Accounting Journal Entries Flowchart

Common Stock Owners investment

Journal Entries

Dividends Payouts to Owners

Increase (Debit) Cash & Increase (Credit) Common Stock

Increase (Debit) Dividends & Decrease (Credit) Cash Revenues are matched to the expenses, which are used to produce the Revenues.

Revenue Producing Transactions

Expense Incurring Transactions

Prepaid Revenues

Earned Revenues

Prepaid Expenses

Incurred Expenses

Paid for before sales or service

Paid for at time of sales or services

Paid for at later Date after service or sales is completed

Acquire Operating Materials Increase (Debit) Asset & Decrease (Credit ) Cash or Increase (Credit) Accounts Payable

Capital Acquisition Transactions Increase (Debit) Asset & Decrease (Credit) Cash or Increase (Credit ) Accounts Payable Long-Lived Assets Expensed over their useful life Long-Lived Assets Never expensed Only loss due to disposal expensed or gains become a revenue

Expensing Prepaid Assets Increase (Debit) Expense Decrease (Credit) Asset or Increase (Credit) Contra Asset Account

Paid as incurred Often Monthly Increase (Debit) Expense & Decrease (Credit) Cash or Increase (Credit) Accounts Payable

Increase (Debit) asset & Increase (Credit) Liability

Increase (Debit) Cash & Increases (Credit) Revenue

Increase (Debit) Receivable & Increases (Credit) Revenue

Short-term Assets Expensed as used

Insurance Expense

Cost of Goods Sold

After Completion of Sales or Service Decrease (Debit) Liability & Increase (Credit) Revenue

After Receipt of Payment Increase (Debit) Cash & Decrease (Credit) Accounts Receivable

Supplies

Building Long-term investments

Supplies Expense

Salaries Expense

Prepaid Expenses

Equipment Land

Depreciation Expense

Utilities Expense

Sales Revenues

Service Revenues

Other Revenues Inventory Intangible Assets Travel Expense

May 1, 2013 MJC

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