Specifies the duplicate in depreciation book that is associated with the future expense journal. FA Error Entry No. Specifies the fixed asset error entry number that is associated with the future expense journal. On the Home tab, in the Process group, choose Post. The amount entered in the Am...
Here is an additional list of the most common business transactions and the journal entry examples to go with them.Sale Entry Depreciation Expense Entry Accumulated Depreciation Entry Accrued Expense EntryCommon Journal Entry QuestionsWhat is a manual Journal Entry?
How to Record Adjusting Entries Recording AJEs is quite simple. Here are the three main steps to record an adjusting journal entry: Determine current account balance Determine what current balance should be Record adjusting entry These adjustments are then made in journals and carried over to the ...
The first year, the depreciation on the building journal entry is a $6,250 credit to Accumulated Depreciation and the same size debit to Depreciation Expense. Accumulated Depreciation on a building is a contra asset account: You include it next to the asset account to reflect the real value ...
period, the journal of all the financial activity is tallied into a trial balance to make sure the books are balanced. However, business is a fluid activity and the transactions recorded may not reflect all the revenues and expenses of the period and that means there need to be adjusting ...
2. Accrued Expense An accrued expense is the expense that one has incurred during an accounting period but has not paid yet. Suppose a business firm has to pay wages to the employees at the end of an accounting period, an adjusting journal entry has to be made by debiting the wages expe...
You can do this by debiting each individual expense account where depreciation is a factor such as automobiles and computer equipment. An adjusting journal entry is made at the end of an accounting period to take care of anything that was unresolved during that accounting period. An example is...
amortizes this discount equally over the life of the bond. For the bond interest expense journal entry, debit interest expense by the sum of the interest payment and the discount amortization, credit cash by the interest payment amount and credit discount on bonds payable by the amortization ...
The journal entry to record an impairment is a debit to a loss, or expense, account and a credit to the related asset. Acontra assetimpairment account, which holds a balance opposite to the associated asset account, may be used for the credit in order to maintain thehistorical costof the...
Finally, the calculation of each can be different. This is especially true when comparing depreciation to the amortization of a loan. Intangible assets are often amortized over their useful life using the straight-line method, while fixed assets often use a much more broad set of calculation meth...