Debits & Credits
You buy a $100.00 piece of software
Checking Account, Software & Web Hosting Expense
Dr | Software & Web Hosting Expense | $100.00
Cr | Checking Account | $100.00
You buy a $5.00 lunch
Savings Account, Business Meals Expense
Dr | Business Meals Expense | $5.00
Cr | Savings Account | $5.00
You buy a $1.00 newspaper
Cash on Hand, Publication & Subscription Expense
Dr | Publication & Subscription Expense | $1.00
Cr | Cash on Hand | $1.00
You pay a contractor $500.00
Checking Account, Independent Contractor Expense
Dr | Independent Contractor Expense | $500.00
Cr | Checking Account | $500.00
You buy a $70.00 office chair
Credit Card, Furniture & Fixture Expense
Dr | Furniture & Fixture Expense | $70.00
Cr | Credit Card | $70.00
You earn $500.00 of Revenue
Checking Account, Sales Revenue
Dr | Checking Account | $500.00
Cr | Sales Revenue | $500.00
Your lunch was terrible so you get a refund for $5.00
Savings Account, Business Meals Expense
Dr | Savings Account | $5.00
Cr | Business Meals Expense | $5.00
You buy a new Playstation 4 for $400.00
Checking Account, Member Draw
Dr | Member Draw | $400.00
Cr | Checking Account | $400.00
You refund a client $500.00 because you did a terrible job
Checking Account, Returns & Allowances
Dr | Returns & Allowances | $500.00
Cr | Checking Account | $500.00
Your new office chair makes your back sore so your return it for $70.00
Credit Card, Furniture & Fixtures Expense
Dr | Credit Card | $70.00
Cr | Furniture & Fixtures Expense | $70.00
You earn $1000.00 of revenue, but the payment processor took $10.00 in fees prior to depositing it into your account
Checking Account, Sales Revenue, Merchant Fees Expense
Dr | Checking Account | $990.00
Dr | Merchant Fees Expense | $10.00
Cr | Sales Revenue | $1000.00
You transfer $500.00 from your Checking Account to your Savings Account
Checking Account, Savings Account, Money in Transit
Hint: There are TWO transactions for this!
Dr | Money in Transit | $500.00
Cr | Checking Account | $500.00
Dr | Savings Account | $500.00
Cr | Money in Transit | $500.00
You pay off $300.00 on your business credit card using your checking account
Checking Account, Credit Card, Money in Transit
Hint: There are TWO transactions for this
Dr | Money in Transit | $300.00
Cr | Checking Account | $300.00
Dr | Credit Card | $300.00
Cr | Money in Transit | $300.00
You own a coffee shop and buy $2,000.00 of coffee beans
Checking Account, Cost of Goods Sold
Dr | Cost of Goods Sold | $2,000.00
Cr | Checking Account | $2,000.00
You buy $30.00 of office supplies and $25.00 of food for your office kitchen
Credit Card, Office Supply Expense, Office Kitchen Expense
Dr | Office Supply Expense | $30.00
Dr | Office Kitchen Expense | $25.00
Cr | Credit Card | $55.00
You earn $2000 of revenue, but $800.00 got returned and the payment processor took $100.00 of fees prior to depositing it into your account
Checking Account, Sales Revenue, Returns & Allowances, Merchant Fees Expense
Dr | Checking Account | $1,100.00
Dr | Returns & Allowances | $800.00
Dr | Merchant Fees Expense | $100.00
Cr | Sales Revenue | $2000.00
You pay $500.00 towards a bank loan. $350 goes to the principal balance and $150 goes to paying interest
Checking Account, Loan Payable, Interest Expense
Dr | Loan Payable | $350.00
Dr | Interest Expense | $150.00
Cr | Checking Account | $500.00
You reimburse an employee for $30.00 they spent on gas, $20.00 they spent on food, and $100.00 they spent on a hotel
Credit Card, Business Meals Expense, Gas & Auto Expense, Travel & Transportation Expense
Dr | Business Meals Expense | $20.00
Dr | Gas & Auto Expense | $30.00
Dr | Travel & Transportation Expense | $100.00
Cr | Credit Card | $150.00
You earn $30,000.00 of revenue via Amazon. Amazon takes $8000.00 in fees and $2000.00 for marketing prior to depositing it into your account. There were also $1000.00 in returns.
Checking Account, Sales Revenue, Returns & Allowances, Marketing & Advertising Expense, Merchant Fees Expense
Dr | Checking Account | $19,000.00
Dr | Returns & Allowances | $1,000.00
Dr | Marketing & Advertising Expense | $2000.00
Dr | Merchant Fees Expense | $8000.00
Cr | Sales Revenue | $30,000.00
You pay your employee $3000.00. Your employer tax match is $500.00
Checking Account, Payroll Expense - Salary & Wage, Payroll Expense - Payroll Tax
Dr | Payroll Expense - Salary & Wage | $3000.00
Dr | Payroll Expense - Payroll Tax | $500.00
Cr | Checking Account | $3,500.00
You buy a $500.00 piece of jewelry for your significant other
???
Dr | Member Draw | $500.00
Cr | Checking Account | $500.00
You buy a $40.00 bouquet of flowers for your client’s birthday
???
Dr | Gifts Expense | $40.00
Cr | Checking Account | $40.00
You get refunded $100.00 for a car repair gone wrong
???
Dr | Checking Account | $100.00
Cr | Gas & Auto Expense | $100.00
You transfer $100.00 from your Checking Account to your Savings Account
???
Dr | Money in Transit | $100.00
Cr | Checking Account | $100.00
Dr | Savings Account | $100.00
Cr | Money in Transit | $100.00
You earn $9000.00 of revenue
???
Dr | Checking Account | $9000.00
Cr | Sales Revenue | $9000.00