Beginner's JE Flashcards
Record $100 of revenue from the sale of electric vehicles.
Dr. Cash 100 Cr. Revenue 100
SmartWatch Ventures sold a watch on credit for $100 and subsequently collected the cash from the customer.
Dr. Accounts Receivable 100 Cr. Revenue 100
Dr. Cash 100 Cr. Accounts Receivable 100
Dunes Golf foctored $200,000 of accounts receivable for a fee of 5%. The company received $175,000, with the rest of the amount received from factor ot end of year:
Dr. Cash 175,000 Dr. Other Receivables 15,000 Dr. Factoring Fee 10,000 Cr. Accounts Receivable 200,000
Company record a bod debt allowance and then subsequently worst-off the receivable.
Dr. Bad Debt Expense xxx Cr. Allowance for Doubtful Accounts xxx
Dr. Allowance for Doubtful Accounts xxx Cr. Accounts Receivable xxx
A customer pays $10,000 for consulting work that will be performed next month.
Dr. Cash 10,000 Cr. Unearned Revenue 10,000
The customer buys $100 of clothing and then returns the clothing a week later!
Dr. Cash/Accounts Receivable 100 Cr. Sales 100
Dr. Sales Returns 100 Cr. Cash/Accounts Receivable 100
The company declares a $100 dividend that Is payable to shareholders.
Dr. Retained Earnings 100 Cr. Dividends Payable 100
A $100 bonus is granted to the CEO and is payable 3 months from grant dote
Dr. Salary Expense 100 Cr. Accrued Salary 100
Record $100 of payroll that will be paid out next month in the first week!
Dr. Salary Expense 100 Cr. Accrued Salary 100
Record $100 of payroll that will be paid out next month in the first week!
Dr. Salary Expense 100 Cr. Accrued Salary 100
Big Ski Club received on invoice for $5,000 of lift ticket
expenses. However. if they pay within 10 days, they will receive o 5%discount!
Dr. Lift Ticket Expense 4,750
Dr. Purchase Discounts Lost 250
Cr. Accounts Payable 5,000
Record $100 invoice for o lobster lunch with clients!
Dr. Entertainment Expense 100 Cr. Accounts Payable 100
Record $100 of depreciation on a iPhone
Dr. Depreciation Expense 100
Cr. Accumulated Depreciation 100
Transaction flow from this purchases of $100 of row materials all the way to the unit being sold and cost of goods sold are recognized.
Dr. Raw Materials 100 Cr. Accounts Payable/Cash 100
Dr. Work in Progress 100 Cr. Raw Materials 100
Dr. Finished Goods 100 Cr. Work in Progress 100
Dr. Cost of Goods Sold 100 Cr. Finished Goods 100
Transaction flow from this purchases of $100 of raw materials all the way to the unit being sold and cost of goods sold are recognized.
Dr. Raw Materials 100 Cr. Accounts Payable/Cash 100
Dr. Work in Progress 100 Cr. Raw Materials 100
Dr. Finished Goods 100 Cr. Work in Progress 100
Dr. Cost of Goods Sold 100 Cr. Finished Goods 100
After a physical inventory observation (PIO), the company identifies $100 more or $100 less inventory than the system stated.
Dr. Inventory 100 Cr. Inventory Adjustment Gain 100 or
Dr. Inventory Adjustment Loss 100 Cr. Inventory 100
Record $100 worth of damaged inventory that had to be discarded.
Dr. Inventory Write-down 100
Cr. Inventory 100
The company prepays $90 of rent to the landlord for 3 months of rent:
Dr. Prepaid Rent 90 Cr. Cash 90
Record $10K of freight-in
Dr. Freight-in 10,000 Cr. Cash/Accounts Payable 10,000
You purchased a glass of wine that cost $5, but paid $6 because sales tax was $1! No tip was given!
Dr. Meals Expense 5 Dr. Sales Tax Payable 1 Cr. Cash 6
Tahoe Ventures offers a warranty on their products. Based on recent sales, the company expects $1,000,000 of potential warranty claims.
Dr. Warranty Expense 1,000,000
Cr. Warranty Provision 1,000,000
If a company sells an item for $100 that includes a warranty with a value of $20, then the journal entry would be:
Dr. Cash/Accounts Receivable 100
Cr. Sales 80
Cr. Deferred Revenue (Warranty) 20
Company borrows money from a bank, owner, or related party.
Dr. Cash xxx Cr. Loan Payable xxx
Company borrows money from a bank, owner, or related party
Dr. Cash xxx Cr. Loan Payable xxx
