Accounting - Journal Entries Overview

Remember A.L.O.R.E. Debits = Credits for every journal entry.

Debit Credit
Asset + -
Liability - +
Owner’s/Stockholder Equity - +
Revenue - +
Expenses + -

Basic Entries
Buying Items (e.g. supplies, land, etc.) Doing Job for Advance Payment
Items Unearned Revenue
Cash Revenue

Buying Items on Account Recording Depreciation

Items Depreciation Expense
Accounts Payable Accumulated Depreciation

Paying off Items bought on Accounts Invoicing Client

Accounts Payable Accounts Receivables
Cash Fees Earned

Using Items (e.g. supplies) Client pay Invoice

Supplies Expense Cash
Supplies Accounts Receivables

Paying Dividends Closing Entries

Dividends Moving Revenue to Income Summary
Cash Revenue (Sales, Rents etc.)
Income Summary
Adjusting Entries
Prepaid Expense (e.g. rent, insurance etc.) Closing Expenses
Prepaid Income Summary
Cash all Expenses

Using Prepaid Moving Income to Retained Earnings

Expense Income Summary
Cash Retained Earnings

Client Pays Fees in Advance Removing Dividends

Cash Retained Earnings
Unearned Revenue Dividends

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