What are the journal entries for accrual accounting and cash accounting for an invoice and a payment?

caro stigers

I am attending University of Phoenix on line I am in Accounting 363. I have a problem I need help with I just need to know the steps to get the answer. What should I do?

ulhasmarthe

what is journal entry of accumulated depreciation?

kmphx72

Accrual accounting and cash accounting for recording an invoice and a payment are very different and care needs to be taken as to not confuse the two.

Under accrual accounting, the invoice would be recorded as a debit to your expense account and a credit to the payable account, such as accounts payable. When the payment is recorded, the debit is to the accounts payable for the bill and a credit to the cash account when the check is written.

Under cash accounting, no entry is made for the invoice. However, when the payment is made it is a debit to the expense account and a credit to the cash account.

Hope this helps.

kmphx72

Hi soon to be UoP alumni! What is Accounting 363? When you get this message, if UoP still has their schedule, your class will probably be over or soon to be over. Anyway, knowing what your class was would be helpful and also the type of problem you had.

kmphx72

The debit would be to a depreciation expense account and the credit would be to the accumulated depreciation account of the specific asset.

Hope this helps.