Accounting 101

[Atomic_Sheep]

Hello,

I installed GnuCash and am now wishing I listened more in accounting but
alas. Anyway, my question is to do with owners equity.

I'm starting a small business and don't yet generate any income so the only
thing happening at the moment are expenses. Obviously the money needs to be
coming from somewhere and for this we have owners equity. So far so good in
mind (unless I've already made a mistake in which case please correct!).

The way I see it, to purchase PPE for example, one needs to first contribute
equity:

3/4/2014 Contributed equity/Owners equity        Debit: $x1
3/4/2014     Cash                                           Debit: $x1
Atomic_Sheep has now spent all his holiday money on a risky business
venture!

Once we have made a sound investment, it's time to purchase the required
equipment:
3/4/2014 Property Plant & Equipment        Debit: $x2
3/4/2014     Cash                                                   Credit:
$x2
Business purchased some property!

So far so good or have I made some double entry errors?

Assuming I am correct, I shall proceed on with my final questions:

1.) How do you actually record these transactions in gnucash? Only through
the general ledger?

2.) Is it possible to somehow do this through a transaction of some sort?

3.) Is transferring money the same thing as a general ledger
entry/transaction? i.e. if you right click in the chart of accounts tab, it
allows you to select "Transfer". I tried this and the account certainly
changed, however the general ledger did not populate anything, perhaps there
is a date range I'm not aware of?

4.) In the GnuCash->Preferences window under the tab "Business" and under
the heading 'Register Defaults' we have a check box 'Transactional Journal',
what does this mean? and what do the other two options mean 'Basic ledger'
and 'Auto-split ledger'?

Thanks guys, lots of questions I know, hopefully I haven't been too
confusing!



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