Warranty Expense Journal Entry Warranty expense is the cost incurred by a vendor or manufacturer to repair or replace a product, that is deemed defective, during the established warranty period. This cost is reported against revenue according to the matching principle so that expenses are reported at the same time as related revenues. The warranty …
Bank Service Charge Journal Entry Bank service charges are fees charged by banks for providing services related to the management of customers’ accounts. The charges include both those that are explicitly detailed in the contract or terms of service, as well as those that are hidden or not readily disclosed. These are fees that banks …
Accrued Liabilities Journal Entry Liabilities are the obligations of an entity resulting from past transactions or events. Accrued liabilities are a type of liability that is incurred but not yet paid. This type of liability is recorded in an entity’s financial statements and can include items such as wages, salaries, interest, taxes, and other expenses.. …
Interest Expense Journal Entry Interest expense is the cost of money borrowed from lenders such as banks, credit unions, or other financial institutions. It is also used to refer to the amount of interest paid by a company on its outstanding debt obligations. Interest expense can have a significant impact on a company’s financial performance. …
Accrued Wages Journal Entry Wages expense is a type of variable cost incurred by companies to pay hourly employees, payroll taxes, and benefits. It is a line item recorded in the expense portion of the income statement. Companies typically use accrued wages to ensure that all employees are paid the correct amount for their work. …
Income Tax Expense Journal Entry Income tax expenses refer to the amount of money that is paid to the government in the form of taxes. It is primarily computed based on the income of an individual or an organization. Income tax expenses can be divided into two categories: deductible expenses and nondeductible expenses. Furthermore, there …
Inventory Write Down Journal Entry Inventory write-down is a process that entails lowering the value of a company’s inventory to its current market value. This process is essential for businesses that carry inventory and for those that follow generally accepted accounting principles (GAAP). By writing down inventory, companies can better reflect the true value of …
Loan Payment Journal Entry A loan payment is a financial obligation made by a borrower to a lender, usually in regular installments over a specified period of time. In general, loan payments are the responsibility of the borrower, and usually consists of both principal and interest on the amount borrowed. Loan Payable is an amount …
Stock Dividend Journal Entry A stock dividend is a type of dividend paid out to shareholders in the form of additional shares in the company rather than cash. The stock dividend is issued from the company’s retained earnings and is usually a fractional number of shares. A journal entry is required to record the issuance …
Utilities Expense Journal Entry Utilities expenses refer to the costs associated with operating and maintaining utilities, such as electricity, water, and gas, in a business. It is a major component of a business operating expenses and should be closely monitored to ensure that costs are kept under control. What are Utilities Expenses? Utilities expenses are …