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The Corporate Finance Institute Accounting
Journal Entry Examples
The best way to master journal entries is through practice. Here are
numerous examples that illustrate some common journal entries. The
first example is a complete walkthrough of the process.
Example 1: ABC Company borrowed $300,000 from the bank
Borrowing money journal entry
• The accounts affected are cash (asset) and bank loan payable
(liability)
• Cash is increasing because we are receiving cash from the bank and
bank loan payable is increasing because the company is increasing
its liability to pay back the bank at a later date
• The amount in question is $300,000
• A = L + SE, A is increased by 300,000 and L is also increased by
300,000, keeping the accounting equation intact
Therefore, the journal entry would look like:
DR Cash: 300,000
CR Bank Loan Payable: 300,000
Example 2: Purchased equipment for $650,000 in cash
Purchasing equipment The accounts affected are cash (asset) and equipment (asset)
journal entry
DR Equipment: 650,000
CR Cash: 650,000
Example 3: Purchased inventory costing $90,000 for $10,000 in cash and the
Purchasing inventory remaining $80,000 on account.
journal entry
DR Inventory: 90,000
CR Cash: 10,000
CR Accounts Payable: 80,000
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