7. Journal Entry for Receiving Money from a Debtor When adebtor (receivable)pays us, we record the following: Click here for thefull lesson on Recording a Payment from a Debtor. 8. Journal Entry for Expenses Paid in Cash When we have anexpenseand pay thisimmediately, we record the followi...
In this lesson we're going to cover the previous expenses example for our sample business,George's Catering, and we'll learn the full debit and credit cash expense journal entry. Be sure to check your understanding of this journal entry and lesson by taking the quiz in theTest Yourself! s...
Thanks. How do you recommend handling the depreciation entry? I've always done a J/E for that but I don't want it to show up in the Cash Basis expenses. Why not? Cheer Reply VFAKathy Level 3 February 06, 2019 03:39 PM Because de...
What is the double entry for payroll? Each payroll transaction requires a double-entry, which involves a debit to one or more accounts and an equal credit to another account. For example, certain payroll journal entries will include a credit to the cash account and equal debit to various payr...
Double-Entry Bookkeeping Example Let’s say the owner of an advertising company decides to invest $10,000 cash in his business. There are three main steps you have to follow to make the perfect journal entry: First, figure out which accounts are affected. In this transaction, they are the...
Answer to: Crane Company paid $1,925 cash for employee salaries. Prepare the general journal entry to record this transaction. By signing up,...
which is based on the concept that every transaction has an equal and opposite effect in two different places. For example, a purchase increases the company’s assets in terms of the value of the item acquired, but it also creates a debt in terms of the cash that must be paid for the...
Adjusting entries are unrecorded entries that are not there in the general journal. These entries get added at the end of an accounting period before preparingfinancial statementsforaccrued expenses,depreciation, etc. Example:The company paid rent of $2,500 in advance for May during April. Now,...
Accruals are revenues and expenses that have not been received or paid, respectively, and have not yet been recorded through a standard accounting transaction. For instance, an accrued expense may be rent that is paid at the end of the month, even though a firm is able to occupy the space...
when recording an expenses paid by cash we make a journal entry like: Debit - rent expenses $5,000 / Credit - Cash $5,000. General Journal : A book recording all journal entries made for general purpose. General Ledger (G/L): All accounts recorded in a set of books...