Accrual Incentive Fees Journal Entry
W he n Incentive Fees is not paid and services received from investment manager, t he n it is t he compa ny’s ob ligatio n to pay to investment manager for t he services re ndered during t he period. I n that a n Accrued I n ce ntive Fees Account is created to record an y i ncentive fees not paid in cas h. This accou nt is closed w he n t he compa ny fully paid t he amou nt of payment to investment manager. T he adjusti ng entry of accrued incentive fees is s how n b elow: I ncentives Fees a/c XXX Accrued Incentive Fees a/c XXX ...