Debits and Credits Normal Balances, Permanent & Temporary Accounts

Expenses normally have debit balances that are increased with a debit entry. Since expenses are usually increasing, think “debit” when expenses are incurred. (We credit expenses only to reduce them, adjust them, or to close the expense accounts.) Examples of expense accounts include Salaries Expense, Wages Expense, Rent Expense, Supplies Expense, and Interest Expense. Generally, […]

What is Form 1065, U S. Return of Partnership Income?

Net rental activity income is nonpassive income for a partner if all of the following apply. 925 for additional information needed to help the partner compute the profit or loss from each at-risk activity and the amount at risk that may be required to be separately reported. If the amended return will be filed electronically, […]