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



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.

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

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,



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:

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


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.


30 years' experience doing tax and accounting work

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

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