Journal entries are learned the way chords are — hands on, wrong a few times, then suddenly automatic. These eight scenarios are the classics every course and interview draws from: investment, credit purchases, accruals, unearned revenue, prepaids, depreciation, and the double-count trap. Instant scoring, every answer explained.
Journal Entry Practice
8 scenario entries · instant scoring · the classics that trip everyone
1. Owner invests $10,000 cash to start the business:
2. Purchased $3,000 equipment: half cash, half on account:
3. Performed services for $2,000, customer will pay next month:
4. Received $1,200 in advance for a 12-month service contract:
5. Month-end: one month of that $1,200 contract is now delivered:
6. Paid $900 for a 3-month insurance policy, coverage starting today:
7. Recorded $250 of depreciation for the month:
8. Paid employees $1,800 for wages earned last month (already accrued):
The pattern behind every correct answer here is the same two questions: what did the business receive, and what did it give or owe? Entries 4, 5 and 8 — unearned revenue and the pre-accrued payment — are where most marks die in exams and most errors live in real books; if those were your misses, re-run just them. Foundations shaky? Step back to the debits & credits quiz first. And for what these entries build toward, the balance sheet is where they all land.
FAQ
How do I get better at journal entries? Scenario practice with explanations — ask what was received and what was given/owed, assign natures, and check totals. Reps beat memorizing lists.
What is the most commonly missed journal entry? Payments of previously accrued expenses — expensing them again at payment double-counts; the payment clears the payable.
When is revenue recorded in a journal entry? When earned — services performed or goods delivered — regardless of cash timing; advance receipts sit in unearned revenue until earned.