![]() 201 – John Smith Accrued Payroll – Debit for $500.102 – Cash In Bank Payroll Account – Credit for $500.When it’s payroll time, the $500 debit in my New Sales Commission Ford Flex stays and to clear out the payroll entry the journal entry is simply: 201 – John Smith Accrued Payroll – Credit for $500.301 – New Sales Commission on Ford Flex – Debit for $500. ![]() What if I sold that Ford Flex and had to pay an employee commission on my profit of $2,000? Here’s what that would look like: More Complicated Examples of Journal Entries Sales accounts are always credited and cost of sales are always debited, even if it seems like they should be the other way around. The tricky part here? Look closer at the example. A debit to the cash I received and a credit to the inventory handles this part of the journal entry. I received $10,000 to sell the Ford Flex and I also must take it out of my inventory so my accounting system knows it is sold. In financial accounting, the difference between my sale account and cost of sale account, or $2,000, is my profit and that automatically rolls into my gross profit (not net profit) account. 131 – Inventory Ford Flex – Credit for $8,000.501 – Cost of Sales Account Ford Flex – Debit for $8,000.401 – Sales Account Ford Flex – Credit for $10,000.Keep in mind that when making journal entries, your debits and credits must be equal. Let’s take the example of a Ford Flex and see what our journal would look like if we sold one. A typical chart of accounts will list sale accounts as three digit numbers in the 400 digit range where cost of sale accounts are in the 500 three digit range.įor example, a sales account for a Ford Flex might be 401, and the cost of sale account might be 501. My dealership sells many types of Ford vehicles and each one of those vehicles has a sales account and a cost account. Since I’m in the car dealership business, I can use my products to better explain job costing journal entries. This is not so in businesses that sell more than one product or service or more than one type of product or service. If you sell one widget and one widget only, you pretty much know how much it costs for you to buy it and what price to set so you make a profit. All 90-day justification and expense policy exception request forms for all types of reimbursements will need school approval from the Dean’s Office before submitting for payment.Why Job Costing Journal Entries Are Needed If the expense is over 90 days old and/or requires an expense policy exception request, please complete the applicable justification form and include it with the reimbursement documentation. Using the Expense Policy Exception Request Form.Expense Policy Exception Request Form (for transactions that violate policy).Travel, Entertainment & Courtesy Policy.myHR Learn’s “Using the Visitor’s Expense Report Job Aid”.For more information on using the form and the reimbursement process, please refer to the following: This includes guest lecturers or scientists, consultants, non-employee students, temporary employees and human research subjects.ĭepartments are responsible for informing visitors of the university's expense reimbursement policies prior to the incurring of expenses, providing them with the Visitor’s Expense Report Form to document expenses and having all visitor forms properly completed and processed. It is the policy of Northwestern University to reimburse individuals who are not university faculty or staff, but who have incurred expenses for university-approved, business-related expenses, including transportation, lodging and other travel or non-travel costs. Common Errors for Expense Transactions Training Guide.Managing Expense Reports Training Guide.Using Per Diem on an Expense Report Job Aid.Entering an Expense Report Training Guide.Employee Expense Report Checklist Job Aid.Visit myHR Learn Training to find information processing employee expense reports in NUFinancials, including: Expense reports should be submitted within 30 days after the completion of travel. ![]() Per university policy, in order to obtain reimbursement for personal funds expended for appropriate and approved university travel, entertainment, courtesy or other expenditures, all expenses must be documented on the NUFinancials Expense Report, including pre-paid and direct-billed expenses.
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