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What would the journal entry be if a company incurred an expense?
Wiki User
∙ 16y ago
There may be more than one way to record an expense. The easiest journal to think about is when you've used cash to pay for the expense. In that case, you would debit an expense account and credit cash. But, if you've received the benefit of an expense but have not yet paid for it the debit would still be the expense account but the credit would be a liability account. Of course, there are times when cash flows but no expense is recognized such as investments in property, plant and equipment. After that expenditure is made you would recognize periodic expenses in the form of depreciation. That would be a debit to depreciation expense and a credit to accumulated depreciation.
Wiki User
∙ 16y ago
Wiki User
∙ 9y agodebit expenses
Credit cash
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Accrued expenses are expenses that have been paid but not incurred?
Accrued expenses are paid after being put on the company's financial books. Every entry that is adjusted for accrued expenses is listed as a debit on an expense account, increased expenses on an income statement, net income reduction, credit on a payable account, and increased liability on the company's balance sheet.
How do you prepare the adjusting journal entry to record bad debt expense?
The bad debt is recorded against the asset, which is the debtors control account, or account recievable, for example company A is owed $1000 by company B, during the year, company B approaches company A and states that it is going out of business and can only pay them $600, therefore the bad debt is $400 Credit the debtors account of company b with $400 and debit bad debt expense $400
Are wages expenses an asset or liability?
Neither, it is an expense, a negative entry in the company´s Profit and Loss, thus decreasing its Equity position.
Why a narrative should be shown as part of a journal entry?
It is impossible to remember the reason for every entry & the entries in the journal sometimes involve "out of the ordinary" transactions.
How to pass journal entry if company take t he loan from bank?
debit cash . bankcredit loan from bank
A sole proprietor has incurred as expense out of his personal accont - what will be the journal entry?
The expense account will be debited and capital will be credited by the same ammount
What is the journal entry for unsubscribe capital stock?
There is no journal entry for unsubscribed capital as this is that portion of capital which is company has offered to shareholders for purchase but nobody has purchased that capital so no transaction incurred and hence no journal entry required.
What is the Journal Entry if a company paid cash for this months utilities?
Debit Utilities expense Credit Cash
WHAT IS THE JOURNAL ENTRY FOR SALES DISCOUNTS?
expense
An adjusting entry would adjust an expense account so the expense is reported when incurred?
True
Journal entry to record an accrued vacation expense?
Though I have never heard the term "accrued vacation expense" nor have I ever heard of a "vacation" being a business expense, however, the journal entry would be handled like most "payables". So if your company uses the account of Accrued Vacation Expense, the journal entry should be something like....Vacation Expense (debit) $XXXAccrued Vacation Expense (credit) $XXXOnce the amount is paid, a debit would be recorded in the Accrued Vacation Expense account and a credit to Cash, to remove it from the books and note that the debt (or expense) has been met.
What is the journal entry to reverse an accrued expense?
Payable Account XXX Expense Account XXX
What journal entry accrues interest expense?
DR - Interest Expense CR - Interest Payable
What is journal entry for expense payment?
what is the entry for an excess payment from customer
What is the journal entry for legal expenses?
To record legal expenses in a journal entry, you would debit the Legal Expenses account and credit either Cash or Accounts Payable, depending on whether the expense was paid immediately or is still outstanding. This entry helps to accurately track and report legal costs incurred by the business.
How do you record a journal entry to reverse the expense booked?
debit cash / bank / accounts payablecredit expense account
Is a compound entry in the general journal is made to close expense accounts?
A compound entry in a general journal is any entry that has more than one debit or credit value. A compound entry is used to close the expense accounts because you will need to credit all of the expense accounts, then debit either the Income Summary, or the Capital itself.
