Barter transactions on company books
A company's CEO has a personal barter exchange account. He uses the barter account to purchase items for the business and also uses the exchange account to receive income from the business's customers.
When he spends money from the account, I believe the correct journal entry is a debit to the expense account (office supplies, for example) and a credit to an owner's equity/contribution account (I am using "APIC - Barter Transactions" to differentiate between personal cash expenses for company purposes vs personal barter expenses for company purposes.
BUT, when he receives income from customers - the credit is to Income and the Debit is currently to "Barter Bank Account". But because the barter account is his personal account, I don't know what to do with the balance in the account...
Any thoughts? (and, of course, he does not want to open a new barter exchange account just for the business... argh... )
Thanks
Dave