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General Journal Entries Overview

This document provides examples of basic general journal entries for stockholders' equity, assets, liabilities, revenues, and expenses. It includes entries for transactions like selling stock to investors, paying dividends to owners, purchasing assets with cash or credit, paying salaries, receiving payment from customers, and recognizing various types of revenues and expenses. The purpose of general journal entries is to record business transactions and their impact on accounts in order to track financial activities and prepare financial statements for owners.

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2K views2 pages

General Journal Entries Overview

This document provides examples of basic general journal entries for stockholders' equity, assets, liabilities, revenues, and expenses. It includes entries for transactions like selling stock to investors, paying dividends to owners, purchasing assets with cash or credit, paying salaries, receiving payment from customers, and recognizing various types of revenues and expenses. The purpose of general journal entries is to record business transactions and their impact on accounts in order to track financial activities and prepare financial statements for owners.

Uploaded by

sivasivasap
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
  • Stockholders' Equity General Journal Entries
  • Liability General Journal Entries
  • Asset General Journal Entries Continued

Basic General Journal Entries

Stockholders Equity General Journal Entries:


Journal Entry
Transaction Description
Account Title Debit Credit
Selling stock to investors Cash XXX
(owners) of the corporation Common Stock XXX

Paying owners a cash benefit Dividends XXX


for investing in the corporation Cash XXX

Providing a service to a Cash XXX


customer in return for cash Service Revenue XXX

Providing a product to a Cash XXX


customer in return for cash Sales Revenue XXX

Providing a service to a Accounts Receivable XXX


customer on credit Service Revenue XXX

Providing a product to a Accounts Receivable XXX


customer on credit Sales Revenue XXX

Paying for an monthly expense Rent Expense XXX


with cash Cash 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:


Journal Entry
Transaction Description
Account Title Debit Credit
Asset Title XXX
Purchase of long-term asset
Cash XXX

Salaries and Wage Expense XXX


Paying salaries to employees
Cash XXX

Supplies XXX
Purchase of supplies
Cash XXX

Received payment from customer Cash XXX


who has already been billed Accounts Receivable XXX

MJC Revised 10-2011 Page 1


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
Transaction Description
Account Title Debit Credit
Cash XXX
Borrowing money from a bank
Notes Payable XXX

Inventory XXX
Purchasing Inventory on credit
Accounts Payable XXX

Telephone Expense XXX


Paying monthly expense on credit
Accounts Payable XXX

Asset Title XXX


Purchasing long-lived assets using credit
Notes Payable XXX

Asset Title XXX


Purchasing long-lived assets using credit with a
Accounts Payable XXX
down payment of cash
Cash XXX

Recognition of cash received in advance of either Cash XXX


a service preformed or a products delivery Unearned Revenue XXX

Paying down on the amount owned by the Account Payable XXX


corporation Cash XXX

Notes Payable XXX


Paying off a note which was used to purchase a
Interest Payable XXX
long-term asset
Cash XXX
Note: Liabilities are increased with a credit and decreased with a debit.

MJC Revised 10-2011 Page 2

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