Basic Everyday Journal Entries

Basic General Journal Entries Stockholders’ Equity General Journal Entries: Journal Entry

Transaction Description

Account Title

Debit

Selling stock to investors (owners) of the corporation

Cash

Paying owners a cash benefit for investing in the corporation

Dividends Cash

XXX

Providing a service to a customer in return for cash

Cash

XXX

Providing a product to a customer in return for cash

Cash

Providing a service to a customer on credit

Accounts Receivable Service Revenue

XXX

Providing a product to a customer on credit

Accounts Receivable Sales Revenue

XXX

Paying for an monthly expense with cash

Rent Expense Cash

XXX

Credit

XXX Common Stock

XXX

XXX

Service Revenue

XXX XXX

Sales Revenue

XXX

XXX

XXX XXX

Paying for an monthly expense Telephone Expense XXX using credit Accounts Payable XXX Expenses and Revenues can have a number of different account titles. They are temporary record keeping accounts that are emptied out at the end of each fiscal period. Accounts are given specific titles to give the owners more information that is detailed. Information acquired would be things such as where revenues are coming from or what the corporation’s monthly expenses are.

Asset General Journal Entries: Journal Entry

Transaction Description

Account Title

Debit XXX

Purchase of long-term asset

Asset Title Cash

Paying salaries to employees

Salaries and Wage Expense Cash

XXX

Purchase of supplies

Supplies Cash

XXX

Cash

XXX

Received payment from customer who has already been billed

MJC Revised 10-2011

Accounts Receivable

Credit XXX

XXX

XXX

XXX

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Basic General Journal Entries Asset General Journal Entries Continued: Journal Entry Transaction Description

Account Title

Debit

Credit

The acquisition of a asset, which will be use up Prepaid Insurance XXX during future fiscal term(s) Cash XXX Remember that cash and assets decreased with a credit and increased with a debit. Also, remember to replace the “Asset Title” with the name of the asset purchased.

Liability General Journal Entries: Journal Entry Account Title Debit

Transaction Description

Borrowing money from a bank

Cash Notes Payable

XXX

Purchasing Inventory on credit

Inventory Accounts Payable

XXX

Paying monthly expense on credit

Telephone Expense Accounts Payable

XXX

Purchasing long-lived assets using credit

Asset Title Notes Payable

XXX

Purchasing long-lived assets using credit with a down payment of cash

Asset Title Accounts Payable Cash

XXX

Recognition of cash received in advance of either a service preformed or a product’s delivery

Cash

XXX

Paying down on the amount owned by the corporation

Account Payable Cash

XXX

Notes Payable Interest Payable Cash Note: Liabilities are increased with a credit and decreased with a debit.

XXX XXX

Paying off a note which was used to purchase a long-term asset

MJC Revised 10-2011

Credit

XXX

XXX

XXX

XXX

XXX XXX

Unearned Revenue

XXX

XXX

XXX

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