To practice creating entries in the general ledger, let’s build the first month of operation for a fictitious company called Lisa’s Candle Shop. In this section, you’ll develop a series of entries and then learn how to post these entries to the general ledger.
To make things easier, start the company on January 1 as a new business and use the chart of accounts that you created in Chapters 2 and 3. Suppose that you, as the owner, started the business with $15,000 that you had saved. You also needed to borrow an additional $5,000 from Citizens Bank to get the business started.
Next you need to buy some things for the business. You buy a used desk and chair for $500, store fixtures for $1,200, candles to sell for $8,000, and ...