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