FABM1 Journal Entries Practice

Refer to the Chart of Accounts for the accounts that you should debit and credit.

Scenario: Owner Cash Investment

Debit​ (a)  

Credit​ (b)  

• Cash
• Owner, Capital
• Equipment
• Sales
• Salaries Expense

Refer to the Chart of Accounts for the accounts that you should debit and credit.

Scenario: Purchase of Supplies (Paid in Cash)

Debit​ (a)  

Credit​ (b)  

• Supplies
• Cash
• Prepaid Expense
• Sales
• Accounts Payable

Refer to the Chart of Accounts for the accounts that you should debit and credit.

Scenario: Purchase of Equipment (Partly Paid in Cash, Balance on Credit)

Debit​ (a)  

Credit​ (b)  

Credit​ ​ (c)  

• Equipment
• Cash
• Notes Payable
• Accounts Receivable
• Accounts Payable
• Prepaid Expense

Refer to the Chart of Accounts for the accounts that you should debit and credit.

Scenario: Service Revenue Earned (Cash Received)

Debit​ (a)  

Credit​ (b)  

• Sales
• Cash
• Accounts Payable
• Accounts Receivable
• Salaries Expense
• Service Revenue

Refer to the Chart of Accounts for the accounts that you should debit and credit.

Scenario: Credit Revenue (Services Rendered on Account)

Debit​ (a)  

Credit​ (b)  

• Rent Income
• Cash
• Accounts Payable
• Accounts Receivable
• Salaries Expense
• Service Revenue

Refer to the Chart of Accounts for the accounts that you should debit and credit.

Scenario: Payment of Rent Expense

Debit​ (a)  

Credit​ (b)  

• Rent Income
• Cash
• Accounts Payable
• Rent Expense
• Accounts Receivable
• Service Revenue

Refer to the Chart of Accounts for the accounts that you should debit and credit.

Scenario: Payment of Utilities

Debit​ (a)  

Credit​ (b)  

• Rent Income
• Cash
• Accounts Payable
• Accounts Receivable
• Service Revenue
• Utilities Expense

Refer to the Chart of Accounts for the accounts that you should debit and credit.

Scenario: Loan Obtained from a Bank

Debit​ (a)  

Credit​ (b)  

• Rent Income
• Cash
• Accounts Payable
• Accounts Receivable
• Service Revenue
• Utilities Expense
• Loan Payable

Refer to the Chart of Accounts for the accounts that you should debit and credit.

Scenario: Owner’s Withdrawal (Drawings)

Debit​ (a)  

Credit​ (b)  

• Rent Income
• Owner, Drawings
• Accounts Payable
• Accounts Receivable
• Service Revenue
• Utilities Expense
• Cash

Refer to the Chart of Accounts for the accounts that you should debit and credit.

Scenario: Payment of Salaries

Debit​ (a)  

Credit​ (b)  

• Rent Income
• Salaries Expense
• Accounts Payable
• Accounts Receivable
• Service Revenue
• Utilities Expense
• Cash