Welcome back to our blog, today we are going to solve some simple journal entries questions, and answers that can help you understand the basics of accounting.
Simple Journal Entries Questions And Answers
It is important to understand the types of journal entries. From straightforward entries like revenues and expenses to more complex entries involving adjustments, each type serves a different purpose.
Examples of Simple Journal Entries
Let me give you some examples of journal entries:
- Revenue Journal Entries
- Expense Journal Entries
- Accruals Journal Entries
- Deferrals Journal Entries
These entries are used for day-to-day business activities, which is why we have added some journal entry questions based on these concepts.
simple journal entries questions and answers
- Question 1:
On January 1, 2024, ABC Corp invested 10,000 cash to start a business. Create the journal entry for this transaction.
Jan 1Cash10,000
Capital (Owner's Equity)10,000
- Question 2:
ABC Corp purchased office supplies for 500 on account from XYZ Suppliers. Record the journal entry for this purchase.
Jan 2Office Supplies500
Accounts Payable500
- Question 3:
ABC Corp provided services for 1,200 in cash. Record the journal entry for this service revenue.
Jan 3Cash1,200
Service Revenue1,200
- Question 4:
The company paid 300 for rent for January. Create the journal entry for this rent payment.
Jan 4Rent Expense300
Cash300
- Question 5:
ABC Corp received 800 in advance for services to be provided next month. Record the journal entry for this received advance payment.
Jan 5Cash800
Unearned Revenue800
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Conclusion
Here in this post, we add some simple journal entries questions, and answers so if you want to understand the basic concept od journal entry then you should read this post till the end.