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10 Common Journal Entries (with debits & credits)


Common Journal Entries

Here's a list of the common Journal entries:



When payment is received


DR Cash

CR Deferred Revenue


When revenue is earned


DR Deferred Revenue

CR Revenue



When you purchase something


DR Prepaid Expense

CR Cash


When you incur an expense


DR expense (ex: office supplies)


CR Prepaid Expense


3️⃣ Depreciation


DR Depreciation expense


CR Accumulated Depreciation





DR expense (ex: office supplies)


CR accrued expenses


5️⃣ Inventory


when inventory is purchased


DR Inventory (or raw materials / WIP / finished goods)

CR cash


When goods are sold


DR COGS


CR Inventory (or related acct)


6️⃣ Accrued Interest


DR Interest Expense

CR Accrued Interest


7️⃣ Security Deposit


DR Security Deposit

CR Cash


8️⃣ Intercompany balances


If money is sent to affiliate co


DR Due to/from affiliate co

CR Cash


flip the order if cash is received


9️⃣ Accrued Payroll


When cash is paid..


DR Accrued Payroll

CR Cash


When reconciling payroll…


DR Payroll expense

CR Accrued Payroll


🔟 Amortization


DR Amortization expense

CR Accumulated Amortization


Way to go - now you know your Debits & Credits within the common journal entries! 👏

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