A business records an accounting entry for a barter transaction. The transaction involves the business exchanging goods in return for the provision of advertising services.
Paid Cash on Account Journal Entry
A paid cash on account journal entry is needed when a business has paid cash to a supplier and the amount is not allocated to a particular supplier invoice or the supplier has not yet sent an invoice.
A physical count of inventory reveals inventory shrinkage of 1,470. The journal entry to record this reduces the inventory to the physical count using an inventory shrinkage expense account.
Certificate of Deposit in Accounting
A business pays cash to purchase a certificate of deposit. The certificate matures after a term of 60 days and has a fixed annual interest rate of 2.5%. The journal entries to show the purchase and maturity are described.
Accounting for Funds held in Escrow
A business pays cash into an escrow account held by a third party in respect of a property transaction. The amount remains the property of the business until the transaction is complete and shows as a current asset in the balance sheet of the business.
Opening Entry In Accounting
An opening journal entry is used to post the opening assets, liabilities, and equity of a business when it first establishes a double entry bookkeeping system.
Property Purchase Deposit Journal Entry
A business pays a cash deposit to secure the acquisition of a property. At the end of the accounting period the contract is not completely satisfied and the deposit is held on the balance sheet as a current asset. Subsequent to the year end the property purchase is completed and the deposit is used in part settlement for the purchase.
Purchase Allowance Journal Entry
A business receives a purchase allowance from a supplier in respect of faulty goods. The supplier issues a credit note for 1,500 and the amount is posted to the purchase allowance contra expense account.
Goods Given as Charity Journal Entry
A business records an bookkeeping entry for goods given to charity. Since the goods are given free of charge they have no sales value and cannot be recorded as sales and therefore the cost of goods needs to be removed from the purchases account and transferred to a charitable expenses account.
Goods Distributed as Free Samples
A business records an accounting entry for free samples given to customers. Since the free promotional samples have no sales value they cannot be recorded as sales and therefore the cost of the samples needs to be removed from the purchases account and transferred to a promotional expenses account.
Cash Deposit Bank Journal Entry
A business maintains a checking account with a financial institution to allow it to make day to day deposits and withdrawals of cash. A cash deposit in bank journal entry is used to record the transfer of the physical cash held by the business to the bank account.
Petty Cash Replenishment
When a business maintains an imprest system of petty cash it is necessary to replenish the fund at the end of an accounting period. A journal entry is used to record the petty cash expenditure incurred during the period and to reflect the cash used for replenishment.