How to Do Journal Entries (for Homework)

Learn the right way to record accounting transactions for your homework — step by step, with examples and explanations.

Understanding the Foundation of Journal Entries

In accounting, every transaction a business makes must be recorded accurately to reflect its financial reality. Journal entries are the foundation of this process — the first record of any financial transaction. Each entry captures what was gained, what was given, and how the business is affected overall.

A journal entry typically includes:

The date of the transaction
Accounts affected (at least one debit and one credit)
Amounts
A short explanation of the transaction

Step 1: Identify the Transaction

Before writing an entry, analyze the transaction carefully. Ask:

What did the business receive?
What did the business give in exchange?
Which accounts are involved?

Example: If a company buys office supplies for cash:

Supplies (Asset) increases
Cash (Asset) decreases

Step 2: Determine Account Types and Their Effects

Account Type	Increases With	Decreases With
Assets	Debit	Credit
Liabilities	Credit	Debit
Equity	Credit	Debit
Revenue	Credit	Debit
Expenses	Debit	Credit

Step 3: Record the Journal Entry

Example 1: Purchase of office supplies for cash

Date	Account Titles and Explanation	Debit ($)	Credit ($)
Nov 3	Supplies	500
	Cash		500
	Purchased office supplies for cash

💡 Tip: Always write debit entries first, followed by credit entries, slightly indented.

Step 4: Keep the Accounting Equation Balanced

Every journal entry must maintain this balance:

Assets = Liabilities + Equity

In the supplies example, total assets stay the same — one asset increases while another decreases — keeping the equation balanced.

Step 5: Post to the Ledger

After journalizing, transactions are transferred to the general ledger, grouping similar transactions together. This step helps prepare financial statements and detect discrepancies early.

Common Mistakes Students Make

Confusing asset and expense accounts
Forgetting the double-entry rule
Ignoring transaction details like cash or credit
Skipping explanations for entries
Simple math or balancing errors

Example 2: Recording Revenue on Credit

Transaction: On November 10, services worth $1,000 were provided on account.

Date	Account Titles and Explanation	Debit ($)	Credit ($)
Nov 10	Accounts Receivable	1,000
	Service Revenue		1,000
	Provided services on account

Revenue increases (credit), and Accounts Receivable increases (debit), keeping the entry balanced.

Step 6: Review and Learn

Before submitting homework:

Ensure total debits equal total credits.
Use correct account names from your chart of accounts.
Keep explanations short but clear.

With consistent practice, journal entries become second nature and help you understand the logic behind financial reporting.

Final Thoughts

Mastering journal entries isn’t about memorization — it’s about understanding the relationships between accounts. Once you grasp how each transaction affects the accounting equation, the process becomes intuitive and efficient.

Practice, analyze, and review your entries carefully. Over time, you’ll gain the confidence to tackle even complex accounting problems independently.