Pay Bills
A deposit into your savings account from your cash account.
Debit Savings, Credit Cash
Payment of a telephone bill.
Debit Telephone Expense, Credit Checking
Pay for computer paper.
Debit Office Supplies, Credit Checking or Cash
Cut customer's lawn. Customer paid in cash.
Credit Service, Debit Cash
Pay monthly mortgage payment.
Credit Checking, Debit Mortgage
Purchase Inventory on account.
Credit Accounts Payable, Debit Inventory
Customer purchases something on account. (Don't worry about the sales tax or the cost of the items purchased.)
Debit Account Receivables, Credit Sales
Pay Sales Tax due to the State government.
Debit Sales Tax Payable, Credit Checking.
Purchase donuts for party. Pay with cash.
Debit Food, Credit Cash.
Pay car loan with check.
Debit Car Loan, Credit Checking, Debit Interest Expense
Pay Rent by check
Debit Rent, Credit Checking
Prepay insurance for the year with a check.
Debit Insurance (Asset), Credit Checking
Take money out of checking account for personal use.
Debit Owner's Draw (Capital), Credit Checking.
After customer makes a purchase of inventory, account for the cost price.
Credit Inventory/Merchandise, Debit COGS.
Pay Gas Bill with a credit card.
Debit Utilities, Credit Accounts Payable.
Purchase desks for company on account.
Debit Furniture, Credit Account Payables.
Customer purchased goods for $130. This price included Sales Tax of $15. Original Cost Price of the merchandise was $75. Paid in cash.
Credit Merchandise $75, Debit COGS $75, Credit Sales $115, Credit Sales Tax Payable $15, Debit Cash $130.
Owner Invested additional money into his company. Deposited this amount into the company's savings account.
Credit Capital, Debit Savings
Receive a dividend check. Deposit it into savings account.
Credit Dividend Account, Debit Savings
Purchase sewing machines for company with a credit card.
Debit Equipment, Credit Credit Cards Payable
Make an adjustment to account for the entire amount of rent paid this year.
Debit Rent, Credit Prepaid Rent
Customer made a partial payment on his account. Paid by check.
Debit Checking, Credit Account Receivables.
Borrow money from Bank of America and deposit the amount into your savings account.
Debit Savings, Credit Bank of America Loan
Make an adjustment for year end depreciation of your car.
Credit Car - Accumulated Depreciation, Debit Depreciation Expense.
Pay for a newspaper subscription to the New York Times with your credit card.
Debit Newspapers, Credit Credit Cards Payable