If at any point the sum of debits for all accounts does not equal the corresponding sum of credits for all accounts, an error has occurred. It follows that the sum of debits and the sum of the credits must be equal in value. Double-entry bookkeeping is not a guarantee that no errors have been …
3 7: Posting to the General Ledger Business LibreTexts Read More »
The promissory note, which outlines the formal agreement, always states the amount of the loan, the repayment terms, the interest rate, and the date the note is due. The following is an example of notes payable and the corresponding interest, and how each is recorded as a journal entry. Of course, you will need to …
As soon as the companyprovides all, or a portion, of the product or service, the value isthen recognized as earned revenue. Unearned revenue is considered a liability on a company’s balance sheet because it represents an obligation to deliver products or services to customers in the future. Until the company fulfills its obligations, it owes …
Is Unearned Revenue a Liability? Unearned Revenue and Liability Classified Read More »
Learn more about bookkeeping, how it differs from accounting, the required qualifications, and bookkeeping jobs and salaries. Bookkeepers produce and manage financial records for small businesses, nonprofit organizations, and accounting firms. Though licensure is not required to work as a bookkeeper, some professionals pursue certification to demonstrate their skills to employers and stand out in …
Bookkeeping Certification: What It Is and How to Choose the Best One for You Read More »
The first three of those are meant to capture identifying information about workers and their corresponding job classification. It’s considered best practice to continue submitting CPRs even for weeks without any work. Well, a compliance officer reviewing your CPRs might find it curious that they haven’t received one for the second week. Or, worse yet, …
Millions of New Workers Eligible for Overtime Under DOL Rule 2 Read More »
Also, under this method, deductions are larger in the earlier years and smaller in the later years. You can make a change to the straight line method without consent. You purchased and placed in service a rental house on March 2, 1984, for $98,000 (not including the cost of land). For 1985 through 1988, you …
To close the income summary account, the balance in the account needs to be transferred to a capital account (generally the retained earnings). By doing so, the income summary account displays the net results of the company for a financial period. The income summary account in a credit position means the company has made a …
What is Income Summary and How Does it Work? Medium Read More »
Depreciation is the periodical allocation of a tangible asset’s cost on the balance sheet. Amortization functions in the same way, but is more focused on intangible assets. They are usually physical, fixed, and non-consumable assets such as property, equipment, or infrastructure. Some industries are more capital-intensive than others, such as the oil and gas industry, …
The predetermined overhead rate found in step four is applied to the actual level of the cost driver used by each product. As with the traditional overhead allocation method, the actual overhead costs are accumulated in an account called manufacturing overhead and then applied to each of the products in this step. GAME has been …
Activity-Based Costing Overview, Approach, Benefits Read More »