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Ask Lane Your Own Question
Category: Finance
Satisfied Customers: 9711
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I am setting up a corporate accounting system.. I am

Customer Question

I am setting up a corporate accounting system.. I am starting at Jan 1 and importing bank, credit card, and personal expense data.For the credit card, a payment made in Jan 2016 will cover expenses incurred in December, that I don't wish to have considered here but if I don't include them, the payment posted in Jan 2016 will not align. What is the proper way to account for this? Can I user the GL to essentially negate these 2015 transactions?
Submitted: 4 months ago.
Category: Finance
Expert:  Lane replied 4 months ago.



The payment aginst credit card liability and the expense itself are two different entries.


If you imported EVERYTHING, there should have been a credit card liability. (At the very least for the expense put on the card in 2015, if not more), depending on whether the balance is paid-off every month.


THe payment will be a credit to cash and a debit to the credit card liability... (all balance sheet - won't affect income or expense at all)

Expert:  Lane replied 4 months ago.

Please let me know if you have any questions at all.


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I have a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.

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