Ask Experts Questions for FREE Help !
Ask
    NancyG's Avatar
    NancyG Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Dec 4, 2008, 12:23 PM
    Office Gift Accrual
    Hi:

    I'm a bit confused. We have an Office Gift Accrual set up for Christmas gifts to employees and some clients. We accrue monthly. We pay the bulk of this in December and January. What would the entry be to handle the December payments. Should the accrual be offset?
    Thanks-
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Dec 10, 2008, 07:09 PM

    What accounts is your company using for these transactions?

    If company is purchasing gifts and paying by cash then the journal entry is:
    Debit Gift Expense(or Similar Account) for the amount.
    Credit Cash for the amount.

    If the company is transferring funds to a Gift account, then purchasing gifts later then the journal entry is:
    Debit Prepaid Gifts(or similar account) for the amount
    Credit Cash for the amount

    Then when gifts are purchased:
    Debit Gift Expense for the amount
    Credit Prepaid Gifts for the amount
    suthakar's Avatar
    suthakar Posts: 1, Reputation: 1
    New Member
    		  
    #3

    Dec 10, 2008, 09:48 PM
    Comment on pready's post
    Based on cash transaction the first answer is correct. Based on non cash Transaction the second entry may be made with one more entry based on the rule of what has been received, and what should be received; what has been paid and what should be pai
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Office 2000 vs. Office 07 Pros and Cons [ 1 Answers ]

I know this may seem odd. Im a network admin and the company I work for has 160 users on Office 2000. I would like to upgrade to Office 07. I need some compelling reasons to spend 50,000 dollars of the companies money. The owner is not software savvy, nor does he like to part with money. Any...

Uninstalling Office 2007 and Installing Office 2003 [ 2 Answers ]

I recently purchased a new Dell with a Vista system. It also came pre loaded with Office 2007. My problem is: I do contracting work at home and Office 2007 is not compatible with the software they use so I must install Office 2003 to continue to work. If I go to the add/remove programs in my...

What to I do after filing w/co. Clerks office/gift deed [ 1 Answers ]

My mother (I am her son) has gift deeded her property to me. She remarried a man 8 years ago who is really (Dumb) as in (dumb and dumber). He will remain in the home after we take possession as my mother wanted (to provide a roof over his head). That is OK with us. My question is: after I...

Office 2007 asks for Office 2000 installation discs [ 2 Answers ]

Hi all. I used to run Office 2000 but uninstalled it and installed Office 2007. When I run the Spell Checker it does not function. When I try to run it, The computer tries to install it and then asks for the Office 2000 Installation disks. I insert the Office 2000 disks but then it...

Office 2003 can't open after uninstalling Office 2007 [ 2 Answers ]

Hi, I can't open any of my Office 2003 applications. A 'Widows Installer' box pops up, and asks for SKU112.CAB. I can't find my original install disks. I tried a solution I found, opening in safe mode and stopping msiexec.exe, but the laptop then showed a Error 1311. Source file not found....

View more questions Search