Explore BrainMass

Explore BrainMass

    Balance Sheet Accrual

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Can someone help? At work we received an invoice for $100k for a timeshare project and it was decided the cost can be setup as prepaid and amortized over the life. However the invoice was not processed for payment in time for May's month end close. The manager still wants the cost to be accrued for but what account would make sense to debit on the balance sheet?

    Dr. B/S Account?
    Cr. Accrued Fees Liability?

    © BrainMass Inc. brainmass.com June 4, 2020, 3:56 am ad1c9bdddf
    https://brainmass.com/business/balance-sheet/balance-sheet-accrual-543737

    Solution Preview

    The debit on the balance sheet would be an asset holding the timeshare. This would likely be a current asset. The entry would look like this:

    Timeshare project 100,000 (debit, asset ...

    Solution Summary

    This solution explains how an invoice accrual should be handled.

    $2.19

    ADVERTISEMENT