[catchme581]

Hi,

Can someone help with the Journal entry of Restructuring charge. What is the restructuring charge Journal entry, when we create a reserve.

So if the company takes a 70,000 restructuring charge in a given year, how would a journal entry be to create a restructuring reserve and the expense of it over 2 years.

Thanks!

[souper67]

You would Dr. Restructuring Expense Account and CR. Restructuring Liabilty account. This is typical of an accrual liability transaction, or the journal entries to record an expense not yet paid. Once the restructuring cost are actually made then you would Dr. Restructuring Liability and Cr. Cash.