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areedy
Joined: 25 Jun 2008
Posts: 49
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| Posted: Thu Jul 31, 2008 2:12 pm Post subject: Bartering income |
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How is bartering income reported on P&L statement? Simply as a separate line? And what is the journal entry for it? debit the forgone asset/service, credit the bartering income?
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Richard Noot
Joined: 20 Aug 2005
Posts: 878
Location: Minnesota
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| Posted: Fri Aug 01, 2008 7:33 am Post subject: Re: Bartering income |
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areedy wrote: How is bartering income reported on P&L statement? Simply as a separate line? And what is the journal entry for it? debit the forgone asset/service, credit the bartering income?
Thank you The income is reported as other income the expense
is reported as contract labor and a 1099 is issued |
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areedy
Joined: 25 Jun 2008
Posts: 49
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| Posted: Fri Aug 01, 2008 7:56 am Post subject: |
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So, as far as I understand , I have to debit Contract Labor and credit Other Income, so the net result of the transaction is 0, correct?
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Richard Noot
Joined: 20 Aug 2005
Posts: 878
Location: Minnesota
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| Posted: Fri Aug 01, 2008 8:30 am Post subject: |
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| [quote="areedy"]So, as far as I understand , I have to debit Contract Labor and credit Other Income, so the net result of the transaction is 0, correct? Theory wise this would be true if the services were of equal fmv which might not be the case. More than likely there would be an additional loss or gain dependin on whose services are normally billed higher. |
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areedy
Joined: 25 Jun 2008
Posts: 49
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| Posted: Fri Aug 01, 2008 9:34 am Post subject: |
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| Thank you! |
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