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Hello our bank is giving us interest on our checking account. Do I book the interest income by way Journal Entry?

FirstMOBC wrote: ↑

Fri Jan 28, 2022 11:12 pm

Hello our bank is giving us interest on our checking account. Do I book the interest income by way Journal Entry?

Yes, as its not a contribution, you would make an entry via the Fund Accounting 'enter transactions' function, using a Miscellaneous Income account (4000 series) not as general tithes & offerings. If you don't have such an income account setup, I would add one, which would be tied to the unrestricted net assets account (normally 3110-000 in Powerchurch).

FWIW ... (this is my opinion) this is one of the few times an entry should be made using this method. Other such entries would be updating stock or mutual fund values, fund transfers, and other such entries that cannot be entered via the other accounting modules: Accounts Payable, Accounts Receivable, and Payroll; or Contributions.

Thank you for your prompt response.

Hello, The question is how do I add my checking account interest... this was your response to this question asked by someone else...

Yes, as its not a contribution, you would make an entry via the Fund Accounting 'enter transactions' function, using a Miscellaneous Income account (4000 series) not as general tithes & offerings. If you don't have such an income account setup, I would add one, which would be tied to the unrestricted net assets account (normally 3110-000 in Powerchurch).

My question is if I am crediting the 4000 series to add the interest deposit into the checking account totals, what am I debiting to get the funds to balance?

Cornerstone Bible wrote: ↑

Fri Apr 01, 2022 5:53 pm

Hello, The question is how do I add my checking account interest... this was your response to this question asked by someone else...

Yes, as its not a contribution, you would make an entry via the Fund Accounting 'enter transactions' function, using a Miscellaneous Income account (4000 series) not as general tithes & offerings. If you don't have such an income account setup, I would add one, which would be tied to the unrestricted net assets account (normally 3110-000 in Powerchurch).

My question is if I am crediting the 4000 series to add the interest deposit into the checking account totals, what am I debiting to get the funds to balance?

You DEBIT your checking account and CREDIT the income. As I said above, you should have some type of miscellaneous income account (4000 series). If you want to track the interest income separately, you would create a new account (as mentioned above) using the unrestricted net assets account (3110).

Basically take a look at the transaction created when you Post Contributions. Its the same type of transaction but using a different income account.