Accounting Journal Entries Flowchart.pdf

Accounting Journal Entries Flowchart Common Stock Owner’s investment

Dividends Payouts to Owners

Journal Entries

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

Revenue Producing Transactions

Prepaid Revenues

Paid for before sales or service

Increase (Debit) asset & Increase (Credit) Liability

Increase (Debit) Dividends & Decrease (Credit) Cash

Increase (Debit) Cash & Increases (Credit) Revenue

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

Paid for at later Date after service or sales is completed

Increase (Debit) Receivable & Increases (Credit) Revenue

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

Incurred Expenses

Prepaid Expenses

Earned Revenues

Paid for at time of sales or services

Expense Incurring Transactions

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

Capital Acquisition Transactions Increase (Debit) Asset & Decrease (Credit) (Credit) Cash or Increase (Credit ) Accounts Payable

Short-term Assets Expensed as used

Long-Lived Assets Expensed over their useful life

Supplies

Building

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

Insurance Expense

Cost of Goods Sold

Supplies Expense

Salaries Expense

Long-terminvestments

Prepaid Expenses

Depreciation Expense

Equipment

Land Sales Revenues

Service Revenues

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

Other Revenues Inventory

Intangible Assets

Travel Expense

Utilities Expense