Regular Journal Entries
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| Regular Journal Entries(My Passion Bookkeeping) |
1. Accrued Expenses
Accrued expenses, also known as accrued liabilities,
are expenses that a company has incurred but not yet paid for. They
represent a company's obligation to make future payments for goods or services
that have already been received. These expenses are recorded on the
balance sheet as current liabilities, even though the actual payment is still
pending.
When owed but not yet paid: Record expenses incurred but unpaid.
Dr: Expense (e.g., Wages Expense)
Cr: Accrued Expense(Outstanding/Payable Expense)
When paid: Settle the liability.
Dr: Accrued Expense(Outstanding/Payable Expense)
Cr: Bank
2. Accrued Revenue
Accrued revenue is revenue that
has been earned by a business, but the payment has not yet been received or
invoiced. It's essentially income that a company is entitled to, but
hasn't yet collected the cash for. This concept is a key part of accrual
accounting, where revenue is recognized when it's earned, not just when cash is
exchanged.
When earned but not yet received:
Recognize revenue earned but not collected.
Dr: Accounts Receivable
Cr: Revenue
When received: Record the collection of receivables.
Dr: Bank
Cr: Accounts Receivable
3. Advance from Customers (Unearned Revenue)
When payment is received in advance: Record customer payments received before earning revenue.Dr: Bank
Cr: Unearned Revenue
When revenue is earned: Adjust for revenue earned.
Dr: Unearned Revenue
Cr: Revenue
4. Amortization of Intangible Assets
Record periodic allocation of intangible asset cost.Dr: Amortization Expense
Cr: Accumulated Amortization
5. Bad Debt Expense
Estimate uncollectable accounts to reflect the expected loss.Dr: Bad Debt Expense
Cr: Allowance for Doubtful Accounts
6. Capital Introduced
Record capital introduced by the owner or investors.Dr: Bank
Cr: Capital
7. Depreciation
Recognize asset wear and tear over time.Dr: Depreciation Expense
Cr: Accumulated Depreciation
8. Dividends Declared
Record the announcement of dividends to shareholders.Dr: Retained Earnings
Cr: Dividends Payable
9. Payment of Dividends
Record payment of declared dividends.Dr: Dividends Payable
Cr: Bank
10. Interest Expense
When interest accrues on a loan: Record unpaid interest expense.Dr: Interest Expense
Cr: Interest Payable
When interest is paid: Clear accrued interest liability.
Dr: Interest Payable
Cr: Bank
11. Inventory Purchase on Credit
Record inventory purchased on credit.Dr: Inventory
Cr: Accounts Payable
12. Inventory Sale
To record sales revenue: Recognize revenue for the sale.Dr: Bank
Cr: Revenue
To record cost of goods sold (COGS): Match the inventory cost to the sale.
Dr: Cost of Goods Sold
Cr: Inventory
13. Loan Interest Paid
Record loan interest payments made.Dr: Interest Expense
Cr: Bank
14. Loan Payment
Record principal repayment on a loan.Dr: Loan Payable
Cr: Bank
15. Payroll Entry
When wages are due: Record employee wages incurred but unpaid.Dr: Payroll Expense
Cr: Wages Payable
When wages are paid: Settle wage liability.
Dr: Wages Payable
Cr: Bank
16. Prepaid Expense
When paid in advance: Record payment for future expenses.Dr: Prepaid Expense
Cr: Bank
When used: Transfer the expense to the income statement.
Dr: Expense
Cr: Prepaid Expense
17. Sales Tax Payable
Record collected sales tax and revenue.Dr: Bank
Cr: Sales Revenue
Cr: Sales Tax Payable
18. Tax Payment
Record payment of taxes to the government.Dr: Income Tax Expense
Cr: Bank
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