Accounting & bookkeeping
Accounting Journal Entries: Build Four Balanced Transactions
An accounting journal entry records the accounts and amounts affected by an event. Equal debits and credits are necessary in double-entry recording, but equality does not prove that the chosen accounts describe the event correctly. Start with the source facts, then select the accounts and sides.
Use the stated learning model
This original fictional service business uses an owner-capital account and ordinary cash, supplies, receivables, revenue and rent-expense accounts. Assume the service described is already performed, the supplies remain unused, and the rent payment covers the current period. Ignore tax, interest and adjustments not stated here.
OpenStax separates journal recording from later posting to account ledgers. The task here is to construct the entries from events, not transfer already-approved entries into another record.
Translate the four source events
Write a debit and credit for each event before comparing with the answer key. The references below are fictional document identifiers.
Source events and original answer key
C-01: Owner contributes 6,000 cash. Debit Cash 6,000; credit Owner capital 6,000.
V-12: Unused supplies costing 240 are bought on account. Debit Supplies 240; credit Accounts payable 240.
S-09: A completed service is invoiced for 800, unpaid. Debit Accounts receivable 800; credit Service revenue 800.
R-03: Current-period rent of 150 is paid. Debit Rent expense 150; credit Cash 150.
Across these four entries, total debits = total credits = 7,190.
Explain the account choices
C-01 brings cash into the business from its owner, so it is not service revenue. V-12 adds unused supplies and an amount owed to a supplier; it does not yet pay cash. S-09 records the completed service and the customer’s unpaid balance under the stated exercise model.
R-03 is different from the supplies purchase because the facts explicitly say the current-period rent has been consumed. The timing facts matter. Do not copy that expense treatment to an advance payment or to unused supplies without changing the analysis.
Find a balanced error
Suppose someone records V-12 as debit Rent expense 240 and credit Accounts payable 240. The sides still total 240, but the debit account misdescribes unused supplies. A trial-balance equality check alone would not expose that classification error.
Original explanation
“The entry balances, but the source says unused supplies, not rent. I would propose changing the debit classification through the organization’s correction process and retain the invoice reference. I would not treat balanced totals as complete verification.”
Keep the source and the explanation together
A complete practice answer identifies the event, affected accounts, amounts and reason. An unexplained list of debit/credit rules is harder to apply when the timing changes. Retain document references so another reader can trace the entry.
Try changing S-09 from a completed service to a customer advance before work begins. That is a different event and needs a fresh analysis. Do not silently reuse the completed-service answer or infer a universal revenue-recognition rule from this simplified case.
Questions, answered
Do equal debits and credits prove correctness?
No. The unused-supplies entry can balance while using the wrong debit account.
Is posting part of this exercise?
No. These answers construct journal entries. The related posting tutorial transfers given lines into accounts.
Sources and examples
ResumizeAI team. Examples are fictional teaching material, not customer results. Replace sample details with your own facts.
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