Journal Entry for Provident Fund Provident Fund Provident funds are government-administered retirement savings schemes that require contributions from both employers and employees. The government sets minimum and maximum contribution levels, and the fund is designed to provide financial support to…
Allowance for Doubtful Accounts Journal Entry Allowance for Doubtful Accounts The allowance for doubtful accounts is an accounting provision that anticipates credit sales where customers may not be able to pay their obligations. It is a reserve on the balance…
Journal Entry for Franchise Tax Key Takeaways Franchise tax is a state-imposed tax on businesses for the right to operate within the state. The journal entry for franchise tax includes a debit to the franchise expense account and a credit…
Journal Entry for Estimated Tax Payments Key Takeaways Income tax liability is recorded as a debit and the cash account is credited when making estimated tax payments. The accrual accounting method is used for tax reporting to ensure the accuracy…
Journal Entry for Traveling Expenses Paid in Advance Key Takeaways Accurate documentation of receipts and expenses is crucial for successful reimbursement. A journal entry is used to track expenses incurred during a trip, with expenses paid in advance recorded through…
Accounting for Security Deposits Key Takeaways Security deposits serve as a form of financial protection for landlords and are used to mitigate any damage caused by tenants. Security deposits cover damages, losses, or theft that may occur during a tenant’s…
Is Common Stock An Asset, Liability, Or Equity? Key Takeaways Common stock represents ownership in a corporation and is the most common form of equity investment. Common stock is not considered an asset or liability and is categorized as equity…
Owner Withdrawal Owner withdrawals involve the removal of cash or assets from a business entity by an owner for their own personal use. This can occur in either a partnership or a sole proprietorship. C corporations classify these payments as…
Income Tax Payment Journal Entry Tax expenses are the amounts of taxes owed to a taxing authority. Income tax expense is the amount of income tax that a business or individual owes to the government. It is calculated by multiplying…
Journal Entry for Started Business with Capital Starting a business requires capital to cover various expenses involved in the process. Startup capital is defined as the funds or resources that entrepreneurs need to cover these initial costs. Here are some…
Capital Contribution Journal Entry Capital is a broad term that can refer to any asset that can be used to produce goods or services or to generate income. In the context of a business, capital can be anything from cash and…
Operating Lease Journal Entry A lease is an agreement between two parties, the lessor (the owner of the asset) and the lessee (the user of the asset), where the lessor agrees to allow the lessee to use the asset for…