Category: Journal Entry Examples

A1. (1) Journal entry: An entry into an accounting journal. (2) Accounting journal: An accounting record that keeps accounting transactions as they occur. (3) A

[Q1] Owner invested $700,000 in the business. Prepare a journal entry to record this transaction. [Journal Entry]   Debit Credit Cash 700,000        Owner’s Equity

[Q1] An entity uses a perpetual inventory system. On June 12, the entity purchased $24,000 inventory on account. Prepare a journal entry to record this

[Q1] An entity uses a periodic inventory system. The entity purchased $24,000 inventory on account. Prepare a journal entry to record this transaction. [Journal Entry]

[Q1] The entity collected $800 from the accounts receivable that had been written-off in the past. Prepare a journal entry to record this transaction. [Journal

[Q1] The entity concludes that $1,200 of its accounts receivable cannot be collected in the future, because the customer liquidated the business. Prepare a journal