Information Needed in Starting Bookkeeping

The purpose of recording business transactions and events is to determine the outcome of the operations of the company for a certain length of time.

The business transactions and events transpired during a certain period may cause increases and decreases in the capital account.

The diverse and various business affairs and activities mostly revolved around the capital account.

Business performance may result to profit which consequently increases capital.

Or, operations may result to losses which subsequently decreases capital.

In order to determine if there are increases or decreases in capital, there's must be a starting point where to compare or there must be a basis of comparison.  Such basis is the initial capital invested by the proprietor at the beginning.

Thus, it is necessary to determine the capital at the time the accounting records started.

There are three instances where a bookkeeper may ascertain or establish the capital at the time of starting a set of bookkeeping and accounting records.

First Instance

The business owner invests a certain amount of cash, such cash is his capital.  Say, if the proprietor puts in P1,000,000.00 cash in his business, the capital of the owner is also the same amount, the P1,000,000.00.  

Second Instance    

The business had already been in operations and may have accumulated various assets in the past. 

For example, the owner has already accumulated the below assets in his business which had already been in operations in the past. 

The capital of the proprietor is the total values of all the assets above, which amounts to P5,080,000.00.

Third Instance

Matrix of Varied Forms of Values, Debit and Credit Rules

Income and its Effect in Capital (Proprietorship)

Most of the time, when income is mentioned in accounting, it refers to the gross revenue the company generates.

Income increases a capital account. But, note that not all increases in capital account is an income account. Initial capital and additional contribution likewise increases the capital or equity.

Income increase a capital when such income is recognized as having been earned. See realization principle.

Though income increases capital account, the capital account should not be directly used or be credited when recording an income.  It is the proper revenue account which must be credited to record an income. So, for every type of revenue, a distinct account title must be assigned.  For examples, see  revenue elements.

Expenses and its Effects in the Capital (Proprietorship)

In carrying and managing the business operations, expenses are necessary in order to make profit.

Remember that net income or loss is a component of capital or equity account.

Implicitly, incurrence of expenses decreases a capital account because in order to compute for the net income or loss, the expenses are deducted from the revenue.  However, such deduction of expenses from revenues is not shown in the capital or equity section of the statement of financial position but is shown in the income statement, hence, the capital account is not used to debit expenses.

So, when expenses are incurred, the capital account is not the direct account to be used or to be debited but the appropriate expense account itself.  Various account title for expenses must be created for different types of expenses. Remember to assign one account title for a group of similar values.  The proper expense account must be debited whenever an expense is recorded.

Examples of different types of expenses are the following:

• Supplies expense
• Utilities expense
• Insurance expense
• Rent expense
• Delivery expense
• Transportation expense
• Advertising expense
• Repairs and Maintenance expense
• Salaries expense
• Wages expense

Expenditure - When an Asset? When an Expense

Expenditure is an act of disbursing cash or incurring an obligation to pay (liability) for a benefit received.

Expenditure is a complete act when there's an immediate disbursement of cash for a benefit received.

In some instances, when a company is short of cash, the expenditure is not immediately accompanied by a cash disbursement, instead, the company promises to pay the cost of benefit in some future time.

Note, that even if there's no immediate cash payment the act is still an expenditure because the benefit is received.  The subsequent payment does not result to another benefit or expenditure, just that the cash disbursement has been deferred or postponed and payment merely complements the act.

The benefit received may be a tangible or intangible form.

The benefits in tangible form are those can be seen which means those with physical or constructive forms. Examples are building, ink, pencil, truck. Notice, these benefits has color, size or form.

While, the benefits in intangible form are those which can not be seen like franchise, trademark, copyright, etc.

To determine when an expenditure is an asset or expense depends as to the length of time or when the benefit received will last.

The expenditure is classified an asset when the benefits received will last for a long period of time.

Conversely, the expenditure is classified as an expense when the benefits received last for a short time period.

Long means lasting for more than a year, in contrast to short time which is less than one year.

JE for Reduction of its responsibility to safeguard the proprietary interest in consideration for money or property parted with

Reduction of its responsibility to safeguard the proprietary interest in consideration for money or property parted with

Illustrative example for money parted with:

On June 27, 20x2, AAA Company gave P3,000.00 to Alec A. Agustin, the proprietor, for his personal use.

How to record the above transaction

Step 1

Remember the guiding principle. 

DEBIT the Value Received

CREDIT the Value Parted With 

Applicable debit and credit rules 

Rule 8
When the value received is the implied reduction of responsibility to safeguard the owner's interest, the capital / proprietorship account is decreased.
Therefore, debit the capital / proprietorship account with the amount of decrease. 

Rule 2
When the value parted with is a thing of value, an asset is decreased.  Therefore, credit the asset account title of that thing of value with the amount of decrease.

Step 2

Analyze the business transaction or economic event

• What is the value received  - reduction of responsibility to safeguard proprietary interest
• What is the value parted with - money
• Assign the account title for the value received - Drawing, A.A. Agustin 
• Assign the account title for the value parted with - Cash
• What is the effect of the value received in the accounting equation - Decrease in Capital
• What is the effect of the value parted with in the accounting equation - Decrease in Asset
• Measure the amount equivalent of the value received - P3,000.00
• Measure the amount equivalent of the value parted with -  P3,000.00

Step 3

Record the journal entry

• Record the date of the transaction

Date of transaction:   June 27, 20x2

• Record the debit with the amount of the value received

Debit the value received :  Drawing, A.A. Agustin   P3,000.00

• Record the credit with the amount of the value parted with

 Credit the value parted with :  Cash   P3,000.00

• Write the explanation of the transaction or events.

Brief Explanation:  To record the proprietor's cash withdrawal of capital

The finished journal entry of the above transaction

=======================


Illustrative example for property parted with:

On June 18, 20x2, Alec A. Agustin, the proprietor of AAA Trucking Services Company, took home a laptop worth P35,000.00 for personal his use.

How to record the above transaction

Step 1

Remember the guiding principle. 

DEBIT the Value Received

CREDIT the Value Parted With 

Applicable debit and credit rules 

Rule 8
When the value received is the implied reduction of responsibility to safeguard the owner's interest, the capital / proprietorship account is decreased.
Therefore, debit the capital / proprietorship account with the amount of decrease. 

Rule 2
When the value parted with is a thing of value, an asset is decreased.  Therefore, credit the asset account title of that thing of value with the amount of decrease. 

Step 2

Analyze the business transaction or economic event

• What is the value received  -  reduction of responsibility to safeguard proprietary interest
• What is the value parted with - property
• Assign the account title for the value received -  Drawing, A.A. Agustin
• Assign the account title for the value parted with - Office Equipment
• What is the effect of the value received in the accounting equation - Decrease in Capital
• What is the effect of the value parted with in the accounting equation - Decrease in Asset
• Measure the amount equivalent of the value received - P35,000.00
• Measure the amount equivalent of the value parted with - P35,000.00

Step 3

Record the journal entry

• Record the date of the transaction

Date of transaction:   June 18, 20x2

• Record the debit with the amount of the value received

Debit the value received :  Drawing, A.A. Agustin  P35,000.00

• Record the credit with the amount of the value parted with

 Credit the value parted with :  Office Equipment  P35,000.00

• Write the explanation of the transaction or events.

Brief Explanation: To record the proprietor's withdrawal of capital

The finished journal entry of the above transaction

JE for Implied promise to safeguard the proprietary interest in consideration for money or property received

Implied promise to safeguard the proprietary interest in consideration for money or property received

Illustrative example for money received:

On June 22, 20x2, AAA Company received cash from Alec A. Agustin, the proprietor, P100,000.00 as additional capital of the business.  

How to record the above transaction

Step 1

Remember the guiding principle. 

DEBIT the Value Received

CREDIT the Value Parted With 

Applicable debit and credit rules 

Rule 1
When the value received is a thing of value, an asset is increased.
Therefore, debit the asset account title of that thing of value with the amount of increase. 

Rule 7
When the value parted with is the implied promise to safeguard the owner's interest, the capital or proprietorship account is increased.
Therefore, debit the capital / proprietorship account with the amount of increase

Step 2

Analyze the business transaction or economic event

• What is the value received  - money
• What is the value parted with - implied promise to safeguard proprietary interest
• Assign the account title for the value received - Cash
• Assign the account title for the value parted with - Capital, A.A. Agustin
• What is the effect of the value received in the accounting equation - Increase in Asset
• What is the effect of the value parted with in the accounting equation - Increase in Capital
• Measure the amount equivalent of the value received - P100,000.00
• Measure the amount equivalent of the value parted with - P100,000.00  

Step 3

Record the journal entry

• Record the date of the transaction

Date of transaction:   June 22, 20x2

• Record the debit with the amount of the value received

Debit the value received :  Cash  P100,000.00 

• Record the credit with the amount of the value parted with

 Credit the value parted with : Capital, A.A. Agustin  P100,000.00 

• Write the explanation of the transaction or events.

Brief Explanation: To record additional cash capital from the proprietor, A.A. Agustin

The finished journal entry of the above transaction

==================

Illustrative example for property received:

On June 13, 20x2, AAA Company received a second hand elf truck worth P400,000.00 from Alec A. Agustin, the proprietor, for use in the business.

How to record the above transaction

Step 1

Remember the guiding principle. 

DEBIT the Value Received

CREDIT the Value Parted With 

Applicable debit and credit rules 

Rule 1
When the value received is a thing of value, an asset is increased.
Therefore, debit the asset account title of that thing of value with the amount of increase. 

Rule 7
When the value parted with is the implied promise to safeguard the owner's interest, the capital or proprietorship account is increased. 

Therefore, debit the capital / proprietorship account with the amount of increase 

Step 2

Analyze the business transaction or economic event

• What is the value received  - property 
• What is the value parted with -  implied promise to safeguard proprietary interest
• Assign the account title for the value received - Delivery Truck
• Assign the account title for the value parted with - Capital, A.A. Agustin
• What is the effect of the value received in the accounting equation - Increase in Asset
• What is the effect of the value parted with in the accounting equation - Increase in Capital
• Measure the amount equivalent of the value received - P400,000.00
• Measure the amount equivalent of the value parted with - P400,000.00

Step 3

Record the journal entry

• Record the date of the transaction

Date of transaction: June 13, 20x2

• Record the debit with the amount of the value received

Debit the value received : Delivery Truck   P400,000.00

• Record the credit with the amount of the value parted with

 Credit the value parted with :  Capital, A.A. Agustin  P400,000.00

• Write the explanation of the transaction or events.

Brief Explanation: To record additional capital from the proprietor, A.A. Agustin in the form of Second Hand Elf Delivery Truck.

The finished journal entry of the above transaction

JE for Cancellation of oral promise to pay is the value parted with in consideration for the money received

Cancellation of oral promise to pay is the value parted with in consideration for the money received

Illustrative example:

On June 19, 20x2, AAA Trucking Services Company received P15,000.00 cash from KES Engineering Services, as full payment of their account with AAA. 

How to record the above transaction

Step 1

Remember the guiding principle. 

DEBIT the Value Received

CREDIT the Value Parted With 

Applicable debit and credit rules 

Rule 1
When the value received is a thing of value, an asset is increased.
Therefore, debit the asset account title of that thing of value with the amount of increase. 

Rule 4
When the value parted with is the cancellation of debtor's promise to pay, an asset is decreased.
Therefore, credit the debtor's account / asset account title with the amount of decrease.

Step 2

Analyze the business transaction or economic event

• What is the value received  - money
• What is the value parted with - cancellation of oral to promise to pay  
• Assign the account title for the value received - Cash  
• Assign the account title for the value parted with - Accounts Receivable
• What is the effect of the value received in the accounting equation - Increase in Asset
• What is the effect of the value parted with in the accounting equation - Decrease in Asset
• Measure the amount equivalent of the value received - P15,000.00
• Measure the amount equivalent of the value parted with -  P15,000.00  

Step 3

Record the journal entry

• Record the date of the transaction

Date of transaction:   June 19, 20x2

• Record the debit with the amount of the value received

Debit the value received :  Cash   P15,000.00

• Record the credit with the amount of the value parted with

 Credit the value parted with :  Accounts Receivable  P15,000.00

• Write the explanation of the transaction or events.

Brief Explanation:  To record payment of receivable from KES. 

The finished journal entry of the above transaction

JE for Cancellation of oral promise to pay is the value received in consideration for the money parted with

Cancellation of oral promise to pay is the value received in consideration for the money parted with

Illustrative example:

On June 29, 20x2, AAA Trucking Services Company paid cash, P15,000.00 to BS Accounting Firm in full payment of AAA account with BS.

How to record the above transaction

Step 1

Remember the guiding principle. 

DEBIT the Value Received

CREDIT the Value Parted With 

Applicable debit and credit rules 

Rule 6
When the value received is the cancellation of oral promise to pay a creditor, a liability is decreased.
Therefore, debit the creditor's account / liability account title with the amount of decrease. 

Rule 2 

When the value parted with is a thing of value, an asset is decreased. 

Therefore, credit the asset account title of that thing of value with the amount of decrease.

Step 2

Analyze the business transaction or economic event

• What is the value received  - cancellation of oral promise to pay
• What is the value parted with - money
• Assign the account title for the value received - Accounts Payable 
• Assign the account title for the value parted with - Cash
• What is the effect of the value received in the accounting equation - Decrease in Liability
• What is the effect of the value parted with in the accounting equation - Decrease in Asset
• Measure the amount equivalent of the value received - P15,000.00
• Measure the amount equivalent of the value parted with -  P15,000.00  

Step 3

Record the journal entry

• Record the date of the transaction

Date of transaction:   June 29, 20x2

• Record the debit with the amount of the value received

Debit the value received :  Accounts Payable  P15,000.00

• Record the credit with the amount of the value parted with

 Credit the value parted with :  Cash   P15,000.00

• Write the explanation of the transaction or events.

Brief Explanation:  To record payment of on-account tax services rendered by BS Accounting Firm.

The finished journal entry of the above transaction

JE for An oral promise (by an individual or entity) to pay is the value parted with in exchange for the hire (or use) of the property

An oral promise (by an individual or entity) to pay is the value parted with in exchange for the hire (or use) of the property of another

Illustrative example:

On June 20 20x2, AAA Trucking Services Company received a bill, P12,000.00, of Tenzai Real Estate & Development Company, owner of the big-sized lot AAA Co. uses to park its delivery trucks, covering the rental for the month, which AAA promises to pay at the end of the month.  

How to record the above transaction

Step 1

Remember the guiding principle. 

DEBIT the Value Received

CREDIT the Value Parted With 

Applicable debit and credit rules 

Rule 10
When the value received is the use, or hire, of others property or services, the capital / proprietorship account is decreased.
Therefore, debit the expense account title with the amount of decrease.
Note that income and expenses are implicit components of an equity account. That the net income or loss forms part of equity and to get the net income or loss, deduct expenses from revenue or income.  

Rule 5
When the value parted with is an oral promise to pay a creditor, a liability is increased.
Therefore, credit the creditor's account / liability account title with the amount of increase.

Step 2

Analyze the business transaction or economic event

• What is the value received  - hire or use of the property
• What is the value parted with - oral promise to pay
• Assign the account title for the value received - Rent Expense
• Assign the account title for the value parted with - Accounts Payable
• What is the effect of the value received in the accounting equation - Decrease in Capital
• What is the effect of the value parted with in the accounting equation - Increase in Liability
• Measure the amount equivalent of the value received - P12,000.00
• Measure the amount equivalent of the value parted with -  P12,000.00

Step 3

Record the journal entry

• Record the date of the transaction

Date of transaction:   June 20, 20x2

• Record the debit with the amount of the value received

Debit the value received :  Rent Expense P12,000.00

• Record the credit with the amount of the value parted with

 Credit the value parted with :  Accounts Payable  P12,000.00

• Write the explanation of the transaction or events.

Brief Explanation:  To record the use of parking space for delivery trucks which the company promises to pay at the end of the month.

The finished journal entry of the above transaction

JE for An oral promise (from an individual or entity) to pay is the value received in exchange for the hire (or use) of the property

An oral promise (from an individual or entity) to pay is the value received in exchange for the hire (or use) of the property

Illustrative example:

On June, 8, 20x2, AAA Trucking Services Company sent a bill, P15,000.00, to KES Engineering Services for the hire of delivery truck which they promised to pay on 20th of the month.

How to record the above transaction

Step 1

Remember the guiding principle. 

DEBIT the Value Received

CREDIT the Value Parted With 

Applicable debit and credit rules 

Rule 3
When the value received is an oral promise to pay from a debtor, an asset is increased.
Therefore, debit the debtor's account / asset account title with the amount of increase. 

Rule 9
When the value parted with is the use, or hire, of (our) property or services, the capital / proprietorship account is increased.
Therefore, credit the income account title with the amount of increase.
Note that income and expenses are implicit components of an equity account. That the net income or loss forms part of equity and to get the net income or loss, deduct expenses from revenue or income.

Step 2

Analyze the business transaction or economic event

• What is the value received  - oral promise to pay 
• What is the value parted with - hire or use of property
• Assign the account title for the value received - Accounts Receivable
• Assign the account title for the value parted with - Rental Income
• What is the effect of the value received in the accounting equation - Increase in Asset
• What is the effect of the value parted with in the accounting equation - Increase in Capital
• Measure the amount equivalent of the value received - P15,000.00
• Measure the amount equivalent of the value parted with -  P15,000.00  

Step 3

Record the journal entry

• Record the date of the transaction

Date of transaction:   June 8, 20x2

• Record the debit with the amount of the value received

Debit the value received :  Accounts Receivable  P15,000.00  

• Record the credit with the amount of the value parted with

 Credit the value parted with :  Rental Income  P15,000.00 

• Write the explanation of the transaction or events.

Brief Explanation: To record an oral promise to pay from KES for the use of delivery truck.

The finished journal entry of the above transaction

JE for An oral promise (by an individual or entity) to pay is the value parted with in consideration for the hire of services of another

An oral promise (by an individual or entity) to pay is the value parted with in consideration for the hire of services of another

Illustrative example:

On June 25, 20x2, AAA Trucking Services Company received Bill No. 2222, in the amount of P15,000.00 from BS Accounting Firm, for the tax services rendered which it promised to pay at the end of month.

How to record the above transaction

Step 1

Remember the guiding principle. 

DEBIT the Value Received

CREDIT the Value Parted With 

Applicable debit and credit rules 

Rule 10
When the value received is the use, or hire, of others property or services, the capital / proprietorship account is decreased.
Therefore, debit the expense account title with the amount of decrease.
Note that income and expenses are implicit components of an equity account. That the net income or loss forms part of equity and to get the net income or loss, deduct expenses from revenue or income.  

Rule 5
When the value parted with is an oral promise to pay a creditor, a liability is increased.
Therefore, credit the creditor's account / liability account title with the amount of increase.

Step 2

Analyze the business transaction or economic event

• What is the value received  - hire of services of another
• What is the value parted with - oral promise to pay
• Assign the account title for the value received - Professional Services Expense
• Assign the account title for the value parted with - Accounts Payable
• What is the effect of the value received in the accounting equation - Decrease in Capital
• What is the effect of the value parted with in the accounting equation - Increase in Liability
• Measure the amount equivalent of the value received - P15,000.00
• Measure the amount equivalent of the value parted with -  P15,000.00  

Step 3

Record the journal entry

• Record the date of the transaction

Date of transaction:   June 25, 20x2

• Record the debit with the amount of the value received

Debit the value received :
Professional Services Expense  P15,000.00

• Record the credit with the amount of the value parted with

 Credit the value parted with :  Accounts Payable  P15,000.00  

• Write the explanation of the transaction or events.

Brief Explanation: To record on-account tax services rendered by BS Accounting Firm to AAA.

The finished journal entry of the above transaction

JE for An oral promise (from an individual or entity) is received in consideration for the hire of services by the entity

An oral promise (from an individual or entity) is received in consideration for the hire of services by the entity

Illustrative example:

On June 18, 20x2, AAA Trucking Services Company presented Bill No. 8888, P280,000.00 to Angel Martin Cakes and Ice Cream Company, a customer, for the delivery and trucking services rendered by AAA which the customer promised to pay in 15 days. 

How to record the above transaction

Step 1

Remember the guiding principle. 

DEBIT the Value Received

CREDIT the Value Parted With 

Applicable debit and credit rules 

Rule 3
When the value received is an oral promise to pay from a debtor, an asset is increased.
Therefore, debit the debtor's account / asset account title with the amount of increase.  

Rule 9
When the value parted with is the use, or hire, of (our) property or services, the capital / proprietorship account is increased.
Therefore, credit the income account title with the amount of increase.
Note that income and expenses are implicit components of an equity account. That the net income or loss forms part of equity and to get the net income or loss, deduct expenses from revenue or income.

Step 2

Analyze the business transaction or economic event

• What is the value received  - oral promise to pay
• What is the value parted with - hire of services
• Assign the account title for the value received - Accounts Receivable
• Assign the account title for the value parted with - Service Income
• What is the effect of the value received in the accounting equation -  Increase in Asset
• What is the effect of the value parted with in the accounting equation - Increase in Capital
• Measure the amount equivalent of the value received - P280,000.00
• Measure the amount equivalent of the value parted with -  P280,000.00

Step 3

Record the journal entry

• Record the date of the transaction

Date of transaction:   June 18, 20x2

• Record the debit with the amount of the value received

Debit the value received :   Accounts Receivable   P280,000.00

• Record the credit with the amount of the value parted with

 Credit the value parted with :  Service Income   P280,000.00

• Write the explanation of the transaction or events.

Brief Explanation:  To record delivery and trucking services rendered to Angel Martin Cakes and Ice Cream.

The finished journal entry of the above transaction

JE for An oral promise (by an individual or entity) to pay is parted with in consideration for a thing of value received

An oral promise (by an individual or entity) to pay is parted with in consideration for a thing of value received

Illustrative example:

On June 23, 20x2, AAA Company bought a brand new L200 Epson printer, P9,800.00  which the company promised to pay in 10 days. 

How to record the above transaction

Step 1

Remember the guiding principle. 

DEBIT the Value Received

CREDIT the Value Parted With 

Applicable debit and credit rules 

Rule 1
When the value received is a thing of value, an asset is increased.
Therefore, debit the asset account title of that thing of value with the amount of increase. 

Rule 5
When the value parted with is an oral promise to pay a creditor, a liability is increased.
Therefore, credit the creditor's account / liability account title with the amount of increase.

Step 2

Analyze the business transaction or economic event

• What is the value received  - a thing of value
• What is the value parted with - oral promise to pay 
• Assign the account title for the value received - Office Equipment
• Assign the account title for the value parted with - Accounts Payable 
• What is the effect of the value received in the accounting equation - Increase in Asset
• What is the effect of the value parted with in the accounting equation - Increase in Liability  
• Measure the amount equivalent of the value received - P9,800.00
• Measure the amount equivalent of the value parted with -  P9,800.00

Step 3

Record the journal entry

• Record the date of the transaction

Date of transaction:   June 11, 20x2

• Record the debit with the amount of the value received

Debit the value received :  Office Equipment  P9,800.00

• Record the credit with the amount of the value parted with

 Credit the value parted with :   Accounts Payable P9,800.00

• Write the explanation of the transaction or events.

Brief Explanation:  To record acquisition of  L200 Epson printer.

The finished journal entry of the above transaction

JE for An oral promise (from an individual or entity) to pay is received in consideration for a thing of value parted with

An oral promise (from an individual or entity) to pay is received in consideration for a thing of value parted with

Illustrative example:

On June 21, 20x2, AAA Trucking Services Company sold a used 3-in-1 printer, P1,500.00 to Emy Cruz which she promised to pay at the end of the month. 

How to record the above transaction

Step 1

Remember the guiding principle. 

DEBIT the Value Received

CREDIT the Value Parted With 

Applicable debit and credit rules 

Rule 3
When the value received is an oral promise to from a debtor, an asset is increased.
Therefore, debit the debtor's account / asset account title with the amount of increase. 

Rule 2
When the value parted with is a thing of value, an asset is decreased.
Therefore, credit the asset account title of that thing of value with the amount of decrease.

Step 2

Analyze the business transaction or economic event

• What is the value received  - oral promise to pay
• What is the value parted with - a thing of value
• Assign the account title for the value received - Other Receivable 
• Assign the account title for the value parted with - Office Equipment
• What is the effect of the value received in the accounting equation - Increase in Asset
• What is the effect of the value parted with in the accounting equation - Decrease in Asset
• Measure the amount equivalent of the value received - P1,500.00
• Measure the amount equivalent of the value parted with -  P1,500.00  

Step 3

Record the journal entry

• Record the date of the transaction

Date of transaction:   June 21, 20x2

• Record the debit with the amount of the value received

Debit the value received :   Other Receivable  P1,500.00

• Record the credit with the amount of the value parted with

 Credit the value parted with :  Office Equipment  P1,500.00  

• Write the explanation of the transaction or events.

Brief Explanation:  To record the sale of used 3-in-1 printer to Emy Cruz.

The finished journal entry of the above transaction