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Financial Accounting Course

Accounting Journal Entry
Examples 01

U.S. GAAP Codification, Accounting Textbooks

Financial Accounting, Intermediate Accounting, Advanced Accounting

Accounting Journal Entry Examples 01

* 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 an 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

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

Cash payment transactions

1. Purchase of assets in cash

1a. Purchased merchandise and paid $2,000 in cash

	debit	credit
merchandise	2,000
cash		2,000

debit: increase in assets (merchandise)
credit: decrease in assets (cash)

1b. Purchased an equipment and paid $15,000 in cash

	debit	credit
equipment	15,000
cash		15,000

debit: increase in assets (equipment)
credit: decrease in assets (cash)

2. Repayment of liabilities in cash

2a. Repaid $7,000 of bank loans

	debit	credit
borrowings	7,000
cash		7,000

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)

3. Payment of expenses in cash

3a. Paid $3,500 rent expense

	debit	credit
rent expense	3,500
cash		3,500

debit: increase in expenses (rent expense)
credit: decrease in assets (cash)

3b. Paid $6,000 salaries expense

	debit	credit
salaries expense	6,000
cash		6,000

debit: increase in expenses (salaries expense)
credit: decrease in assets (cash)

Cash receipt transactions

4. Sale of assets in cash

4a. Sold merchandise and received $6,500 in cash

	debit	credit
cash	6,500
sales		6,500

debit: increase in assets (cash)
credit: increase in revenue (sales)

The cost of merchandise sold was 5,100

	debit	credit
cost of goods sold	5,100
merchandise		5,100

debit: increase in assets (cash)
credit: increase in revenue (sales)

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)

5b. Issued a promissory note and received $11,000 in cash

	debit	credit
cash	11,000
notes payable		11,000

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)

6b. Issued 200 shares of preferred stock, at $80 per share

	debit	credit
cash	16,000
Preferred stock		16,000

debit: increase in assets (cash)
credit: increase in equity (preferred stock)

Codification Topics at the 100 Level

Topic 105: Generally Accepted Accounting Principles

Codification Topics at the 200 Level

Topic 205: Presentation of Financial Statements

Topic 210: Balance Sheet

Topic 215: Statement of Shareholder Equity

Topic 220: Comprehensive Income

Topic 225: Income Statement

Topic 230: Statement of Cash Flows

Topic 235: Notes to Financial Statements

Topic 250: Accounting Changes and Error Corrections

Topic 255: Changing Prices

Topic 260: Earnings per Share

Topic 270: Interim Reporting

Topic 272: Limited Liability Entities

Topic 274: Personal Financial Statements

Topic 275: Risks and Uncertainties

Topic 280: Segment Reporting

Codification Topics at the 300 Level

Topic 305: Cash and Cash Equivalents

Topic 310: Receivables

Topic 320: Investments-Debt and Equity Securities

Topic 320-10-35: Transfers of Securities: Between Categories

Topic 323: Investments-Equity Method and Joint Ventures

Topic 325: Investments-Other

Topic 330: Inventory

Topic 340: Other Assets and Deferred Costs

Topic 350: Intangibles-Goodwill and Other

Topic 360: Property, Plant, and Equipment

Codification Topics at the 400 Level

Topic 405: Liabilities

Topic 410: Asset Retirement and Environmental Obligations

Topic 420: Exit or Disposal Cost Obligations

Topic 430: Deferred Revenue

Topic 440: Commitments

Topic 450: Contingencies

Topic 460: Guarantees

Topic 470: Debt

Topic 480: Distinguishing Liabilities from Equity

U.S. GAAP Codification of Accounting Standards

Accounting Standards Codification, ASC, Overview

ASC Codification 100: General Principles

ASC Codification 200: Presentation

ASC Codification 300: Assets

ASC Codification 400: Liabilities

ASC Codification 500: Equity

ASC Codification 600: Revenue

ASC Codification 700: Expenses

ASC Codification 800: Broad Transactions

ASC Codification 900: Industry

U.S. GAAP by Codification Topic

105 GAAP Hierarchy
105 GAAP History

205 Presentation of Financial Statements
205-20 Discontinued Operations
210 Balance Sheet
210-20 Offsetting
220 Comprehensive Income
225 Income Statement
225-20 Extraordinary and Unusual Items
230 Statement of Cash Flows
250 Accounting Changes and Error Corrections
260 Earnings per Share
270 Interim Reporting

310 Impairment of a Loan
320 Investment Securities
320 Other-Than-Temporary Impairments, FSP FAS 115-2
320-10-05 Overview of Investments in Other Entities
320-10-35 Reclassification of Investments in Securities
323-10 Equity Method Investments
323-30 Investments in Partnerships and Joint Ventures
325-20 Cost Method Investments
330 Inventory

340-20 Capitalized Advertising Costs
350-20 Goodwill
350-30 Intangibles Other than Goodwill
350-40 Internal-Use Software
350-50 Website Development Costs
360 Property, Plant and Equipment
360-20 Real Estate Sales

410 Asset Retirement and Environmental Obligations
420 Exit or Disposal Cost Obligations
450 Contingencies
450-20 Loss Contingencies
450-30 Gain Contingencies
480 Redeemable Financial Instruments

505-20 Stock Dividends, Stock Splits
505-30 Treasury Stock

605 SEC Staff Accounting Bulletin, Topic 13
605-25 Revenue Recognition - Multiple Element Arrangements

715-30 Defined Benefit Plans - Pension
718 Share-Based Payment
730 Research and Development
730-20 Research and Development Arrangements

805 Business Combinations
810 Consolidation
810 Noncontrolling Interests
810 Consolidation of Variable Interest Entities, SFAS 167

815 Derivatives and Hedging Overview

820 Fair Value Measurements
820 Fair value when the markets are not active, FSP FAS 157-4
825 Fair Value Option

830 Foreign Currency Matters
830-20 Foreign Currency Transactions
830-30 Translation of Financial Statements
835 Interest
835-20 Capitalization of Interest
835-30 Imputation of Interest

840 Leases
840-20 Operating Leases
840-30 Capital Leases
840-40 Sale-Leaseback Transactions
845 Nonmonetary Transactions

855 Subsequent Events
860-20 Sale of Financial Assets, SFAS 166
860-50 Servicing Assets and Liabilities, SFAS 156

985-20 Costs of software to be sold

U.S. GAAP by Topic

Accounting Topics