready

    The entry I would do now is:
    Debit Cash at bank and Credit Inventory because your transaction does not affect the cash at bank at all, it affects your inventory. My entry will reverse your cash at bank transaction and credit the correct account.

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