Basic General Journal Entries

Stockholders Equity General Journal Entries:

Transaction Description Journal Entry Account Title Debit Credit

Selling stock to investors (owners) of the corporation Paying owners a cash benefit for investing in the corporation Providing a service to a customer in return for cash Providing a product to a customer in return for cash Providing a service to a customer on credit Providing a product to a customer on credit
Paying for an monthly expense with cash

Cash Common Stock Dividends Cash Cash Service Revenue Cash Sales Revenue Accounts Receivable Service Revenue Accounts Receivable Sales Revenue
Rent Expense Cash

XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 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 corporations monthly expenses are.

Asset General Journal Entries:

Transaction Description Purchase of long-term asset Asset Title Cash Salaries and Wage Expense Cash Supplies Cash Cash Accounts Receivable Journal Entry Account Title Debit XXX Credit XXX XXX XXX XXX XXX XXX XXX

Paying salaries to employees

Purchase of supplies Received payment from customer who has already been billed

MJC Revised 10-2011

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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:

Transaction Description Journal Entry Account Title Debit Credit

Borrowing money from a bank

Cash Notes Payable Inventory Accounts Payable Telephone Expense Accounts Payable Asset Title Notes Payable Asset Title Accounts Payable Cash Cash Unearned Revenue Account Payable Cash

XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX

Purchasing Inventory on credit

Paying monthly expense on credit

Purchasing long-lived assets using credit

Purchasing long-lived assets using credit with a down payment of cash Recognition of cash received in advance of either a service preformed or a products delivery Paying down on the amount owned by the corporation Paying off a note which was used to purchase a long-term asset

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

MJC Revised 10-2011

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