September 15, 2023

Balance Sheet Definition & Examples Assets = Liabilities + Equity

As noted above, this statement will reflect an increase in owner’s equity for the operating income generated by the business. It will also include the decreases from the distribution of wages to fund the owner’s lifestyle. This means the owner’s equity represents the owner’s net worth of a business. Each owner of a business has a separate account ca ...

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September 1, 2023

Purchase Discount Journal Entry: Example and How To Record

Getting purchase discounts allows retailers to offer sales discounts and thus, keep their customers satisfied. The purchase discount relates to the price of the goods agreed upon by both parties. Usually, suppliers offer a percentage of the total amount as a purchase discount. On top of the discount rate, they will also specify the number of days b ...

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January 25, 2023

Sole Proprietorship 101: The Easy Guide to Setting One Up

Corporations can be a good choice for medium- or higher-risk businesses, those that need to raise money, and businesses that plan to “go public” or eventually be sold. You don’t have to pay a fee to file a fictitious business name statement, but you could pay a $10 fee to reserve the name for up to 60 days before you file. PayPal h ...

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February 18, 2022

Journal Entry Bad Debt Expense: Example and Explanation

Gift cards have become an important topic for managers of any company. Understanding who buys gift cards, why, and when can be important in business planning. In the journal entry, Utility Expense has a debit balance of $300. This is posted to the Utility Expense T-account on the debit side. You will notice that the transactions from January 3 and ...

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September 29, 2021

Vehicle Financing Purchase

The lease term used for the initial lease liability and ROU asset measurement is based on when the purchase option is likely to be exercised. If the purchase option is exercised at the end of the lease, the lessee accounts for an ROU asset through the entirety of the contract. Once the underlying asset is purchased, the lease liability and ROU asse ...

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July 21, 2020

Gross Pay Definition, How to Calculate, Examples

In this case, his gross earnings are $50,000, and his net earnings are $40,000. These are payments that are taken directly from your salary, but which are not subject to tax. Because they’re tax-free, you’ll see these deducted from your gross pay before any tax calculations. The pay rate should be in writing and signed by both the employee and empl ...

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June 10, 2020

Accrued Expense vs Accrued Interest

Adjustments are made using journal entries that are entered into the company’s general ledger. An expense should be recorded in the company’s financial statement in the accrual-based accounting system once it’s realized. This recording should be irrespective of whether cash has been paid or not. The company has to pay the cost of borrowing mo ...

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June 1, 2020

Accounting Consultant Job Description Sample Template

As a senior accountant analyst, your main role is to provide professional guidance to a company. You need to have excellent preparation skills to create financial reports that clearly state the expenses and forecast the company’s financial future. Moreover, as a senior accountant analyst, you are supposed to give general operational assistanc ...

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