journal entries Flashcards
purchase of inventory for cash
Inventory - increase
Cash - decrease
payment of local taxes
Tax Expense - increase
Cash - decrease
purchase of inventory on cash basis
Inventory - increase
Cash - decrease
payment of utilities expense
Utilities Expense - increase
Cash - decrease
purchase of inventory on accounts
Inventory - increase
Accounts Payable - increase
payment of various small expenses that do not warrant separate presentation
Miscellaneous Expense - increase
Cash - decrease
owners’ cash investment to the business
Cash - increase
Owner’s capital - increase
purchase of equipment on cash basis
Equipment - increase
Cash - decrease
sales on goods on cash basis (disregard cost of sales)
Cash - increase
Sale - increase
charging the cost of good sold as expense
Cost of Sale - increase
Inventory - decrease
payment of taxi fares of employees working night shift
Transportation Expense - increase
Cash - decrease
sale of inventory on account (disregard cost of sale)
Accounts Receivable - increase
Sale - increase
Charging of the cost of the inventory sold as expense
Cost of Sale - increase
Inventory - decrease
collection of accounts receivable
Cash - increase
Accounts Receivable - decrease
purchase of inventory on account
Inventory - increase
Accounts Payable - increase
obtaining a loan
Cash - increase
Notes Payable - increase
payment of accounts payable
Accounts Payable - decrease
Cash - decrease
provision of additional capital to the business by the owner
Cash - increase
Owners additional Capital - increase
payment of loan obtained
Notes payable - decrease
Cash - decrease
payment of interest expense
Interest Expense - increase
Cash - decrease
drawings of the owner from the business
Owners Drawings - increase
Cash - decrease
payment on advertising expense
Advertising Expense - increase
Cash - decrease
payment of salaries expense
Salaries Expense - increase
Cash - decrease
