Comments on: How do I categorize a credit card payment on my business taxes? http://1mortgagecalculator.info/how-do-i-categorize-a-credit-card-payment-on-my-business-taxes/ Find out your monthly mortgage payment using this free updated mortgage calculator. Get amoritization tables, bi-weekly savings, refinance info and tips to save money on your home loan. Wed, 14 Sep 2011 21:17:02 +0000 hourly 1 http://wordpress.org/?v=3.2 By: bostonianinmo http://1mortgagecalculator.info/how-do-i-categorize-a-credit-card-payment-on-my-business-taxes/comment-page-1/#comment-326 bostonianinmo Mon, 01 Jun 2009 13:31:04 +0000 http://1mortgagecalculator.info/how-do-i-categorize-a-credit-card-payment-on-my-business-taxes/#comment-326 When you make the purchase you debit the appropriate expense or asset account for $1,000 and credit current liabilities. As you make payments, you debit current liabilities for the principal portion of the payment, debit interest expense for the interest portion, and credit cash for the amount of the payment. If this is all Greek to you, consider a consultation with a CPA or EA who specializes in small business accounting and taxation to get set up on a bookkeeping system. When you make the purchase you debit the appropriate expense or asset account for $1,000 and credit current liabilities. As you make payments, you debit current liabilities for the principal portion of the payment, debit interest expense for the interest portion, and credit cash for the amount of the payment.

If this is all Greek to you, consider a consultation with a CPA or EA who specializes in small business accounting and taxation to get set up on a bookkeeping system.

]]> By: zeuz http://1mortgagecalculator.info/how-do-i-categorize-a-credit-card-payment-on-my-business-taxes/comment-page-1/#comment-325 zeuz Sun, 31 May 2009 15:58:11 +0000 http://1mortgagecalculator.info/how-do-i-categorize-a-credit-card-payment-on-my-business-taxes/#comment-325 I wouldt treat the $1,000 charge as an expenditure. Create a loan in the amount of $1,000. Reduce the loan balance by $150 per payment and create an "interest expense" of $50 per payment. I wouldt treat the $1,000 charge as an expenditure. Create a loan in the amount of $1,000. Reduce the loan balance by $150 per payment and create an “interest expense” of $50 per payment.

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