Here is a complete list of 100 journal

entries covering real-world audit

Accounts Receivable Adjustments

1. Recording Allowance for Doubtful Accounts:

Dr. Bad Debt Expense

Cr. Allowance for Doubtful Accounts

2. Writing Off Uncollectible Accounts Receivable:

Dr. Allowance for Doubtful Accounts

Cr. Accounts Receivable

1
3. Reclassifying Customer Advance as Accounts Receivable:

Dr. Accounts Receivable

Cr. Customer Advances

4. Adjusting for Early Payment Discount (underestimated):

Dr. Sales Discount

Cr. Accounts Receivable

5. Correcting Overstated Receivable:

Dr. Sales Revenue

Cr. Accounts Receivable

Revenue Adjustments

6. Deferring Revenue Recognized in Advance:

Dr. Revenue

Cr. Deferred Revenue

7. Reclassifying Non-Operating Income as Operating Revenue:

Dr. Operating Revenue

Cr. Non-Operating Income

2
8. Recording Accrued Revenue for Services Rendered but Not Billed:

Dr. Accounts Receivable

Cr. Revenue

9. Adjusting Sales Returns and Allowances:

Dr. Sales Returns and Allowances

Cr. Accounts Receivable

10. Recording Unbilled Revenue for Work Completed:

Dr. Contract Asset

Cr. Revenue

Inventory Adjustments

11. Writing Down Obsolete Inventory:

Dr. Inventory Write-Down Expense

Cr. Inventory

3
12. Adjusting Inventory for Shrinkage:

Dr. Shrinkage Expense

Cr. Inventory

13. Reclassifying Finished Goods as Work in Progress:

Dr. Work in Progress

Cr. Finished Goods

14. Recording Inventory Cost Adjustment for Supplier Discount:

Dr. Accounts Payable

Cr. Inventory

15. Adjusting for Goods in Transit Included in Inventory (FOB Shipping Point):

Dr. Purchases

Cr. Accounts Payable

Expense Adjustments

16. Reclassifying Advertising Expense from Sales to Marketing:

Dr. Marketing Expense

Cr. Sales Expense

4
17. Correcting Misclassified Repair Expense as Asset:

Dr. Repair Expense

Cr. Fixed Assets

18. Accruing Utilities Expense:

Dr. Utilities Expense

Cr. Accrued Liabilities

19. Adjusting Underestimated Accrued Expense:

Dr. Expense (e.g., Wages)

Cr. Accrued Liabilities

20. Reversing Overstated Expense (e.g., Travel):

Dr. Travel Expense

Cr. Accrued Liabilities

5
Depreciation and Amortization Adjustments

21. Correcting Depreciation for an Asset with an Incorrect Useful Life:

Dr. Depreciation Expense

Cr. Accumulated Depreciation

22. Recording Depreciation Expense for a Fully Depreciated Asset Still in Use:

Dr. Depreciation Expense

Cr. Accumulated Depreciation

23. Reclassifying Amortization Expense from General to Administrative:

Dr. Administrative Expense

Cr. General Expense

24. Adjusting Overstated Depreciation Expense:

Dr. Accumulated Depreciation

Cr. Depreciation Expense

25. Recording Accumulated Depreciation for an Asset Omitted in Prior Year:

Dr. Retained Earnings

Cr. Accumulated Depreciation

6
Fixed Asset Reclassifications and Adjustments

26. Adjusting Disposal of Fixed Assets (for a fully depreciated asset sold):

Dr. Accumulated Depreciation

Dr. Cash

Cr. Fixed Asset

27. Correcting Capitalized Repair Cost to Expense:

Dr. Repairs and Maintenance Expense

Cr. Fixed Assets

28. Adjusting Fair Value Revaluation of Property (increase in fair value):

Dr. Fixed Asset

Cr. Revaluation Surplus (Equity)

29. Recording Impairment Loss on Fixed Asset:

Dr. Impairment Loss

Cr. Fixed Assets

7
30. Reclassifying Asset Type (e.g., from Machinery to Vehicles):

Dr. Vehicles

Cr. Machinery

Accruals and Prepayments Adjustments

31. Recording Accrued Revenue (e.g., interest earned but not received):

Dr. Interest Receivable

Cr. Interest Revenue

32. Adjusting Over-Accrued Expenses (overestimated utility accrual):

Dr. Accrued Liabilities

Cr. Utility Expense

33. Reclassifying Prepaid Insurance Expensed during the Period:

Dr. Insurance Expense

Cr. Prepaid Insurance

34. Reversing Accrued Expense No Longer Needed:

Dr. Accrued Liabilities

Cr. Expense (e.g., Rent)

8
35. Reclassifying Interest Payable as Current Liability:

Dr. Interest Payable (Non-current)

Cr. Interest Payable (Current)

Loan and Interest Adjustments

36. Accruing Interest on Loan Payable:

Dr. Interest Expense

Cr. Interest Payable

37. Adjusting Interest Expense due to Misstatement:

Dr. Interest Payable

Cr. Interest Expense

38. Reclassifying Principal Portion of Loan Payment from Expense to Liability:

Dr. Loan Payable

Cr. Interest Expense

9
39. Recording Loan Accrued but Not Yet Recorded:

Dr. Loan Receivable

Cr. Interest Revenue

40. Recording Principal Repayment Misclassified as Interest Expense:

Dr. Interest Expense

Cr. Loan Payable

Accounts Payable Adjustments

41. Recording Accounts Payable for Goods Received but Not Invoiced:

Dr. Inventory

Cr. Accounts Payable

42. Reclassifying Vendor Payment Recorded as Other Expenses:

Dr. Accounts Payable

Cr. Other Expenses

43. Adjusting Duplicate Accounts Payable Entry:

Dr. Accounts Payable

Cr. Expense (e.g., Office Supplies)

10
44. Accruing Unrecorded Invoice:

Dr. Expense (e.g., Utilities)

Cr. Accounts Payable

45. Recording Early Payment Discount on Accounts Payable:

Dr. Accounts Payable

Cr. Cash

Cr. Discount Received

Cash and Bank Adjustments

46. Correcting Bank Fees Unrecorded from Reconciliation:

Dr. Bank Charges Expense

Cr. Cash

47. Recording Bank Interest Earned Unrecorded in Ledger:

Dr. Cash

Cr. Interest Revenue

11
48. Adjusting Cash Balance for NSF Check Returned:

Dr. Accounts Receivable

Cr. Cash

49. Recording Bank Transfer Not Updated in Books:

Dr. Cash (Bank A)

Cr. Cash (Bank B)

50. Reclassifying Overstated Cash from Customer Payment Applied Twice:

Dr. Cash

Cr. Accounts Receivable

Payroll and Employee Benefits Adjustments

51. Recording Unpaid Salaries at Year-End:

Dr. Salaries Expense

Cr. Salaries Payable

52. Accruing for Vacation Pay Earned but Not Taken:

Dr. Vacation Pay Expense

Cr. Accrued Vacation Pay

12
53. Adjusting Bonus Accrual for Final Amount:

Dr. Bonus Expense

Cr. Bonus Payable

54. Reclassifying Payroll Taxes as Current Liability:

Dr. Payroll Tax Expense

Cr. Payroll Tax Payable

55. Recording Employee Benefits Expense Not Recognized:

Dr. Employee Benefits Expense

Cr. Employee Benefits Payable

Equity Adjustments

56. Recording Stock Issuance for Cash:

Dr. Cash

Cr. Common Stock

Cr. Additional Paid-In Capital

13
57. Adjusting Retained Earnings for Prior Period Adjustment:

Dr. Retained Earnings

Cr. Expense (e.g., Depreciation Expense)

58. Reclassifying Dividend Declared from Retained Earnings:

Dr. Retained Earnings

Cr. Dividends Payable

59. Recording Treasury Stock Purchase:

Dr. Treasury Stock

Cr. Cash

60. Correcting Overstated Additional Paid-In Capital:

Dr. Additional Paid-In Capital

Cr. Retained Earnings

Tax and Deferred Tax Adjustments

61. Recording Deferred Tax Asset for Tax Deductible Temporary Difference:

Dr. Deferred Tax Asset

Cr. Deferred Tax Expense

14
62. Recording Deferred Tax Liability for Temporary Timing Difference:

Dr. Deferred Tax Expense

Cr. Deferred Tax Liability

63. Adjusting Overestimated Deferred Tax Liability:

Dr. Deferred Tax Liability

Cr. Deferred Tax Expense

64. Recording Income Tax Expense for Prior Period Understatement:

Dr. Retained Earnings

Cr. Income Tax Payable

65. Reclassifying Tax Penalty Expense from Tax to Other Expense:

Dr. Other Expense

Cr. Tax Expense

15
Provisions and Contingency Adjustments

66. Recording Provision for Warranty Obligations:

Dr. Warranty Expense

Cr. Warranty Provision

67. Adjusting Provision for Environmental Liability:

Dr. Environmental Expense

Cr. Provision for Environmental Liability

68. Reclassifying Provision for Pending Lawsuit:

Dr. Legal Expense

Cr. Provision for Lawsuit

69. Reversing Overestimated Provision for Restructuring Costs:

Dr. Provision for Restructuring

Cr. Restructuring Expense

70. Recording Provision for Potential Fines:

Dr. Expense (Fines & Penalties)

Cr. Provision for Fines

16
Lease Adjustments

71. Recording Right-of-Use Asset for Lease Agreement:

Dr. Right-of-Use Asset

Cr. Lease Liability

72. Amortizing Right-of-Use Asset for the Period:

Dr. Amortization Expense

Cr. Accumulated Amortization - Right-of-Use Asset

73. Recording Lease Payment Applied Against Lease Liability:

Dr. Lease Liability

Cr. Cash

74. Adjusting Incorrectly Capitalized Lease Expense:

Dr. Lease Expense

Cr. Lease Liability

75. Recording Lease Incentive Received:

Dr. Cash

Cr. Lease Liability

17
Reclassification Entries

76. Reclassifying Investment from Short-Term to Long-Term:

Dr. Long-Term Investments

Cr. Short-Term Investments

77. Reclassifying Part of Loan from Non-Current to Current:

Dr. Loan Payable (Non-Current)

Cr. Loan Payable (Current)

78. Reclassifying Employee Benefit Expense from G&A to Operational:

Dr. Operational Expense

Cr. General & Administrative Expense

79. Reclassifying Accrued Interest from Revenue to Other Income:

Dr. Interest Revenue

Cr. Other Income

18
80. Reclassifying Intangible Assets from Goodwill to Patents:

Dr. Patents

Cr. Goodwill

Investment and Fair Value Adjustments

81. Recording Unrealized Gain on Investment at Fair Value:

Dr. Investment (Asset)

Cr. Unrealized Gain on Investment (Equity)

82. Recognizing Impairment Loss on Investment:

Dr. Impairment Loss

Cr. Investment

83. Adjusting for Realized Gain on Sale of Investment:

Dr. Cash

Cr. Investment

Cr. Realized Gain on Investment

19
84. Recording Dividend Income from Investment:

Dr. Cash

Cr. Dividend Income

85. Reclassifying Investment in Subsidiary to Non-Current:

Dr. Investment in Subsidiary (Non-Current)

Cr. Investment (Current)

Miscellaneous Adjustments

86. Reclassifying Gift Cards Issued from Revenue to Deferred Revenue:

Dr. Revenue

Cr. Deferred Revenue

87. Correcting Misposted Exchange Gain on Foreign Transactions:

Dr. Foreign Exchange Loss

Cr. Foreign Exchange Gain

88. Reclassifying Refundable Deposit from Revenue to Liability:

Dr. Revenue

Cr. Security Deposits (Liability)

20
89. Recording Write-Off of Equipment No Longer in Use:

Dr. Accumulated Depreciation

Dr. Loss on Disposal of Equipment

Cr. Equipment

90. Adjusting Miscellaneous Expense to Correct Category (e.g., Office Supplies):

Dr. Office Supplies

Cr. Miscellaneous Expense

Finalizing Consolidation Entries

91. Eliminating Intercompany Receivables and Payables on Consolidation:

Dr. Intercompany Payable

Cr. Intercompany Receivable

92. Recording Minority Interest in Subsidiary:

Dr. Retained Earnings

Cr. Minority Interest

21
93. Eliminating Intercompany Sales:

Dr. Sales Revenue

Cr. Cost of Goods Sold

94. Reclassifying Intercompany Loan Payable to Capital:

Dr. Loan Payable

Cr. Capital Contribution

95. Recording Adjustment for Foreign Subsidiary Translation:

Dr. Cumulative Translation Adjustment

Cr. Foreign Currency Gain

Final Adjustments and Closing Entries

96. Adjusting Retained Earnings for Unrecorded Expense (Prior Period):

Dr. Retained Earnings

Cr. Expense (e.g., Salaries)

97. Closing Revenue Accounts to Income Summary:

Dr. Revenue

Cr. Income Summary

22
98. Closing Expense Accounts to Income Summary:

Dr. Income Summary

Cr. Expenses

99. Transferring Income Summary to Retained Earnings:

Dr. Income Summary

Cr. Retained Earnings

100. Recording Adjustment for Cumulative Effect of Accounting Change:

Dr. Retained Earnings

Cr. Adjustment for Accounting Change

This completes the list of 100 journal entries, covering a broad range of real-world
audit adjustments and reclassifications. Let me know if you need further details on
any specific entries!

#ATP

23