This document provides examples of common accounting journal entries for cash transactions. It describes entries for: 1) Purchasing assets and paying expenses with cash, which debit asset or expense accounts and credit cash. 2) Receiving cash from selling assets, borrowing money, or issuing stock, which debit cash and credit asset, liability, or equity accounts. 3) Repaying liabilities with cash, which debit the liability and credit cash.

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2. ACCOUNTING JOURNAL ENTRIES
Some Entries Examples:-
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3. * Cash payment transactions
1. Purchase of assets in cash
2. Repayment of liabilities in cash
3. Payment of expenses in cash
* Cash receipt transactions
4. Sale of assets in cash
5. Borrowing money
6. Issuance of stock
* Cash payment transactions
1. Purchase of assets in cash
1a. Purchased merchandise and paid $2,000 in cash
1b. Purchased equipment and paid $15,000 in cash
2. Repayment of liabilities in cash
2a. Repaid $7,000 of bank loans
2b. Paid $3,000 accounts payable
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4. 3. Payment of expenses in cash
3a. Paid $3,500 rent expense
3b. Paid $6,000 salaries expense
* Cash receipt transactions
4. Sale of assets in cash
4a. Sold merchandise and received $6,500 in cash
The cost of merchandise sold was 5,100
4b. Sold an equipment and received $8,600 in cash
The book value of the equipment was $8,000
5. Borrowing money
5a. Borrowed $9,000 in cash
5b. Issued a promissory note and received $11,000 in cash
6. Issuance of stock
6a. Issued 500 shares of common stock, at $50 per share
6b. Issued 200 shares of preferred stock, at $80 per share
MAIWAND WAZIRI

5. Cash payment transactions
1. Purchase of assets in cash
1a. Purchased merchandise and paid $2,000 in cash
debit: increase in assets (merchandise)
credit: decrease in assets (cash)
1b. Purchased an equipment and paid $15,000 in cash
debit: increase in assets (equipment)
credit: decrease in assets (cash)
debit credit
merchandise 2,000
cash 2,000
debit credit
equipment 15,000
cash 15,000
MAIWAND WAZIRI

6. debit credit
borrowings 7,000
cash 7,000
2. Repayment of liabilities in cash
2a. Repaid $7,000 of bank loans
debit: decrease in liabilities (borrowings)
credit: decrease in assets (cash)
2b. Paid $3,000 accounts payable
debit credit
accounts payable 3,000
cash 3,000
debit: decrease in liabilities (accounts payable)
credit: decrease in assets (cash)
MAIWAND WAZIRI

7. debit credit
rent expense 3,500
cash 3,500
debit: increase in expenses (rent expense)
credit: decrease in assets (cash)
3. Payment of expenses in cash
3a. Paid $3,500 rent expense
debit credit
salaries expense 6,000
cash 6,000
3b. Paid $6,000 salaries expense
debit: increase in expenses (salaries expense)
credit: decrease in assets (cash)
MAIWAND WAZIRI

8. debit credit
cash 6,500
sales 6,500
debit: increase in assets (cash)
credit: increase in revenue (sales)
Cash receipt transactions
4. Sale of assets in cash
4a. Sold merchandise and received
$6,500 in cash
debit credit
cost of goods sold 5,100
merchandise 5,100
The cost of merchandise sold was 5,100
debit: increase in assets (cash)
credit: increase in revenue (sales)
MAIWAND WAZIRI

9. 4b. Sold an equipment and received $8,600 in cash
The book value of the equipment was $8,000
debit credit
cash 8,600
equipment 8,000
gain on sale of
equipment
600
debit: increase in assets (cash)
credit: increase in revenue (sales)
5. Borrowing money
5a. Borrowed $9,000 in cash
debit credit
cash 9,000
borrowings 9,000
debit: increase in assets (cash)
credit: increase in liabilities (borrowings)
MAIWAND WAZIRI

10. debit credit
cash 11,000
notes payable 11,000
5b. Issued a promissory note and received $11,000 in cash
debit: increase in assets (cash)
credit: increase in liabilities (notes
payable)
6. Issuance of stock
6a. Issued 500 shares of common stock, at
$50 per share
debit credit
cash 25,000
Common stock 25,000
debit: increase in assets (cash)
credit: increase in equity (common stock)
MAIWAND WAZIRI

11. debit credit
cash 16,000
Preferred stock 16,000
debit: increase in assets (cash)
credit: increase in equity (preferred stock)
6b. Issued 200 shares of preferred
stock, at $80 per share
MAIWAND WAZIRI

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