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Basic Everyday Journal Entries(a Sole Proprietorship or a Partnership)

Description
Cash Investment by owner in the company The owners withdrawal of money from the company for personal use. Purchase of a long-lived asset (I.e. Land, Buildings, Equipment, furniture, or fixtures) for cash payment Purchase of a long-lived asset (I.e. Land, Buildings, Equipment, furniture, or fixtures) for cash down payment and paying the balance with credit. Purchase of a long-lived asset (I.e. Land, Buildings, Equipment, furniture, or fixtures) for credit only. The purchase and advance payment of an asset that will be used up within a years period of time when paying cash (I.e. Prepaid Rent, Prepaid Insurance, Prepaid Adverting, and supplies). The purchase and advance payment of an asset that will be used up within a years period of time when paying on credit (I.e. Prepaid Rent, Prepaid Insurance, Prepaid Adverting, and supplies). Payment of an everyday expense (I.e. utilities, rent or salaries) when paying with cash. Payment of an everyday expense (I.e. utilities, rent or salaries) when paying on credit. Borrowing money from a bank for less than one year to provide capital Notes Payable is used for loans of longer than one year. Advance payment from a customer for services or sales to be performed at a future date. Providing the service or sales that the company is in the business to perform for cash.

Journal Entry Account Titles Debit Credit


XXX Owners Name, Capital Owners Name, Withdrawals Cash Equipment Cash Equipment Cash Accounts Payable XXX Equipment Accounts Payable Prepaid Insurance Cash Accounts Payable Prepaid Rent XXX Accounts Payable XXX Rent Expense Cash Salaries Expense Salaries Payable Cash Accounts Payable Cash Unearned Fees Earned Cash Fees Earned XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX

MJC Revised 5/2012

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Basic Everyday Journal Entries(a Sole Proprietorship or a Partnership)

Description
Providing the service or sale that the company is in the business to perform on credit. Payment of cash on Account where the item was record as charged on credit at an earlier date. Received cash from a customer who had been billed at an earlier date. Purchase of Inventory or small items for credit

Journal Entry Account Titles


Accounts Receivable Fees Earned Accounts Payable Cash Cash Accounts Receivable Inventory Accounts Payable XXX XXX XXX XXX XXX XXX

Debit Credit
XXX XXX

MJC Revised 5/2012

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