Deferred is also used in the university admissions process. It is the action by which a school rejects a student for early admission but still opts to review that student in the general admissions pool.
Example: Company A rents its building to Company B, which has its office in the building. Before the year ending 31 December 2005, the company A issues an invoice to company B. The invoice covers rent for two years: 1 January 2005 to 31 December 2006.
Total rent for the two years is 1,000.
Accounting in Company A as of 31 December 2005
Debit Accounts Receivable 1,000
Credit Revenue 500 (rent for 2005)
Credit Deferred income 500 (rent for 2006)
Accounting in Company B as of 31 December 2005:
Debit Prepaid Expense 500 (rent for 2006)
Credit Accounts payable 1,000
Prop. Regs. issued on age 50 "catch-up" deferrals for Sec. 401(k), 403(b) and other plans.(salary reduction savings plans)
Jan 01, 2002; The IRS issued proposed regulations on Oct. 23, 2001, explaining retirement plan "catch-up" contributions made by individuals age...