Accounting, Payroll & Pension Issues/Problem in Owner Equity/Capital Account

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Question
Hey,

This isn't a homework question, rather I set up an accounting log for my own personal finances and everything has added up except my owner equity.

Debits:
Bank, Paypal, Discover, Cash, Merchandise Inventory
Expenses:
Ebay (fee charged for selling), Paypal (fee charged for selling), Personal, Shipping

Credits:
Capital/OE, Sales

I'm not sure if these are proper journal entries, but without them my numbers are wrong.

Starting OE
Cash (debit)
Oe (credit)

Having a cost to an available funds account (Cash/Paypal) would bring down OE ($xx.xx same number in all three places)

Shipping Expense (debit) $xx.xx
*OE (debit) $xx.xx
Paypal (credit) $xx.xx

Merchandise Inventory (debit) $xx.xx
*OE (debit) $xx.xx
Bank (credit) $xx.xx

I just wanted to know if this is an ok way to write these in journal entries?  Or is there a better way? I don't remember Inventory or Expenses affecting OE though.  

I stared the OE account because without those debits to bring OE down my balance sheet wouldn't come out equal on both sides.  I haven't taken financial accounting in three years so I'm almost in a  little bit of a crash course by setting my own finances up.  

Let me know, I appreciate the help,

Thanks

Dustin

Answer
Leave out OE in all the transactions involving operating income and expenses. For example:
Cash  <cash>
Sales <credit>
- or -
Expense <debit>
Cash        <credit>

Non-operating transactions may included entries to Owner's Equity. For example to start the business, the transaction is -
Cash.          <debit>
Owner's Equity.  <credit>

Please review the following:
http://www.dwmbeancounter.com/tutorial/lesson01.html
http://www.accountingcoach.com/bookkeeping-training

Ask follow-up questiuons if this is not clear. You may have to do some reading which is why I included the web sites.

Accounting, Payroll & Pension Issues

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Arthur Naman

Expertise

General accounting and bookkeeping questions. Specific questions pertaining to: monthly bookkeeping, preparing financial reports; reconciling accounts.

I cannot answer questions pertaining to pension or retirement planning.

This is not a forum to have homework answered. Please do your own homework.

Experience

30 years' experience doing tax and accounting work

Education/Credentials
MPA from Univ. of Texas at Austin, MBA Golden Gate Univ, San Francisco CA

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