Income Tax Payable Journal Entry Income tax payable is an amount of taxes due to be paid within 12 months, which is reported as a current tax liability on a company’s balance sheet. It is important to note that this tax liability is not the same as future income taxes, which are reported as deferred …
Sale Inventory Journal Entry The sale of inventory is an important aspect of business operations, as it allows businesses to reduce stock, increase cash flow, and maximize profits. The sale of inventory can provide a company with tangible benefits, allowing it to reinvest in its operations and increase its potential for growth. By selling excess …
Unearned Service Revenue Journal Entry Unearned service revenue is a type of liability on a balance sheet that represents payments received for services that have yet to be performed. It is recorded as a liability until the service is provided; then, it is reported as revenue on the income statement. Unearned service revenue is beneficial …
Credit Purchase Journal Entry Credit purchase is an important aspect of accounting that involves the exchange of goods and services in return for a promise of future payment. It is a transaction in which goods are received by the buyer and the payment is deferred until a later date. This type of transaction allows the …
Accumulated Depreciation Journal Entry Accumulated depreciation is a term used in accounting to refer to the total amount of assets that have been depreciated over its useful life. It is a contra-asset account, which means that it is recorded on the balance sheet as a negative balance. Accumulated depreciation is used to reduce the value …
Bond Discount Journal Entry A bond discount is a price reduction given to a bond purchaser when the bond’s face value is greater than the price the purchaser pays. This type of discount occurs when the market interest rates are higher than the coupon rate of the bond. Bond discounting is a common way for …
Replenish Petty Cash Fund Journal Entry A petty cash fund is a small amount of money available for handling small expenses and miscellaneous payments. It is often used in business for making payments that are too small to make by check or credit card. It simplifies the reimbursement process and is intended for expenses such …
Journal Entry for Owner Contribution Into Business Business owners often make significant contributions to their business operations. Such contributions can take the form of cash injections, ownership or equity stakes in the business, and other resources. Owner contribution is an important source of capital that can be used to fund the growth and development of …
Paid Creditor On Account Journal Entry A creditor balance is an amount owed by a company or individual to a creditor. A creditor balance is often the result of a loan, credit card transactions, or purchase of goods and services. Paying off liabilities can be beneficial for a company or individual. By paying off creditors, …
Advertising Expense Journal Entry Advertising is an important tool for businesses to attract customers and maintain their market share. It is an essential expense for companies to reach their target customers and increase their sales. Advertising expenses can include costs for media advertisements, promotional materials, and other marketing efforts. Advertising Expense Advertising expense is a …