Advanced and deferred payments

Which T-accounts are affected when a client pays rents in advance?

Which accounting statement is affected is affected by this transaction- P$L or Balance sheet?


Hello,

Thank you for your question.

Prepaid rent is a prepaid expense which is a current asset account.

The T accounts affected when a client pays rent in advance are:

DEBIT Prepaid Rent
CREDT Cash

The financial statement affected by this transaction is the Balance Sheet as cash and prepaid rent are both asset accounts.

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Billing a Client For an Expense That You Rec'd Payment For

by Britt Crowell
(Savannah, GA)

I am keeping books for a property management company. We bill our other properties for labor (repair and maintenance) preformed by our contractors. However when I am billing them for the supplies that the contractors bill us for should I post it has an expense? Even though we are receiving payments for these expenses?

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Bond Payments

by Sonja
(Pretoria, South Africa)

Do I capture a bond payment against Buildings @ cost or do I capture it as a expense?

Regards,
Sonja

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Bonus Payment

by Larry Cox
(Tampa Florida)

Can I give cash bonuses to hourly employees and then issue a 1099 for the amount received?

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Booking Paid Canadian Provincial Tax

by Keith
(Alabama)

I have a vendor in Canada that has charged me provincial tax. I am a re-seller and have not charged or booked this tax back to my customer yet. I'm wondering if the correct way to deal with this is to create a separate invoice that reflects a "processing or handling fee" to recoup the dollars I paid and did not bill back yet?

I, of course, would not charge tax on this bill to my customer. I have the same situation with a service provider who billed Canadian provincial tax. Any help with an answer or a possible source for an answer will be much appreciated.

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CC payments

by James Waite
(Flint, Michigan)

Hi, I foolishly used my business CC for "non business" purchases as well as business purchases. How do I determine what portion of my monthly payment qualifies as a business expense?

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Credit Card Payment Date Paid

by Barbara
(Island Lake, IL USA)

What is the correct date to use when paying with a credit card as it pertains to paid expenses and items? Is the item "paid" when the credit card is charged by the vendor or when your company actually pays the credit card bill. Which "month" would the expense be in?
I'm using QB PRO.

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Entering Customer Payment With Deduction For Money We Owe Them

by Rita
(US)

I have a customer who is also a vendor. When they make a payment as customer and deduct the amount we owe them as vendor (customer is vendor also), How do I post it?

Both the customer and vendor invoices have to be affected and also the general ledger accounts but not the bank account. In the past I credited one of the invoices but this throws off the income statement.

It cannot affect the total sales or the total purchases because these are legitimate so i cannot credit one or the other.

Can you help me? I have been dealing with this for a long time and cannot seem to get an answer.

Thank you.

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How to Enter Income Tax Remittance Payments

by Henk
(Canada)

Taxes

Taxes

If I'm not mistaken, some sites tell you to set up a so called 'Contra' account for this purpose. Yet, when creating this 'Contra' asset account, the amount is still reflected as part of your total Assets, even though they have been paid out.

Other sites have indicated to set these quarterly remittances to the government in the Expenses area. To me, this is incorrect as these payments are NOT expenses, which are deducted from income to yield income tax payable.

For now, I have entered these payments under Owners Withdrawals, in Liabilities.
Please let me know of the proper way to enter these remittances.

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Invoices Presented For Payment Over 5 Years Old

I have received an invoice dated 2010 for services rendered in 2006 - 2010. Is there a bookkeeping standard for how long a vendor can wait to invoice the client?

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Insurance Claims Payment Data Entry

by Sebastian
(Virginia)

Where do I enter insurance claims payments into the company books?

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Law Suit Settlemnet Payment

by Ayhan
(FL)

Which COA can we use for a payment made for a law suit settlement?

Thanks.

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Line of Credit Repayment

I am paying on my line of credit, and want to know what I would characterize payment on the principal as in my ledger?

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Payable To Expense

by Linda Wagner
(Brownsburg, IN, USA)

When I book income, I will credit my sales and sales tax payable and debit cash. How do I pay the tax liability and recognize that expense?

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Paying an Invoice

Should original invoice from a service provider be included with payment or is a copy okay?

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Paying Business Expenses with personal Credit Card

I started a business before I had a business checking account and purchased gasoline for my truck using my
personal checking account. I am using the actual method instead of the mileage method for tax purposes.

Is it correct to debit gasoline expense and credit
owners contribution( an equity account)for this transaction?

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Paying Estimated Taxes

As a freelancer, do I wait to receive a 1099 before making quarterly payments to the IRS? Also, do I include personal income tax payment with business or should I file that separately? I used an EIN for my self employment stint.

Thank you


Hi,

Thank you for your question.

You do not need to wait for a 1099 in order to start making quarterly tax payments to the IRS. You can estimate how much you think you will make on your 1099 and pay estimated quarterlies based on that.

Your personal income tax and self-employment tax will be totalled together on your Federal 1040, so you can include your personal income tax payment with business. Estimate all of your income together to base your quarterly payments off of.

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Payment For Good Received By Company

by William
(South Carolina)

My sister payed for tools bought for my company with her own money. i payed her back by withdrawing a 100 dollars from my checking account. how would account for this in the books.

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Proper Recording of Payment To Company

I work for a contractor. The owner, outside of the business, also provides services unrelated to our company, to a certain customer.

Usually, this customer pays the owner for his personal work with a check made out to the owner personally, which is ideal.

However, this time, the customer submitted a check paid to the order of the company for their outstanding invoice AND the amount that was owed personally to the owner.

I recorded the amount of the deposit that was due to the the company as I normally would. But what do I record the balance of the deposit to that was due to the owner?

Should that money be recorded in our GL Liability account called: Due to Owner?

If not, then what type of GL account should I record this money to? And then, how should I record it in a journal entry to balance it?

And then when I cut a check to the owner for the amount that is due to him, do I code the payment from the company as GL Liability: Due To Owner as well?

Thank you!

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Property Tax Payment

by ZULEICA
(KISSIMMEE FL )

How do I pay the taxes of my condo by internet?

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Stop Payment

by Krishnendu
(West Bengal)

What is the journal entry should be made for stop payment of a cheque by order of bank?

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Vendor Invoiced But Now Does Not Want Payment And Checks Have Been Created

by Kim
(Tempe AZ)

We are a listing agent for REO properties. We manage the cost of upkeeping the home till it sells and the cost we incur is reimbursed from the asset company. Our maintance guy inv'd us and does not want payment from us. He clams he found Jesus. How do account for the checks and the money that was reimbursed to us?

TB

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Vendor Payments - New Business

by Angela
(Atlanta, GA )

A few of our invoices were paid by individuals as a loan. They did not put the funds into our bank account but sent the payments directly to the vendor. The payables are on each vendor account. How do I credit the payment to the particular vendor although we didn't pay them ourselves. We did reimburse the individuals from our checking account.

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Where To Post Unemployment Insurance Payments To Texas Work Force Commission

by Suman Thomas
(Houstonq)

Where to post Unemployment insurance payments, does it go to payroll expense?

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