Categoria: Bookkeeping

In this case we added a debit of $4,665 to the income statement column. This means we must add a credit of $4,665 to the balance sheet column. Once we…

Content Statement Of Stockholders’ Equity Statement of Cash Flows (SCF) Statement Of Shareholders’ Equity Calculations Involving Stockholders’ Equity Paid-in Capital What is the Purpose of Statement of Shareholders’ Equity? Contents…

T account is an appropriate form to analyze the accounts and it shows sides of account i.e. debit side and credit side of an account. The applications vary slightly from…

In Dairy industries, butter or cheese is the main product, but butter milk is the by-product. In an Oil refinery, petrol is the main product, while sulphur, chemical fertilisers, bitumen…

This can include anything from salary and wages, commissions, pension plan contributions, and benefits. Hiring a freelancer, needing a plumber for broken pipes, or getting a Certified Public Accountant (CPA)…

Using T Accounts, tracking multiple journal entries within a certain period of time becomes much easier. Every journal entry is posted to its respective T Account, on the correct side,…

It is important to note that repeated failure to correct the information with an amended return will result in fines but not the loss of tax-exempt status. As such, it…

As a result, it is critical for any business to understand its operating cycle so that it can forecast how much working capital they need or is on hand at…

Accumulated depreciation takes into consideration the total amount of depreciation of an asset from the point that it started being used. It is what is known as a contra account;…

For instance, if an accountant forgets to document an expense or factor in a prepaid expense that has already been amortised, this may lead to inaccurate financial reporting. Consequently, such…