Quicken & Other Budget/Accounting Software/Barter



My barter accounts appeared as $363.69 due to exchange rates

I am going to create journal to adjust this to zero with this entries :

Credit : Barter &363.69
Debit : Unrealized gain/loss $363.69

My unrealized gain/loss account is under other expenses. Is this correct?

I am presenting Balance sheet reports monthly, so do i need to reverse back this JE? When should i do this? And what should i name the journal?

What happens if i DON'T reverse back the first Journal i made above? Is this ok?

What is the difference between realized and unrealized gain/losses. How should i know if the entries should be posted in realized or unrealized?

Where should i allocate realized gain/loss under the chart of account?

ANSWER: If the barter account has money in it due to the exchange rate difference.
The the JE should go to  realized exchange rate gain/loss.
Te bills and invoices are now considered paid, there is no future
transaction attached to these bills and invoices.

The unrealized gain/loss is used to RESTATE the balance sheet
for the exchange rate as of the date of the balance sheet. So if you had
a vendor bill to pay for $1000 USD and when you received the goods the exchange
rate is .xxx  but as of the balance sheet date, the bill is not paid and the exchange
rate is .YYY , then a temporary adjustment is made to bring the balance sheet liability
to the value it would be should you pay that bill on the balance sheet date.

I would make the realized gain/loss an other expense as well.

Linda Saltz, CPA
Advanced Certified QuickBooks Advisor

We sell and support QuickBooks Enterprise

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What should i name the journal?
I use the barter account for cross currency payment. (from your suggestion)

ANSWER: Hi Farida,

I dont know what you mean by "naming a journal"
In QuickBooks we use field names for customers, vendors, employees
chart of accounts and items.  A journal entry is a type of transaction
and does not have a name.

If you could provide additional details, I may be able to help.

Linda Saltz, CPA
Advanced Certified QuickBooks Advisor

---------- FOLLOW-UP ----------

QUESTION: a description for this journal or note

Let me know if this is not what you need:
To record Exchange rate loss for Accounts receivable and accounts payable offset
Using an exchange rate of XXX as of mm/dd/2013.

Fill in the exchange rate and Date of the exchange rate you used to
createh offset.  

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Linda Saltz, CPA, QBalance.com


QuickBooks best practices, troubleshooting, accounting, tax We have over 70 pages of website content about QuickBooks tips, running a business, tax and business startup at http://www.qbalance.com


Accountant and CPA over 20 years. Specializing in accounting software for over 12 years, Certified QuickBooks Pro Advisor, QuickBooks seminar instructor since 1997.
Producer of www.QBalance.com over 100 pages devoted to QuickBooks help and support and training for small business owners in tax and accounting issues.

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