Mixed practice: service business
Objective: Handle unfamiliar service-business transactions.
Recommended first: Why adjusting entries exist
Real bookkeeping rarely labels transactions for you. For each task: read the source facts, identify the accounts, apply the timing rules, and check the equation.
Real tasks often combine ideas from several modules. A job finished after a deposit involves unearned revenue, receivables, and revenue together. An owner paying a business bill personally touches equity and an expense without any business cash. Read carefully, state the facts, then build the entry.
When a task states a business policy — such as expensing small software subscriptions — apply that policy even if a different treatment would be more common elsewhere. Stating the policy you followed in the entry description makes your reasoning reviewable.
Check your work
- Which modules' rules apply here?
- Did you follow any stated policy?
- Does the entry still balance and use the right accounts?
Owner pays a $120 business ad with a personal card.
| Account | Debit | Credit |
|---|---|---|
| Advertising Expense | $120.00 | |
| Owner Capital | $120.00 |
Common mistakes
✗ Ignoring stated policies.
✓ Policies determine treatment in edge cases.
Guided practice
Use hints freely here.
Item 1 of 1
Job completed after a deposit
Greenway Landscaping received a $350.00 deposit last month for a garden redesign (recorded as Unearned Revenue). On Mar 18, 2026 it completes the job, priced at $1,000.00 in total, and invoices the customer for the balance.
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Independent practice
Try these without hints. Completing the lesson needs at least one independent item solved without revealing the answer.
Item 1 of 6
Owner pays a business bill personally
On Mar 21, 2026, the owner of Silverline Photography pays a $295.00 advertising bill for the business using a personal card. The owner treats it as an additional investment.
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References and provenance
- OpenStax, Principles of Accounting, Volume 1: Financial Accounting (accessed 2026-10-29)
Original lesson written for Bookkeeping Exercises (AI-assisted drafting). Calculations are verified by the platform's automated accounting tests. Not yet reviewed by a credentialed accountant. Updated 2026-10-29.