Journal Entries Articles

When you manage your accounting books by hand, you are responsible for a lot of nitty-gritty details. One of your responsibilities is creating closing entries at the end of each accounting period.

Extending credit to customers is a great way to encourage impromptu purchases, boost sales, and increase profits. But sometimes, customers don’t pay you, resulting in a bad debt. What is bad debt?

When it comes to your small business, you don’t want to be in the dark. Your accounting books should reflect how much money you have at your business. If you use double-entry accounting, you also record the amount of money customers owe you. But, what happens if they don’t pay? To protect your business, you […]

Your hardworking employees need a vacation every now and then. Many employers provide vacation time to employees, but employees might not use their earned vacation right away. When employees have accrued vacation time, you must create a vacation accrual journal entry. Read on to understand the basics of vacation accrual and how to calculate and […]

In business, the value of your assets doesn’t stay the same. An asset’s market value might be higher or lower than its book value. If the value of your assets permanently changes for the worse, you need to record the impairment of assets.  

Performance-related or annual bonuses reward employees and encourage them to be more productive. Some employers may choose to offer an accrued bonus. Read on to learn about providing an accrued bonus, how to account for bonus accrual, and rules to follow.

Does your small business work with cash? More than likely, the answer is yes. And when you have cash expenses, you should record them in a cash disbursement journal.