Owner selling personal property as business inventory

[President E]

I am adding personal property to be sold as inventory for my company. Then it goes into a owners capital(Cr) account. When it sells will it look like income if I take it out of the capital account(Dr)? or can the inventory be debited into an expense or liability account

 

[Allan Madan CPA]

When you add inventory you Dr. Inventory and credit cash. When you sell the inventory, you

Dr. COGS
Dr. Cash
Cr. Inventory
Cr. Sales

Thanks,
Allan Madan CPA, CA

 

[Counterofbeans]

I am adding personal property to be sold as inventory for my company. Then it goes into a owners capital(Cr) account. When it sells will it look like income if I take it out of the capital account(Dr)? or can the inventory be debited into an expense or liability account

So you are contributing personal property to your business & you intend that to be a capital contribution?

At inception, you'd Dr. Inventory and Cr. Additional Paid in Capital (although, this doesn't sound like a C-corp. Is this an S or LLC corp by chance?).

I don't know how your business works, nor the sales terms. At the most rudimentary level, your JEs upon sales would be:

Dr. Accounts Receivable
Cr. Sales

Dr. Cost of Goods Sold
Cr. Inventory

My instincts tell me that your sales terms are more complicated than that though.