Journal Entries

Question 1

Issued Shares

Answer 1

DR $

CR Common Shares

Question 2

Sale of Goods

Answer 2

DR $
CR Rev.
DR COGS
CR Inventory

Question 3

Use prepaid insurance

Answer 3

DR Insurance expense

CR PPI

Question 4

Accrual: estimating what an invoice will be prior to completing service (ie. lawyer)

Answer 4

DR Accrued Revenue (this is an asset account)

CR Service Revenue

Question 5

Sale with right of return

Answer 5

DR. A.R.
      CR Refund Liability
      CR Sales Revenue
DR COGS
      CR Inventory

Question 6

$ collected - right of return

Answer 6

DR $

CR A.R.

Question 7

Refund (right of return)

Answer 7

DR Refund Liability (a liability acct.)

CR $

Question 8

Prepayment

Answer 8

DR $

CR Unearned Revenue

Question 9

Service delivered after prepayment

Answer 9

DR Unearned revenue

CR Service Revenue

Question 10

Goods delivered after prepayment

Answer 10

DR Unearned Revenue
CR Sales Revenue
DR COGS
CR Inventory

Question 11

Gift card purchased

Answer 11

DR $

CR Unearned Revenue

Question 12

Gift card redeemed

Answer 12

DR Unearned Revenue
CR Revenue
DR COGS
CR Inventory

Question 13

Accounts Receivable Allowance for Doubtful Accounts(opening it)

Answer 13

DR Bad Debts Expense

CR Allowance for Doubtful Accounts

Question 14

Write-off with allowance

Answer 14

DR A for DA

CR A.R.

Question 15

Direct write-off

Answer 15

DR Bad Debts Expense

CR A.R.

Question 16

Recovery after write-off, with allowance.

Answer 16

DR A.R.
CR A for DA
DR $
CR A.R.

OR

DR $
CR AFDA

Question 17

Credit card sale

Answer 17

DR A.R.-cc
DR cc expense
      CR Revenue
DR COGS
      CR Inventory

Question 18

Credit card company sends $

Answer 18

DR $

CR A.R.-cc

Question 19

2/10 receivable collected

Answer 19

DR $ (Xxx-2%)
DR Sales Discount (exp)(2% of Xxx)
CR A.R. (Xxx)

Question 20

Add stock to inventory

Answer 20

DR Inventory

CR $

Question 21

Write-down with reasonably certain valuation

Answer 21

DR COGS

CR Inventory

Question 22

Write-down with uncertain valuation

Answer 22

DR Inventory Impairment Expense (COGS acct.)

CR Inventory Allowance (contra Inventory acct)

Question 23

Inventory is short

Answer 23

DR COGS

CR Inventory

Question 24

Inventory is over.

Answer 24

DR Inventory

CR COGS

Question 25

Accrual: Recognize a monthly interest payment that will come in.

Answer 25

DR Interest Receivable

CR Interest Revenue

Question 26

Accrual: account for wages payable at the end of a period.

Answer 26

DR Wages Expense

CR Wages Payable

Question 27

Deferral: Use up prepaid tuition revenue.

Answer 27

DR Un.Rev.

CR Tuition Rev.

Question 28

Deferral: use up some PPI.

Answer 28

DR Insurance Expense

CR Prepaid Insurance

Question 29

Apply some depreciation.

Answer 29

DR Depreciation Expense

CR Accumulated Depreciation, (equip/ etc.)(asset contra account)