more-arw search

Q&A Forum

Booking web design project

A company signs a contract for an outside party to perform a website redesign. An invoice was received for the total amount of the project, however, per management only 1/2 is to be paid now and expensed, while the other 1/2 is to be paid in 4 months and capitalized when the project is finished. While it is clear the first part of the payment should be a debit to expense and a credit to cash, should any other journal entry be made now for the other half to be paid in 4 months? If so, you would have a credit to A/P, but what would the offset be since you don't actually have a completed asset as of yet to book?


Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.