Discussion:Adjusting Journal Entry

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Accounting Questions --> Adjusting Journal Entry

Bbarro1 (talk|edits) said:

30 July 2008
I am trying to make an adjusting entry and am having difficulty determining what to credit. In the general ledger (of an LLC), the account is showing a credit balance in medicare payable, however Medi/P has been paid on the individual's tax return. I therefore know I need to decrease Medi/P by debiting it for the amount paid but what would I credit? Thank you so much for any help you can provide!

Uncle Sam (talk|edits) said:

30 July 2008
Before you can be given an answer - how about providing a full set of facts so we know what you're talking about?

General ledger of what type of LLC - SM or MM?

Is this a business payroll tax issue (941) or an insurance premium of the member?

What does the payable account of a business have to do with an individual's return?

RoyDaleOne (talk|edits) said:

30 July 2008
What is this, a manual set of books, or software? If you are using software, you need to tell us what "brand".

Sounds like you are using software, and the payroll accounts may be incorrectly set-up, as we say. I recommend finding a local consultant on that software and having the consultant verify that the software is properly set-up.

Natalie (talk|edits) said:

July 30, 2008
Without knowing more, I would guess the credit would go to payroll taxes. I've seen many books with payroll taxes that are too high because the entire tax payment goes to the expense account.

Kevinh5 (talk|edits) said:

30 July 2008
it would also be important to know how the LLC is being taxed: 1065, 1120, 1120-S, or Sch C. This is in conjunction with Uncle Sam's first question.

then we'd wonder how the amount got there in the first place. which is what Roy is alluding to. Why is the member paying himself payroll?

also, could you please fill in your profile so that we will know that you are working on your CPA and EA exams and that you have a degree in accounting and law. People don't want to search all over to find this stuff out, like I just had to.

To join in on this discussion, you must first log in.
Retrieved from "http://www.taxalmanac.org/index.php/Discussion:Adjusting_Journal_Entry"