11 Common Journal Entries in Accounting

Ready to learn journal entries in accounting? Read on.

Here are some of the journal entries in accounting with debits and credits, including the descriptions:

1. Cash Sale of Goods

  • Debit: Cash $1,000
  • Credit: Sales Revenue $1,000

Recognizing a $1,000 increase in cash from the sale of merchandise, with a corresponding recognition of $1,000 in sales revenue.

2. Credit Sale of Goods

  • Debit: Accounts Receivable $2,000
  • Credit: Sales Revenue $2,000

Recording a $2,000 increase in accounts receivable for goods sold on credit, with a simultaneous recognition of $2,000 in sales revenue.

3. Purchase of Inventory on Credit

  • Debit: Inventory $3,500
  • Credit: Accounts Payable $3,500

Reflecting a $3,500 increase in inventory due to a credit purchase, creating a corresponding liability of $3,500 in accounts payable.

4. Cash Purchase of Equipment

  • Debit: Equipment $5,000
  • Credit: Cash $5,000

Recording the acquisition of equipment for $5,000 in cash, increasing the equipment asset while decreasing the cash asset.

5. Depreciation Expense

  • Debit: Depreciation Expense $800
  • Credit: Accumulated Depreciation $800

Recognizing $800 in depreciation expense for the period, accumulating it in the contra-asset account, Accumulated Depreciation.

6. Payment of Salaries

  • Debit: Salaries Expense $2,500
  • Credit: Cash $2,500

Recording the payment of $2,500 in cash for salaries, reducing the cash asset and recognizing the corresponding expense.

7. Receipt of Interest Income

  • Debit: Cash $500
  • Credit: Interest Income $500

Recognizing the receipt of $500 in cash as interest income, increasing the cash asset and recognizing interest income.

8. Write-off of Bad Debt ( Direct Method)

  • Debit: Bad Debt Expense $1,200
  • Credit: Accounts Receivable $1,200

Writing off $1,200 in accounts receivable as a bad debt expense, reducing accounts receivable.

9. Loan Received from Bank

  • Debit: Cash $10,000
  • Credit: Loan Payable $10,000

Recording the receipt of a $10,000 loan in cash, increasing the cash asset, and creating a liability in the form of a loan payable.

10. Dividend Declaration

  • Debit: Retained Earnings $3,000
  • Credit: Dividends Payable $3,000

Declaring a $3,000 dividend, reducing retained earnings, and creating a liability in dividends payable.

11. Income Tax Expense

  • Debit: Income Tax Expense $1,500
  • Credit: Income Tax Payable $1,500

Recognizing $1,500 in income tax expense, creating a corresponding liability in income tax payable.

Jason John Wethe
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