Journal Entry for Cash Sales With Discount Cash Sale A cash sale is an exchange of goods for money that happens simultaneously. It is a common type of transaction, in which customers pay for goods and services in cash. In…
Debt Issuance Fees Journal Entry Debt Issuance Fees The costs associated with debt issuance are typically paid to third parties as a part of the process. These costs include registration fees, legal fees, printing costs, underwriting costs, and other expenses.…
Cash Refund Journal Entry Cash Refund A cash refund is a repayment of funds from the original payee to the original payer. It can be caused by a number of reasons, such as returned goods, overbilling, or excess tax payment.…
Bonus Depreciation Journal Entry Bonus Depreciation Bonus depreciation allows businesses to deduct a large percentage of the cost of eligible purchases in the year they are acquired. It was created by the IRS as an incentive for small business investments…
Accelerated Depreciation Journal Entry Accelerated Depreciation Accelerated depreciation is a method of accounting for fixed assets that allows for the recognition of depreciation expenses at a faster rate in the earlier years of a fixed asset’s useful life. This has…
Capitalizing R&D Expenses Journal Entry Capitalizing R&D expenses Capitalizing research and development (R&D) expenses is a common accounting practice that allows for a better comparison of companies within the same industry. R&D spending can vary significantly from year to year,…
Biological Assets Journal Entry Biological Assets Biological assets are living assets that have a value assigned to them according to International Accounting Standard 41. These assets are typically categorized in the balance sheets and are usually measured at fair value…
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…