Journal is a physical record or digital document kept as a book, spreadsheet, or data within accounting software. When a business transaction is made, a bookkeeper enters the financial transaction as a journal entry.
Here are a few examples of different types of journals:
1. On January 1, a company receives $50,000 in cash from a bank loan. The journal entry would be:
Debit: Cash $50,000
Credit: Loans Payable $50,000
2. On January 2, the company purchases $5,000 of supplies on credit. The journal entry would be:
Debit: Supplies $5,000
Credit: Accounts Payable $5,000
3. On January 3, the company earns $12,000 in revenue from selling its products. The journal entry would be:
Debit: Sales Revenue $12,000
Credit: Accounts Receivable $12,000
4. On January 4, the company pays $1,500 in wages to its employees. The journal entry would be:
Debit: Wages Expense $1,500
Credit: Cash $1,500
5. On January 5, the company pays $2,000 on its bank loan. The journal entry would be:
Debit: Loans Payable $2,000
Credit: Cash $2,000
Solve the following journals in the comment section:
6. On January 6, the company incurs $500 in utilities expenses.
7. On January 7, the company sells $10,000 of its products on credit.
8. On January 8, the company pays $3,000 to its supplier for inventory.
9. On January 9, the company records $1,000 of depreciation expense on its office equipment.
10. On January 10, the company pays a dividend of $5,000 to its shareholders.
