Accounting for credit not paid from account

@Aaronc5150 

Disregard the $392.23.  It's not part of the $109,483.13. The two journal entries for the transaction should be:

1) The deposit:

2) Closing:

@Rainflurry  - you are awesome, thank you so much! Just one additional question - The "balance due from buyer" for $108,589.90, I had to cut a cashiers check out of the business account for that amount at closing.  Nothing from the journal entry above matches that amount to match to the bank transaction for that check - do I need to do something for that to match?

@Aaronc5150 

Doh!  Sorry, my mistake.  Add a credit line to the closing journal entry for $393.23 for Property Tax Expense and reduce the credit entry to cash by $393.23 to $108,589.90.  That will record a negative $393.23 Property Tax Expense, but when pay the annual(?) property taxes, the credit will reduce the tax expense by the portion of property taxes during the seller's ownership period leaving just your portion of the property tax expense.  Let me know if that makes sense.  

@Rainflurry- no problem! Although that does raise 1 more question.  We will be selling this property soon (it was a remodel/flip), so we won't be paying any additional property taxes on it.  Being that it will have a negative balance and we won't be paying any more taxes on it, will that cause any issue?

@Rainflurry - please disregard my previous question about the negative property tax question, once I entered it all, it makes sense now - sorry about that! One other question is that the $108,589.90 amount doesnt have a "match" for the bank transaction because its posted to the checking account in the journal entry.  Is it ok to just "Exclude" that transaction in the banking transactions or will that cause issues later?

@Aaronc5150 

Yes, you can exclude it and it shouldn't cause any issues later.

If you sell the property before you make the property tax payment, the $393.23 credit should be reclassified to other income- debit Property Tax Expense, credit Other Income.  

@Rainflurry - again, thank you so much for your help, you are a wealth of knowledge on here.  Do you do any bookkeeping assistance “for hire” outside of here?

Negative, but I appreciate the ask.  Good luck with the flip!