Basic Journal Entries

Make a payment for supplies previously purchased on account.

Debit Accounts Payable Credit Cash

Provide bookkeeping services to client and send a bill.

Debit Accounts Receivable Credit Revenue (or Fees Earned)

Provide landscaping services to client and send a bill.

Debit Accounts Receivable Credit Revenue (or Fees Earned)

Provide photography services to client and send a bill.

Debit Accounts Receivable Credit Revenue (or Fees Earned)

Pay cash for radio advertisement.

Debit Advertising Expense Credit Cash

Receive a payment for revenue previously earned on account.

Debit Cash Credit Accounts Receivable

Owner invests Cash in exchange for common stock.

Debit Cash Credit Common Stock

Provide consulting services to client and collect cash.

Debit Cash Credit Revenue (or Fees Earned)

Pay cash dividends.

Debit Dividends Credit Cash

Purchase equipment on account.

Debit Equipment Credit Accounts Payable

Pay for 6 months rent in advance with cash.

Debit Prepaid Rent Credit Cash

Pay cash for supplies.

Debit Supplies Credit Cash

Purchase supplies on account.

Debit Supplies Credit Accounts Payable

Purchase vehicle by signing a note.

Debit Vehicle Credit Notes Payable

Pay employee wages with cash.

Debit Wages Expense Credit Cash