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It wouldn't be a negative.....if you're looking at an annual filing and it shows a positive interest expense line and a negative interest income line....it doesn't mean that the interest income is actually negative....it offsets the interest expense...since all positive amounts are actually being deducted from Net Sales
What else can I help you with?
Is interest income is debit or credit?
Interest income would be a credit entry, as it increases a form of revenue. If the interest income is received in cash, the entry would be: Dr Cash Cr Interest income If the income was not yet received but will be at a later date, the entry would be: Dr Interest receivable Cr Interest income In either case, the Interest income account would be credited.
What is the journal entry for interest income?
If you actually received the cash then the entry would be Cash Interest Revenue if you haven't yet received cash and are recognizing the interest income.. Interest Receivable Interest Revenue
How do you enter the double entry for interest receivable?
To enter the double entry for interest receivable, you would debit the Interest Receivable account to recognize the income that is owed to you but not yet received. Simultaneously, you would credit the Interest Income account to reflect the earned revenue on your income statement. This ensures that both the asset and income are accurately recorded in the accounting system.
What is a tax levied on net personal or business income?
That would be an income tax.
Does interest revenue have a normal debit balance?
No, Interest Revenue is income and would normally have a credit balance.
Is interest income is debit or credit?
Interest income would be a credit entry, as it increases a form of revenue. If the interest income is received in cash, the entry would be: Dr Cash Cr Interest income If the income was not yet received but will be at a later date, the entry would be: Dr Interest receivable Cr Interest income In either case, the Interest income account would be credited.
Would personal income disposable income or discretionary income be of the greatest interest to marketers?
Discretionary income, not personal income or disposable income, would be the greatest interest to marketers.
Does interest payable go on an income statement?
interest expense is deducted from EBITA (Earnings before interest and tax). This is in the income statement. Note that interest expense is NOT the monthly or yearly mortgage being paid, birt the fraction of it that is just interest.
Is it possible to have a negative interest rate?
No because that would mean the lender was paying someone to borrow from them and they couldn't stay in business like that.
What is the journal entry for interest income?
If you actually received the cash then the entry would be Cash Interest Revenue if you haven't yet received cash and are recognizing the interest income.. Interest Receivable Interest Revenue
How do you enter the double entry for interest receivable?
To enter the double entry for interest receivable, you would debit the Interest Receivable account to recognize the income that is owed to you but not yet received. Simultaneously, you would credit the Interest Income account to reflect the earned revenue on your income statement. This ensures that both the asset and income are accurately recorded in the accounting system.
How much taxes do you pay on the interest from a 12 month CD?
If your federal marginal income tax rate is 15 % and you have 1000 of interest income for the year on the 12 month CD the federal income tax amount would be 150 of federal income tax on the 1000 of interest income.
What is a tax levied on net personal or business income?
That would be an income tax.
Is interest income earned in the US subject to withholding tax when paid to a foreign person?
Yes it is possible that the payer of the interest income would be required to withhold some taxes from the source of the interest income that is being paid to a taxpayer.
Are pension and IRA payments considered earned income?
Definitions: Earned income - is received from services performed. For example, wages, commisions, tips, and business income. Unearned income - is generally income that the does meet the definition of earned income. Examples include interest, dividends, rents, and royalties. Pensions and IRA distributions would fall into this category.
Can the nominal interest rate ever be negative?
No, nominal interest can never be a negative rate. If such an event occurred it would involve customers paying the banking, at which point it would be referred to as a fee rather than interest.
Can you claim school loans on income tax?
Well, loans if anything would be income (but it isn't). You mean the interest on them...NO. Interest on personal use loans is not deductible.
