Journal Entries
Journal Entries
Journal Entries
Description
Cash Investment by owner in the company The owners withdrawal of money from the company for personal use. Purchase of a long-lived asset (I.e. Land, Buildings, Equipment, furniture, or fixtures) for cash payment Purchase of a long-lived asset (I.e. Land, Buildings, Equipment, furniture, or fixtures) for cash down payment and paying the balance with credit. Purchase of a long-lived asset (I.e. Land, Buildings, Equipment, furniture, or fixtures) for credit only. The purchase and advance payment of an asset that will be used up within a years period of time when paying cash (I.e. Prepaid Rent, Prepaid Insurance, Prepaid Adverting, and supplies). The purchase and advance payment of an asset that will be used up within a years period of time when paying on credit (I.e. Prepaid Rent, Prepaid Insurance, Prepaid Adverting, and supplies). Payment of an everyday expense (I.e. utilities, rent or salaries) when paying with cash. Payment of an everyday expense (I.e. utilities, rent or salaries) when paying on credit. Borrowing money from a bank for less than one year to provide capital Notes Payable is used for loans of longer than one year. Advance payment from a customer for services or sales to be performed at a future date. Providing the service or sales that the company is in the business to perform for cash.
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Description
Providing the service or sale that the company is in the business to perform on credit. Payment of cash on Account where the item was record as charged on credit at an earlier date. Received cash from a customer who had been billed at an earlier date. Purchase of Inventory or small items for credit
Debit Credit
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