| Course | AC114 Accounting I |
|---|---|
| Unit | Unit 3 |
| Paper type | Journal entry set |
| Length | About 710 words, 5 pages double-spaced |
| Format | APA 7 student paper |
| School | Purdue University Global |
| Program | BS in Accounting |
| Updated | October 2026 |
Free sample paper for AC114 Unit 3
June in Thirteen Entries: A Unit 3 General Journal Set for a Window-Cleaning Corporation's First Month
[Student Name]
Purdue University Global
AC114: Accounting I
Unit 3 Journal Entry Set
[Instructor Name]
[Date]
Brightpane Window Care, Inc., its vendors, customers and amounts are composite; the textbook, framework and revenue standard cited are real.
Format
Each entry gives the date, the account debited with its amount, the account credited with its amount, and an explanation naming the source document. Account numbers come from the chart classified in Unit 2. Journal page references are J1 for June 1 to 12 and J2 for June 15 to 30, so the next unit can post with cross-references. Writing each event once with equal debits and credits is the discipline double entry has required since its earliest printed description (Sangster, 2016).
Page J1
June 1. Cash (101), debit $40,000; Common Stock (311), credit $40,000. Explanation: issued 4,000 shares of common stock at $10 per share to the two founders; stock certificates 1 and 2.
June 1. Truck (167), debit $22,000; Cash (101), credit $7,000; Notes Payable (250), credit $15,000. Explanation: purchased a used pickup truck; $7,000 paid by check 101 and a three-year, 6 percent note to the dealer, principal due at maturity, interest monthly.
June 2. Prepaid Insurance (130), debit $1,800; Cash (101), credit $1,800. Explanation: twelve-month general liability policy, June 1 to May 31, check 102.
June 3. Equipment (157), debit $6,000; Accounts Payable (201), credit $6,000. Explanation: two water-fed pole systems and ladders, Lakeline Supply invoice 4471, net 30.
June 4. Cleaning Supplies (126), debit $650; Cash (101), credit $650. Explanation: squeegee rubbers, solution and microfiber cloths, check 103.
June 8. Cash (101), debit $3,600; Unearned Service Revenue (209), credit $3,600. Explanation: six months of monthly cleaning at Crestview Apartments paid in advance by its property manager, $600 per month beginning June, contract 1.
June 12. Cash (101), debit $4,200; Service Revenue (400), credit $4,200. Explanation: residential jobs completed June 5 to 12 and paid at completion, job tickets 1 to 14.
Page J2
June 15. Salaries Expense (726), debit $2,300; Cash (101), credit $2,300. Explanation: payroll for June 1 to 15, two crew members, checks 104 and 105.
June 19. Accounts Receivable (112), debit $3,100; Service Revenue (400), credit $3,100. Explanation: storefront cleaning for four retail customers, invoices 1001 to 1004, net 15.
June 22. Accounts Payable (201), debit $3,000; Cash (101), credit $3,000. Explanation: partial payment to Lakeline Supply on invoice 4471, check 106.
June 25. Cash (101), debit $1,900; Accounts Receivable (112), credit $1,900. Explanation: payments received on invoices 1001 and 1002.
June 28. Fuel Expense (740), debit $420; Utilities Expense (732), debit $310; Cash (101), credit $730. Explanation: June fuel card statement and phone and scheduling software bills, checks 107 and 108.
June 30. Dividends (332), debit $1,000; Cash (101), credit $1,000. Explanation: dividend of $0.25 per share declared and paid by board resolution of June 30, check 109.
The Entry That Needed a Decision
The June 8 payment from the property manager is cash received for work not yet done, so it is credited to Unearned Service Revenue, a liability, and will move to revenue one month at a time as Brightpane cleans the complex.
Revenue from a contract is recognized as the company satisfies its obligation to the customer (Financial Accounting Standards Board, 2014). On June 8 Brightpane had cleaned nothing at Crestview, so the obligation was entirely unmet. Recording the full $3,600 as revenue would have made June look $3,000 better than it was and would have left the company's balance sheet silent about the five months of work it still owes.
Checks Before Posting
1. Every entry balances: the debits equal the credits on each line group.
2. Total debits on J1 and J2 equal total credits: $90,280 each.
3. Each explanation names a document a poster or auditor can find: a check number, invoice, contract or resolution.
4. The compound entries, the truck and the June 28 bills, are each recorded as one entry so their parts stay together.
Recording transactions in date order in a general journal, before posting them to accounts, keeps a complete chronological record and makes errors easier to locate (Franklin et al., 2019).
References
Financial Accounting Standards Board. (2014). Revenue from contracts with customers (Topic 606) (Accounting Standards Update No. 2014-09). https://www.fasb.org
Franklin, M., Graybeal, P., & Cooper, D. (2019). Principles of accounting, volume 1: Financial accounting. OpenStax. https://openstax.org/details/books/principles-financial-accounting
Sangster, A. (2016). The genesis of double entry bookkeeping. The Accounting Review, 91(1), 299-315. https://doi.org/10.2308/accr-51115
What the AC114 Unit 3 assignment asks for
The third AC114 unit gives a month of transactions to record in a general journal. Enter them in date order with the account debited first and the account credited indented or listed after it. Every entry must balance. Use account titles and numbers from the chart, and write a short explanation under each entry naming the transaction and its source document. When one event affects three or more accounts, record it as a single compound entry. Leave the reference column blank, since posting happens in the next unit. Watch for transactions that need judgment, such as cash received before work is done. Total the debits and credits at the end as a check. Sets usually run two pages. Cite the textbook or standards for any rule explained, in APA 7.
Inside the AC114 Unit 3 example
The sample states its format and the journal page numbers J1 and J2. Page J1 records the stock issue, the truck purchase as a compound entry with cash and a three-year note, the insurance policy, equipment on account, supplies, the Crestview prepayment and cash revenue. Page J2 records salaries, revenue billed on account, a payment to the supplier, a collection, fuel and utilities in one compound entry, and the dividend. Every explanation cites a document number. The highlighted sentence explains why the $3,600 advance is credited to Unearned Service Revenue, and a paragraph cites the revenue standard and quantifies the overstatement the other choice would cause. A list of four checks, including the $90,280 totals, closes the set.
Reading the AC114 Unit 3 grading rubric
Journal entry sets are graded entry by entry for correct accounts, correct amounts and correct sides. Explanations are often a named rubric item in AC114, so leaving them off costs points even when the entry is right. Compound entries for single events earn credit for correct form. The judgment entries, such as unearned revenue or a purchase on a note, are where graders look closely. Date order and consistent titles from the chart matter. Totals that agree show care. An explanation of any judgment call can earn extra credit. Clean layout, so the next unit can post from the page, and APA 7 citations for any rule complete the marks.
Common AC114 Unit 3 mistakes, and how to avoid them
The most frequent journal error is recording an advance payment as revenue. Others split a single event into two entries, losing the connection between its parts. Explanations are left off or say only what the accounts already show. Dividends are debited to an expense. Equipment bought on account is recorded with a cash credit. Titles change from the chart. Dates are entered out of order. If your transaction list is ready but some entries do not balance or you are unsure which account to use, a writer can prepare the set with explanations from your problem.
Get an AC114 Unit 3 example written to your instructions
Upload the Unit 3 transaction list your AC114 section assigned, plus the instructions and rubric that came with it, and the journal records those events using your chart's titles. The set returns in 24-48h. As the first custom sample it is free, and the explanations are written so each entry can be posted in Unit 4 without guessing. The paper above is an original model document written by our desk, not a submitted student paper and not an official Purdue University Global document.
More AC114 papers and BS in Accounting samples
- AC114 Unit 1: What a Record Is For Post
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- AC114 Unit 4: Ledger Posting Exercise
- AC114 Unit 5: Trial Balance Problem
- AC114 Unit 6: Adjusting Entries Worksheet
- AC114 Unit 7: Financial Statement Preparation
- AC114 Unit 8: Closing Entries Problem
- AC114 Unit 9: Seminar Reflection
- AC114 Unit 10: Comprehensive Cycle Problem
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AC114 Unit 3 questions, answered
Do I have to write an explanation under every entry?
In most AC114 sections, yes, and the rubric often names it. The explanation costs a line and does two jobs: it tells the grader which transaction the entry records, and it gives the person posting the entry a way to check intent. A missing explanation can turn a debatable entry into a wrong one simply because the reasoning is invisible.
When should a transaction become a compound entry?
Whenever a single event affects more than two accounts. Buying equipment with part cash and part note payable is one event with three accounts, so it is one entry with a debit and two credits. Breaking it into two entries implies two separate events, which misrepresents what happened and can mislead anyone tracing the purchase later.
Why is the reference column left empty?
Because it records posting, which has not happened yet. When a line is posted in the next unit, the ledger account number is written in that column, confirming the transfer. A filled column on a journal that was never posted would claim work not done. Some sections combine the two units, and then the column is filled in.
Where can I find a free AC114 Unit 3 sample paper?
This page holds a complete AC114 Unit 3 journal entry set recording thirteen June transactions for a window-cleaning corporation, with explanations, compound entries and the advance-payment decision explained.
Why is the truck purchase one entry in the AC114 Unit 3 sample?
Paying $7,000 cash and signing a $15,000 note is one event affecting three accounts, so it is a single compound entry. Splitting it would separate the parts of one transaction.