journal entry reversing vs non


B

bailee424

i am needing assistance with a journal entry that i need to do.


example I need to take all of the expense in the month of December but
the payout will be over a period of a few months. How will the journal
entry be posted to get all of the expense in December
 
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C

Chris Gunn

i am needing assistance with a journal entry that i need to do.


example I need to take all of the expense in the month of December but
the payout will be over a period of a few months. How will the journal
entry be posted to get all of the expense in December
Howdy,

I think you will find yourself in some serious trouble if the IRS audits
your books.

You will probably not get any other answers since it's kinda illegal to
claim money was transferred before it actually happened.

Chris
 
C

Chris Gunn

i am needing assistance with a journal entry that i need to do.


example I need to take all of the expense in the month of December but
the payout will be over a period of a few months. How will the journal
entry be posted to get all of the expense in December
Howdy,

I think you will find yourself in some serious trouble if the IRS audits
your books.

You will probably not get any other answers since it's kinda illegal to
claim money was transferred before it actually happened.

Chris
 
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H

HSalim

Chris,
Your assumption may be incorrect.
You are assuming that the poster uses Cash-basis accounting, which may not
be the case.
Any business entity that uses the accrual method must in fact make a
provision for these cases.
They must account for expenses incurred, even if they have not not been
invoiced for it by the close of the year (or Quarter...)

To the original poster:
There are usually two ways to do this:
1. If you hve the invoice from the vendor, treat it like any other A/P
invoice - debit expenses, credit A/P
2. if you have not received the invoice from your vendor you may still
provide for it
debit expenses, credit a liability account.

I suppose you will be making similar adjustments - a reverse provision for
prepaid expenses and unearned income.

HS



: On Thu, 05 Jan 2006 09:00:27 -0700, "(e-mail address removed)"
:
: >i am needing assistance with a journal entry that i need to do.
: >
: >
: >example I need to take all of the expense in the month of December but
: >the payout will be over a period of a few months. How will the journal
: >entry be posted to get all of the expense in December
:
: Howdy,
:
: I think you will find yourself in some serious trouble if the IRS audits
: your books.
:
: You will probably not get any other answers since it's kinda illegal to
: claim money was transferred before it actually happened.
:
: Chris
:
 

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