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Accounting journal entries

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I have added some Journal entries for student to learn it.

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Accounting journal entries

  1. 1. MAIWAND WAZIRI
  2. 2. ACCOUNTING JOURNAL ENTRIES Some Entries Examples:- MAIWAND WAZIRI
  3. 3. * Cash payment transactions 1. Purchase of assets in cash 2. Repayment of liabilities in cash 3. Payment of expenses in cash * Cash receipt transactions 4. Sale of assets in cash 5. Borrowing money 6. Issuance of stock * Cash payment transactions 1. Purchase of assets in cash 1a. Purchased merchandise and paid $2,000 in cash 1b. Purchased equipment and paid $15,000 in cash 2. Repayment of liabilities in cash 2a. Repaid $7,000 of bank loans 2b. Paid $3,000 accounts payable MAIWAND WAZIRI
  4. 4. 3. Payment of expenses in cash 3a. Paid $3,500 rent expense 3b. Paid $6,000 salaries expense * Cash receipt transactions 4. Sale of assets in cash 4a. Sold merchandise and received $6,500 in cash The cost of merchandise sold was 5,100 4b. Sold an equipment and received $8,600 in cash The book value of the equipment was $8,000 5. Borrowing money 5a. Borrowed $9,000 in cash 5b. Issued a promissory note and received $11,000 in cash 6. Issuance of stock 6a. Issued 500 shares of common stock, at $50 per share 6b. Issued 200 shares of preferred stock, at $80 per share MAIWAND WAZIRI
  5. 5. Cash payment transactions 1. Purchase of assets in cash 1a. Purchased merchandise and paid $2,000 in cash debit: increase in assets (merchandise) credit: decrease in assets (cash) 1b. Purchased an equipment and paid $15,000 in cash debit: increase in assets (equipment) credit: decrease in assets (cash) debit credit merchandise 2,000 cash 2,000 debit credit equipment 15,000 cash 15,000 MAIWAND WAZIRI
  6. 6. debit credit borrowings 7,000 cash 7,000 2. Repayment of liabilities in cash 2a. Repaid $7,000 of bank loans debit: decrease in liabilities (borrowings) credit: decrease in assets (cash) 2b. Paid $3,000 accounts payable debit credit accounts payable 3,000 cash 3,000 debit: decrease in liabilities (accounts payable) credit: decrease in assets (cash) MAIWAND WAZIRI
  7. 7. debit credit rent expense 3,500 cash 3,500 debit: increase in expenses (rent expense) credit: decrease in assets (cash) 3. Payment of expenses in cash 3a. Paid $3,500 rent expense debit credit salaries expense 6,000 cash 6,000 3b. Paid $6,000 salaries expense debit: increase in expenses (salaries expense) credit: decrease in assets (cash) MAIWAND WAZIRI
  8. 8. debit credit cash 6,500 sales 6,500 debit: increase in assets (cash) credit: increase in revenue (sales) Cash receipt transactions 4. Sale of assets in cash 4a. Sold merchandise and received $6,500 in cash debit credit cost of goods sold 5,100 merchandise 5,100 The cost of merchandise sold was 5,100 debit: increase in assets (cash) credit: increase in revenue (sales) MAIWAND WAZIRI
  9. 9. 4b. Sold an equipment and received $8,600 in cash The book value of the equipment was $8,000 debit credit cash 8,600 equipment 8,000 gain on sale of equipment 600 debit: increase in assets (cash) credit: increase in revenue (sales) 5. Borrowing money 5a. Borrowed $9,000 in cash debit credit cash 9,000 borrowings 9,000 debit: increase in assets (cash) credit: increase in liabilities (borrowings) MAIWAND WAZIRI
  10. 10. debit credit cash 11,000 notes payable 11,000 5b. Issued a promissory note and received $11,000 in cash debit: increase in assets (cash) credit: increase in liabilities (notes payable) 6. Issuance of stock 6a. Issued 500 shares of common stock, at $50 per share debit credit cash 25,000 Common stock 25,000 debit: increase in assets (cash) credit: increase in equity (common stock) MAIWAND WAZIRI
  11. 11. debit credit cash 16,000 Preferred stock 16,000 debit: increase in assets (cash) credit: increase in equity (preferred stock) 6b. Issued 200 shares of preferred stock, at $80 per share MAIWAND WAZIRI
  12. 12. MAIWAND WAZIRI

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