Free resources
Journal Entry Examples
24 step-by-step journal entry examples with debits, credits, explanations, and common mistakes.
Adjusting Entries
Accrued Expenses Journal Entry: How to Record Accruals
Learn how to record accrued expenses with journal entries. Covers the concept of expense recognition under accrual accounting, with examples for wages, interest, and utilities.
Prepaid Expenses Journal Entry: Step-by-Step (With Worked Examples)
Learn how to record prepaid expenses when cash is paid in advance and how to amortize them to expense over time as the benefit is consumed.
Accrued Expense Journal Entry: Month-End Example
Walk through a realistic month-end accrued expense entry from initial accrual through reversal and payment. Covers wages, legal fees, and contractor costs with proper period matching.
Prepaid Expense Adjusting Entry: Step-by-Step
Step-by-step guide to recording the adjusting entry that moves prepaid balances into expense. Covers rent, insurance, and software subscriptions with period-end calculations.
Interest Expense Accrual Journal Entry
Learn how to accrue interest expense at period-end for loans, notes payable, and lines of credit. Covers the calculation formula, monthly accruals, quarterly payment clearing, and partial-period prorations.
Accrued Revenue Journal Entry: Earned but Not Yet Billed
Learn how to record accrued revenue when services are delivered before invoicing. Covers the month-end accrual, the billing event, cash collection, and how to avoid double-counting revenue.
Revenue Recognition
Unearned Revenue Journal Entry: Deferral and Recognition
Learn how to record unearned revenue when cash is received in advance and how to recognize it as earned revenue over time with proper journal entries.
Deferred Revenue Journal Entry: SaaS Example
Learn how SaaS and subscription companies record deferred revenue when customers pay upfront for annual plans. Step-by-step entries for initial receipt, monthly recognition, and upgrades.
Sales Returns and Allowances Journal Entry: Step-by-Step
Learn how to record sales returns, allowances, and the impact on net sales and accounts receivable.
Accounts Receivable
Bad Debt Expense Journal Entry: Direct Write-Off vs Allowance Method
Learn both methods for recording bad debt expense: the direct write-off method and the allowance method. Includes entries for estimating, writing off, and recovering bad debts.
Allowance Method for Bad Debt: Journal Entry Guide
Complete walkthrough of the allowance method for bad debts — from building an aging schedule and estimating uncollectible amounts to recording write-offs and handling unexpected recoveries.
Allowance for Doubtful Accounts Journal Entry
Understand how the Allowance for Doubtful Accounts works as a contra-asset to reduce receivables to net realizable value. Covers estimation, write-offs, recoveries, and balance sheet presentation.
Long-Term Liabilities
Bonds Payable Journal Entries: Issuance, Interest, and Retirement
Complete guide to bonds payable journal entries including issuance at par, at a discount, and at a premium, plus interest payments and bond retirement entries.
Notes Payable Interest Journal Entry: Borrowing and Accrual
Learn how to record note issuance, month-end interest accrual, and repayment entries for short-term borrowing.
Deferred Revenue
Deferred Revenue Journal Entry: Recognition Over Service Period
Learn how to record upfront cash receipts as deferred revenue and recognize them over the service period. Covers monthly recognition, partial-period calculations, and year-end balance sheet presentation.
Unearned Revenue Refund Journal Entry
Learn how to record refunds for unearned revenue including full refunds, partial refunds after partial delivery, and non-refundable deposit forfeitures. Covers the impact on both the balance sheet and income statement.