The Basic Accounting Journal Entries

In any small business, one of the most important tasks is keeping records. This is especially true in an accounting system. The basic accounting journal entries are the tools you use to create and manage your business accounts. The journal is a very important part of a business’s financial records.

Now, this isn’t an entry level book for studying accounting. This is a book that assumes you know the basics of accounting and want to learn the more advanced concepts. After all, even if you are just starting out, you should already be familiar with the basic figures and concepts that are covered in this book.

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Aug 14, 2020
Bookkeeping by Adam Hill

Each accounting system transactions are entered through journal (day book) entries that show accounting figures, numbers and whether those accounts are recorded in credit or debit side of accountings. Journal entries are used to record business transactions. The following journal entry examples provide an outline of the more common entries encountered. It is impossible to provide a complete set of journal entries that address every variation on every situation, since there are thousands of possible entries.

How to Make a Journal Entry

A journal entry records financial transactions that a business engages in throughout the accounting period. These entries are initially used to create ledgers and trial balances. Eventually, they are used to create a full set of financial statements of the company. Transactions are listed in an accounting journal that shows a company’s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit.

This means a new asset must be added to the accounting equation. The above format shows the journal entry for a single transaction. Additional transactions would be recorded in the same format directly below the first one, resulting in a time-ordered record.

A properly documented journal entry consists of the correct date, amount(s) that will be debited, amount that will be credited, narration of the transaction, and unique reference number (i.e. check number). DateTransactionJanuary 2Rent was paid in advance for a full year totaling $750,000.January 3Equipment costing $830,000 was purchased.{“@context”:”https://schema.org”,”@type”:”FAQPage”,”mainEntity”:[{“@type”:”Question”,”name”:”How do you do a basic journal entry?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:” A journal entry is a record of what you have done that day. It is typically a list of tasks that you have completed, such as: Woke up Drank coffee Took a shower Went to work Listened to music A journal entry is typically written in the present tense. I woke up. I drank coffee. I took a shower. I went to work. I listened to music.”}},{“@type”:”Question”,”name”:”What are the 2 basic accounting entries?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:” 1. Cash 2. Accounts Receivable 1. Accounts Receivable”}},{“@type”:”Question”,”name”:”How do you record basic accounting transactions?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:” The following is a list of the most common records used in basic accounting: Inventory: Debits: Credits: Expense: Revenue: Payroll: Bank Reconciliation: The following is a list of the most common records used in advanced accounting: Inventory: Debits: Credits: Expense: Revenue: Payroll: Bank Reconciliation: How do you record a purchase order? The following is a list of the most common records used in basic accounting: Inventory: Debits: Credits: Expense: Revenue: Payroll: Bank Reconciliation: The following is a list of the most common records used in advanced accounting: Inventory: Debits: Credits: Expense: Revenue: Payroll: Bank Reconciliation: How do you record a purchase order? The following is a list of the most common records used in basic accounting: Inventory: Debits: Credits: Expense: Revenue: Payroll: Bank Reconciliation: The following is a list of the most common records used in advanced accounting: Inventory: Debits: Credits: Exp”}}]}

Frequently Asked Questions

How do you do a basic journal entry?

A journal entry is a record of what you have done that day. It is typically a list of tasks that you have completed, such as: Woke up Drank coffee Took a shower Went to work Listened to music A journal entry is typically written in the present tense. I woke up. I drank coffee. I took a shower. I went to work. I listened to music.

What are the 2 basic accounting entries?

1. Cash 2. Accounts Receivable 1. Accounts Receivable

How do you record basic accounting transactions?

The following is a list of the most common records used in basic accounting: Inventory: Debits: Credits: Expense: Revenue: Payroll: Bank Reconciliation: The following is a list of the most common records used in advanced accounting: Inventory: Debits: Credits: Expense: Revenue: Payroll: Bank Reconciliation: How do you record a purchase order? The following is a list of the most common records used in basic accounting: Inventory: Debits: Credits: Expense: Revenue: Payroll: Bank Reconciliation: The following is a list of the most common records used in advanced accounting: Inventory: Debits: Credits: Expense: Revenue: Payroll: Bank Reconciliation: How do you record a purchase order? The following is a list of the most common records used in basic accounting: Inventory: Debits: Credits: Expense: Revenue: Payroll: Bank Reconciliation: The following is a list of the most common records used in advanced accounting: Inventory: Debits: Credits: Exp