A reference table of everyday journal entries. Each example shows the accounts debited and credited and why. Amounts are illustrative.
Find the transaction closest to yours, then check the accounts against the source document. The pattern matters more than the amount.
If a transaction mixes two patterns — for example part cash, part credit — combine the lines into one compound entry and check that debits equal credits.
On Mar 1, 2026, the owner deposits $8,500.00 of personal savings into the Maple Street Tutoring business bank account to start the business.
| Cash | $8,500.00 | |
| Owner Capital | $8,500.00 |
Cash is an asset and increases with a debit. Owner Capital is equity and increases with a credit.
On Mar 2, 2026, FixRight Appliance Repair repairs a washing machine. The customer pays $640.00 by debit card, deposited to the bank the same day.
| Cash | $640.00 | |
| Service Revenue | $640.00 |
Revenue is earned when the service is performed. The cash received is debited to Cash and the earnings are credited to Service Revenue.
On Mar 3, 2026, Harbor Point Consulting completes a strategy workshop and sends invoice #INV-114 for $8,000.00, due in 30 days.
| Accounts Receivable | $8,000.00 | |
| Service Revenue | $8,000.00 |
Under accrual accounting, revenue is recorded when earned. The amount the client owes is an asset, Accounts Receivable.
On Mar 1, 2026, Northlight Design Studio buys a large-format printer for $2,700.00, paid immediately by bank transfer.
| Equipment | $2,700.00 | |
| Cash | $2,700.00 |
Long-lived equipment is recorded as an asset at cost. Paying cash decreases another asset, so Cash is credited.
On Mar 4, 2026, BrightNest Cleaning Co. receives bill #B-388 from a wholesaler for $730.00 of cleaning supplies, payable in 30 days.
| Supplies | $730.00 | |
| Accounts Payable | $730.00 |
Supplies on hand are an asset. Buying on credit creates a liability, Accounts Payable.
On Mar 2, 2026, Peak Form Fitness Studio pays $3,150.00 rent for the current month by check #301.
| Rent Expense | $3,150.00 | |
| Cash | $3,150.00 |
Rent for the current period is an expense. It is not equipment or a prepaid asset because the benefit is used up this month.
On Mar 6, 2026, Corner Bean Café pays its $580.00 electricity bill for the month online.
| Utilities Expense | $580.00 | |
| Cash | $580.00 |
Utilities consumed this period are an expense; paying in cash decreases Cash.
On Mar 7, 2026, a client pays Harbor Point Consulting $2,150.00 by bank transfer for an invoice sent last month.
| Cash | $2,150.00 | |
| Accounts Receivable | $2,150.00 |
Collecting a receivable swaps one asset for another. Crediting Service Revenue again would double-count revenue.
On Mar 8, 2026, BrightNest Cleaning Co. pays $520.00 to settle a supplier bill recorded earlier.
| Accounts Payable | $520.00 | |
| Cash | $520.00 |
Paying a bill reduces the liability and reduces Cash. No expense is recorded at payment because the purchase was already recorded.
On Mar 4, 2026, FixRight Appliance Repair buys diagnostic equipment costing $3,000.00. It pays $700.00 in cash and signs a note payable for the rest.
| Equipment | $3,000.00 | |
| Cash | $700.00 | |
| Notes Payable | $2,300.00 |
A compound entry records one asset funded from two sources. Debits (one line) equal credits (two lines).
On Mar 2, 2026, Greenway Landscaping pays $2,280.00 for a 12-month liability insurance policy starting this month.
| Prepaid Insurance | $2,280.00 | |
| Cash | $2,280.00 |
Payments covering future periods are recorded as prepaid assets and expensed as time passes.
On Mar 14, 2026, BrightNest Cleaning Co. pays its cleaners $1,780.00 for work done this week (ignore payroll taxes in this exercise).
| Wages Expense | $1,780.00 | |
| Cash | $1,780.00 |
Wages for the current period are an expense when the work is done.
On Mar 6, 2026, Maple Street Tutoring buys workbooks and pens for $265.00, paid by debit card. They will be used over the coming weeks.
| Supplies | $265.00 | |
| Cash | $265.00 |
Supplies on hand are an asset until used.
Item 1 of 3
On Mar 1, 2026, the owner deposits $8,000.00 of personal savings into the Maple Street Tutoring business bank account to start the business.
Practice journal entries →Journal entry simulator →
Original content. Figures are fictional; examples are generated and checked by our accounting engine. Updated 2026-10-29.