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Do you decrease a liability account with credit?
No, a liability account is decreased with a debit, not a credit. In accounting, liabilities represent obligations, and to reduce them, you would record a debit entry. Conversely, credits increase liability accounts. Therefore, to decrease a liability, you would use a debit entry.
What is the entry of unpaid rent for the current month?
The entry for unpaid rent for the current month typically involves debiting the Rent Expense account and crediting the Accounts Payable or Rent Payable account. This reflects the expense incurred for the month while recognizing the liability to pay the rent. The journal entry would look like this: Debit Rent Expense and Credit Rent Payable for the amount of unpaid rent. This ensures that both the expense and the liability are accurately recorded in the financial statements.
What is accounting double entry when a company have to pay withholding tax on debenture interest paid?
In accounting, the double-entry system requires that every financial transaction affects at least two accounts. When a company pays withholding tax on debenture interest, it would record the interest expense in the interest expense account and create a liability for the withholding tax in the liability account. The payment of the tax reduces the cash account, completing the double-entry with a debit to the tax liability and a credit to cash. This ensures the accounting equation remains balanced.
What is the accounting entry for California franchise tax?
The accounting entry for California franchise tax typically involves debiting the franchise tax expense account and crediting the cash or accounts payable account, depending on whether the tax is paid immediately or recorded as a liability. For example, if you are paying the tax of $1,000, the entry would be: Debit Franchise Tax Expense $1,000 and Credit Cash $1,000. If the tax is recorded as a liability instead, you would credit Accounts Payable instead of Cash.
For the modified accrual basis of accounting what would be the entry to record the purchase of an building?
For the modified accrual basis of accounting what would be the entry to record the purchase of an building?
Accounting where would you put a bad debt entry?
In the Journal Proper
What is accounting entry for directors fees?
The accounting entry for directors' fees typically involves recording an expense and a liability. When the fees are incurred, you would debit the Directors' Fees Expense account and credit the Accrued Liabilities or Accounts Payable account. This reflects the expense recognized in the income statement while acknowledging the obligation to pay the directors. Upon payment, you would then debit the Accrued Liabilities or Accounts Payable and credit Cash or Bank.
How you compare unpaid income tax with income tax expense?
If I understand what you are asking, your question is in regards to C corporations or LLCs which have elected to be taxed as C corporations, and which use the accrual method of accounting. The income tax expense for the period would be listed as an expense on the income statement. The amount of unpaid income tax would be listed as a liability on the balance sheet as income tax payable (or some similar name).
How do you decrease an asset account?
To decrease an asset account, you can either record a credit entry or reduce the asset's value through a transaction. For instance, selling the asset, writing it off, or recognizing depreciation will decrease the asset account balance. In double-entry accounting, the corresponding entry would typically increase a liability or equity account or decrease another asset account.
A newspaper ad submitted and published this week with the agreement to pay for it next week How would that be reflected in an accounting journal entry?
In the accounting journal, this transaction would be recorded as a liability in the current week when the newspaper ad was submitted and published. It would be debited to Advertising Expense and credited to Accounts Payable. The payment would then be recorded in the following week by debiting Accounts Payable and crediting Cash.
What are the accounting entries for free shares?
You would make the journal entry the same way you would make it if they were not free shares. You would use the estimated or known value of the free shares to make the entry.
If you have over accrued a liability on the books Which would be an appropriate entry to remedy the situation?
debit cash, credit expense
