journal entry


(Georgia)

1) How to record an entry when the pastor buys groceries from Walmart to cook dinner for church members? 2) When pastor took guest to dinner (picadilly's) is this Pastor expense or ministry expense? 3) pastor pays for his health insurance is this pastor expense?

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God Bless You
by: Anonymous

You guys are the greatest...thank you so much. Just as i thought.
Church or pastor expenses?
by: Lewis in NC

The three questions you ask are really beyond other's control to answer as they all depend on the church administration's financial policies. Is the church financial policy set to pay or not to pay for the three items mentioned? If yes, then debit some appropriate expense account in each case and credit cash (while writing a check). For example debit Outreach expense for the first two and debit Pastor Insurance Expense for the third one. Expense account names can vary as to imagination and direction.
Expenses
by: RR, Framington, NH

1) How to record an entry when the pastor buys groceries from Walmart to cook dinner for church members? 2) When pastor took guest to dinner (picadilly's) is this Pastor expense or ministry expense? 3) pastor pays for his health insurance is this pastor expense?
I am blessed with a pastoral expense account (PEA) of over $16,000/year so this is how I deal with things.
1) if this is his gift to the church at church he can use the PEA for this or the church can reimburse from the general fund. If he is cooking dinner at home for another church member, it's on him, at his own expense or us the PEA, but I am very careful not to abuse this.
2) same as #1.
3) this can be paid for by the church or from the PEA so that it is not considered taxable income.
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