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permanent account
Not right away. When you record unearned fees or revenue it only hits the balance sheet. Ex: Debit- Cash or AR (Asset Account) Credit- Unearned Revenue (Liability) It is a liability until the revenue is earned in which case you then Debit: Unearned Revenue Credit: Revenue/Sales Account (finally and income statement account!)
Yes, there are fees for HSBC accounts. Depending upon which type of account you have there are maintence fees and account service fees. Their montly account fees range from $2-$3 a month.
Income is an income statement account and shown in income statement and not a balance sheet account.
Any account on the balance sheet is a permanent account - 'Cash', 'Accounts Receivable', 'Accounts Payable'. Income and expense accounts are temporary accounts because they are closed at the end of an accounting period. Examples are: 'Service Revenue', 'Office Expense', and, my personal favourite, 'Meetings and Entertainment Expense'.
TEMPORARY ACCOUNT
Fee income is the income that is generated off products such as NSF or Overdrafts, account service charges, etc. These fees are generally pure profit and very lucrative to banks
Yes it is. Permanent accounts are balance sheet accounts which do not close at the end of the accounting year, as opposed to income statement account balances which are removed an added to retained earnings. Another words income statement accounts are measured for a certain period of time whereas balance sheet accounts carry on to the following years.
Not right away. When you record unearned fees or revenue it only hits the balance sheet. Ex: Debit- Cash or AR (Asset Account) Credit- Unearned Revenue (Liability) It is a liability until the revenue is earned in which case you then Debit: Unearned Revenue Credit: Revenue/Sales Account (finally and income statement account!)
permanent account
It is considered an expense on the Income Statement, which should be allocated to "Professional Fees" or "Accounting and Legal Fees"
a good example would be rent income that has been received in advance another example would be membership fees etc... thr income received in advance is seen as a liability because it is money that does not correlate to that specific accounting or business year but rather for one that is still to come. the income account will then be credited to the income received in advance account and the income received in advance will be debited to the income account such as rent. When the time period for which the money was received comes, then a reversal takes place which is the same only differing by now debiting the income account to income received in advance account and vice versa.
Yes, there are fees for HSBC accounts. Depending upon which type of account you have there are maintence fees and account service fees. Their montly account fees range from $2-$3 a month.
Income is an income statement account and shown in income statement and not a balance sheet account.
Any account on the balance sheet is a permanent account - 'Cash', 'Accounts Receivable', 'Accounts Payable'. Income and expense accounts are temporary accounts because they are closed at the end of an accounting period. Examples are: 'Service Revenue', 'Office Expense', and, my personal favourite, 'Meetings and Entertainment Expense'.
income statement
Fees Earned is an Income and whenever an income increases its credited! So that makes it a credit.