10 Common Journal Entries (with debits & credits)

1️⃣ Deferred Revenue

When payment is received

DR Cash

CR Deferred Revenue

When revenue is earned

DR Deferred Revenue

CR Revenue

2️⃣ Prepaid Expense

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

4️⃣ Accrued Expense

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! 👏