Accountingrowth_AdminCash Received In Advance Journal Entry If you receive cash in advance, you’ll need to make a journal entry to record it. Cash in advance is a payment term in trade agreements where the buyer must pay the seller in cash before receiving the shipment. This is often required before the shipment has even been …
Journal Entry For Revenue Accounting for Revenue Accounting for revenue involves recording and tracking the revenue generated by a business over a certain period of time. Revenue is the total money made from the sale of goods or services or other activities such as memberships. It is typically calculated by multiplying the average unit price …
Capital Distribution Journal Entry Capital distribution is a type of distribution that is used to share the entity’s earnings among its members. This distribution is usually paid by the Membership Interest and Stock Purchase Agreement. A capital distribution can be of two types, cash and non-cash. Cash distribution is the simplest form of distribution where …
Accrued Salary Expense Journal Entry Salary Expense Salary expense is the cost of non-hourly labor for a business and is typically divided into different departments. Examples of department-specific salary expense accounts include accounting and engineering departments. This expense is the fixed pay earned by employees and is a necessary expense for a business to remain …
Interest Receivable Journal Entry Interest Receivable Interest receivables are assets that arise when a company is owed interest but the interest has not yet been paid. These receivables are usually expected to be paid within the same year and are therefore considered a current asset. If there is no expectation of payment within one year, …
Journal Entry For Purchase of Inventory Purchase of Inventory The purchase of inventory is recorded as a debit in the inventory account and a credit in the accounts payable account. This journal entry is used to record the cost of goods purchased during an accounting period, and it is important for estimating cash needs for …
Declared and Paid Dividends Journal Entry Dividends are a way for companies to reward their shareholders for investing in their equity. They are portions of the company’s profits that are distributed to shareholders on a regular basis, usually quarterly or annually. The board of directors decides how much of the earnings to pay out as …
Bonus Accrual Journal Entry A performance bonus is a form of extra payment that employers offer to their employees as an incentive for achieving certain goals. Unlike regular salary or wages, a performance bonus is not guaranteed and depends on the results of the employee’s work. A performance bonus is usually given after a performance …
Bonds Issued Journal Entry Bonds are a type of corporate debt that companies issue to raise funds from investors. Bonds are traded in the capital market, where buyers and sellers determine their prices and yields. Bonds have some features that distinguish them from other financial instruments, such as interest rate, maturity date, and credit risk. …
Reissuance of Treasury Stock Journal Entry A company may buy back its own shares, also known as treasury stock. Treasury stock is a contra equity account recorded in the shareholders’ equity section of the balance sheet. It reduces the total number of outstanding shares on the open market and the shareholders’ equity by the amount …