Example of Statistical Journal Entry
This example uses headcount to illustrate how a company can record statistical information in a journal entry. The posted statistical balances can then be used in journal entries that allocate expenses.
Scenario
InFusion America Incorporated hires thirty new employees and assigns them to the sales, accounting, and purchasing departments. To allocate expenses properly, InFusion America Incorporated must track headcount for each department.
Transaction Details
The thirty new employees are assigned as follows:
-
Twelve to the sales department
-
Ten to the accounting department
-
Eight to the purchasing department
The sales department has expanded its territory and needs twelve new employees to cover the new areas. The sales force works in the field and has travel expenses.
The accounting department has lost four employees to retirement so needs four new employees to fill those vacated positions. The accounting department also added six new positions to handle the expected increase in sales. Accounting employees work in a central office, and the department allocates expenses across other departments.
The purchasing department has added four new buyer positions and four new warehouse positions to handle the expected increase in orders. Purchasing employees work in the warehouse and participate in InFusion America Incorporated health insurance plan.
Resulting Statistical Journal Entry
The following table shows the journal entry that was created, using the STAT currency, to capture the headcount information for each department.
Department |
Department Number |
Debits |
Credits |
Description |
---|---|---|---|---|
Sales |
200 |
12 |
Sales force addition due to territory expansion. |
|
Accounting |
300 |
10 |
4 |
Addition of six new positions and the loss of four due to retirement, which requires four new employees. |
Purchasing |
500 |
8 |
Addition of four buyers and four warehouse positions. |
|
Total |
Not Applicable |
30 |
4 |
Not Applicable |
In statistical entries, debits aren't required to equal credits.