Back to the Elks Lodge again--
#1 We have 3 Divisions in a Corporation. Each Division has its’ own income/expense GL account numbers and separate bank accounts. One division (Evergreen Club) writes a check from their Evergreen Club bank account as a contribution to another division (Evergreen Lodge) who deposits the check into their Evergreen Lodge bank account. Can this transaction be posted as an ordinary expense by the Evergreen Club and as ordinary income by the Evergreen Lodge? Please note that if I simply post it as a transfer from one bank account to another it does not appear on the profit and loss for each of the divisions making the recipient look like they are spending money they do not have, and the contributor ends up looking like they should have more money than they actually have.
#2 Can investment income from an investment account (not part of our operating income) such as dividends & capital gain distributions that are automatically reinvested be posted to “Other Income” as opposed to “Ordinary Income”?
#3 Can depreciation be Journal a entry to “Other Expenses” as opposed to “Ordinary Expenses”?
Thanks,
Mark
#1 We have 3 Divisions in a Corporation. Each Division has its’ own income/expense GL account numbers and separate bank accounts. One division (Evergreen Club) writes a check from their Evergreen Club bank account as a contribution to another division (Evergreen Lodge) who deposits the check into their Evergreen Lodge bank account. Can this transaction be posted as an ordinary expense by the Evergreen Club and as ordinary income by the Evergreen Lodge? Please note that if I simply post it as a transfer from one bank account to another it does not appear on the profit and loss for each of the divisions making the recipient look like they are spending money they do not have, and the contributor ends up looking like they should have more money than they actually have.
#2 Can investment income from an investment account (not part of our operating income) such as dividends & capital gain distributions that are automatically reinvested be posted to “Other Income” as opposed to “Ordinary Income”?
#3 Can depreciation be Journal a entry to “Other Expenses” as opposed to “Ordinary Expenses”?
Thanks,
Mark