SCorp cash based and Credit Cards

[Dan5]

Cash based S Corp is using business credit cards like Visa or Master card for business expenses.
Questions:
1. Is this correct that you go by the transaction date to record the expense when using a credit card, not the date you actually paid the bill. What about credit cards from Suppliers like Home Depot, Office Depot. Should we treat them differently?

2. Should I include on Balance Sheet Credit Card Payable Account for purchases charged last year but paid this year?

Dan

[oceanlovin'ea]

Question 1

Yes, it is correct that you go by the purchase date not the payment date when expensing purchases on VISA, MC, AMEX, DISCOVER

But store cards like Home Depot, Lowes, etc. do not go by purchase date.

Linda F

[Dan5]

Dan5

What about second question.
Current Liability: Credit Card Payable

It could be substantial amount if company is paying only minimum payments.

Am I correct to expense credit card finance fees and late payment if any?
Dan

[Matt Sova]

Liability

That is correct, it is a current liability on the balance sheet. Expense finance charges and late fees as interest expense.