Journal Entries Examples with PDF

Why not try one of our accounting quizzes and test your knowledge of bookkeeping and accounting. Here is a list of full accounting questions and answers that can be found on this site, along with a brief description of each one. income summary Please note that these are generally intermediate to advanced exercises. First, we will debit the expense (to increase an expense, you debit it); and then, credit Cash to record the decrease in cash as a result of the payment.

Debits and Credits Outline

When taking accounting practice tests or quizzes initially focus on answering the questions to the best of your ability. Don’t worry about getting the right answer, focus on understanding how to solve the question. Just like your homework problems, it’s important to understand the “why” behind the answer, even if you answer the question correctly. When following double-entry bookkeeping there needs to be at least 1 debit & 1 credit. The below image is transaction analysis accounting helpful to understand the format of a journal entry.

Examples of Journal Entries with a PDF

Exercise G Using your answer for the previous exercise, prepare a trial balance. Assume the date of the trial balance is March 31. Jan 18 Performed services for customers and received cash immediately for $8,000. C. The company can not owe someone and be owed as a result of the same transaction.

• Step 1 – At the time of charging interest on drawings from the proprietor.
• A credit of $ 4,800 to Accounts Receivable in the journal was not posted to the ledger account at all.
• The services are to be performed next month.
• OK, so we’re dealing with an expense, which is interest.

Bookkeeping Basics Quizzes

You choose the pink beetle with yellow polka dots https://www.bookstime.com/ and a big flower in the middle. You purchase the car on credit, meaning you will pay for it in full next month. Paying expenses requires money to be taken from the BANK.

• C. The company can not owe someone and be owed as a result of the same transaction.
• You visit Johns Car Shop to buy a delivery car.
• Jan 1  Issued $100,000 in stock to owners in exchange for cash to start the business.
• Notice how both the debit side and the credit side are in balance with each other, as they both add up to $24,000.
• Example – Goods worth 100 purchased on credit from HM Ltd. returned by us.
• A company had the following transactions during the first month of operations.

Determine the balance in the cash account at the end of the first month. Record journal entries for following transactions. After recording the transactions,prepare a “T account” and balance the cash account. These quizzes are a great way to practice accounting. Answering these questions efficiently will prepare you for your tests and quizzes. Click the orange text below the quiz to view the answers.

Journal Entry for Bad Debts

Received a $100 utility bill for this month.j. This will result in a compound journal entry. The current year net income might be in the temporary revenue and expense accounts and the current year draws might be in the drawing account.

CREDIT SIDE

The balance of $ 12,000 in the Advertising Expense account was entered as $ 1,200 in the trial balance. 13 Cash collections from customers on account, $ 36,000. 23 A note was arranged with the bank for $ 80,000.

Accounts payable would now have a credit balance of $1,000 ($1,500 initial credit in transaction #5 less $500 debit in the above transaction). He is the sole author of all the materials on AccountingCoach.com. Jan 12 Purchased insurance for January on the delivery trucks.