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.
Tag: Examples
Paid Cash on Account Journal Entry
Inventory Shrinkage
Certificate of Deposit in Accounting
Accounting for Funds held in Escrow
Opening Entry In Accounting
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
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.