KW Debt Journal Entry

This is an example of the Journal Entry (JE) that should be used for KW Debt. 

Example KW Debt for Note Payable Journal Entry:

#1 - Receive Loan from Bank, Individual, Etc.

• 1-XXXX Cash Debit
• 2-XXXX Note Payable Credit

#2 - Make payment on Note to Bank, Individual, Etc.

• 2-XXXX Accounts Payable Credit
• 2-XXXX Note Payable Debit
• 1-XXXX Cash Credit
• 2-XXXX Accounts Payable Debit

#3 - KW Debt Expense to "recoup" cash for cash flow

• 6-XXXX KW Debt Expense Debit
• 9-XXXX Reverse KW Debt Credit
• 1-XXXX KW Debt Debit
• 1-XXXX A/D - Contra KW Debt Credit

Example KW Debt for Depreciation/Amorizaton of an Asset Journal Entry:

#1 - Purchase the asset

• 1-XXXX Cash Credit
• 1-XXXX Asset (i.e. Office Equipment) Debit

#2 - To identify this asset under KW Debt rather than Accumulated Depreciation

• 1-XXXX KW Debt Contra Debit
• 1-XXXX A/D KW Debt Credit

#3 - To “expense” the asset rather than depreciate

• 6-XXXX KWR Debt Allowance Expense Debit
• 9-XXXX Reverse KWR Debt Allowance Credit