Accounting question?
Accounting question?
What are the accounts to debit and credit for the following adjusting entry?
Mortgage Payable of $9,700 is payable next year
(Current balance of the Mortgage Payable account is $150,600)
I know Mortgage Payable is debited but what do we credit to balance the equation?
Hmm...I think ajdustments shouldn't involve bank or cash...I'll look it up..thanks for answering =)
Answers:
aussiechick: Cash at bank
2006-10-23 19:43:32
2006-10-23 19:43:32
Artsy Lady: It's probably a question of entering the portion of current liabilities. You could have a mortgage payable account as a long term liability and another mortgage payable account as a current liability. Current liabilities are due within the next 12 months, long term liabilities are due after that. I am assuming that the $9,700 is the current portion, therefore you would debit LT mortgage payable and Credit current mortgage payable.
2006-10-23 19:51:55
2006-10-23 19:51:55
timid_girl: Debit Prepaid Mortgage and Credit Mortgage Payable.
Edit: The correct answer is to Debit Mortgage Expense and Credit Mortgage Payable.
2006-10-23 23:32:57
2006-10-23 23:32:57
yellowscissors: I'm not really sure on how to interpret the question. Do you mean to say that the current mortgage payable for this period is $150,600, but subsequently you found that $9,700 of those is not payable in this period, but the next?
You would probably have to adjust the expense amount alont with the mortgage payable.
Dr Mortgage payable
Cr Mortgage repayment expense
2006-10-24 05:15:02
2006-10-24 05:15:02