Transactional Accounting Transactions are recorded in the accounting system in accordance with generally accepted accounting principles. Accounting transactions are financial transactions within a company that are documented in the accounting system. These transactions can include sales, purchases, payments, and receipts.…
Accounting For Utility Expense And Journal Entry Utility Expense Utility expense is a mixed cost that includes both fixed and variable components. It covers electricity, heat, sewer, and water costs, as well as expenses for telephone and internet services that…
Journal Entry Cash Sales Cash sales are a form of transaction where payment is immediately made by the buyer. This eliminates the need for sellers to extend credit to customers, as they are not at risk of bad debt. Payment…
Partial Payment Journal Entry Key Takeaways Partial payment journal entry is used to pay off a portion of an outstanding accounts payable. It involves debiting the accounts payable and crediting cash, with the debited and credited amounts being equal. The…
Paid Cash on Account Journal Entry Key Takeaways Paid Cash on Account is a common accounting practice for business. The journal entry involves a debit accounts payable and a credit cash account. Paying cash on account reduces the amount of…
Bank Loan Journal Entry Key Takeaways Debiting Cash and crediting Loan Payable Accounts are the key journal entries for recording a bank loan. Early loan repayment should be reflected in the journal entry, including the amount paid off and any…
Equity Investment Journal Entry Key Takeaways Initial investment: Debit equity investment account, credit cash account Recording net income: Debit equity investment account, credit investment income account Sale of equity investments: Debit cash account, credit equity investment account Purchase of additional…
Gain on Sale Journal Entry Gain on sale A gain on sale is the realized profit that is recognized when an asset is sold for more than its carrying amount. The carrying amount is the purchase price of the asset…
Amortization of Patent Journal Entry Patent Patent costs are typically capitalized and recorded as an asset on the balance sheet, to be amortized over the useful life of the patent. This is known as a patent journal entry and is…
Asset Purchase Journal Entry Assets Assets are resources or items that are owned or controlled by an individual, organization, or government, and have economic value. They are recorded on a company’s balance sheet and are acquired or created to increase…
Accrued Property Taxes Journal Entry Key Takeaways Accrued property taxes journal entry records taxes owed to local government The entry is made in the period taxes are assessed, not when paid The credit portion represents the amount of taxes owed…
Accruing Payroll Journal Entry Payroll Expense Payroll expenses are the amounts earned by employees during the period, regardless of when they are actually paid. This includes salaries and wages as well as the cost of payroll taxes such as Medicare…