The first two are the same as above to remove the trailer from the books. In addition, there is a loss of $8,000 recorded on the income statement because only $65,000 was received for the old trailer when its book value was $73,000. There are always assumptions built into many of the items on these …
Depreciation: Definition and Types, With Calculation Examples Читать полностью »
This means that a manufacturer’s inventories and cost of goods sold will begin with amounts that reflect the standard costs, not the actual costs, of a product. Since a manufacturer must pay its suppliers and employees the actual costs, there are almost always differences between the actual costs and the standard costs, and the differences …
Still, the point is that your company will receive a vendor invoice for assembling the components into a finished product. Errors from outside the company can also compromise the integrity of the financial data. Automated processes reduce the risk of this occurrence and capture information from the original invoice so you can verify accuracy. Larger …
Understanding Accounts Payable AP With Examples and How to Record AP Читать полностью »
Although we see these types of fees on occasion, they’re quite rare and also a bit of a misnomer. A firm might present its fees as a daily, weekly, or monthly rate but, chances are, they’re basing those fees on an underlying hourly rate. In other words, they’re projecting the cost from an assumed number …
How Realization Negatively Impacts CPA Firms Читать полностью »
Retained earnings are like a running tally of how much profit your company has managed to hold onto since it was founded. They go up whenever your company earns a profit, and down every time you withdraw some of those profits in the form of dividend payouts. Strong financial and accounting acumen is required when …
An HOA’s governing board will assess the cost of a needed repair or replacement and then divvy that cost up among residents. Some HOAs require all residents to pay an equal share, while others base the portion a resident pays on the square footage of their unit. In this article, we’ll explore all the ins …
4 Best Practices for Managing Your Reserve Fund Читать полностью »
We are known for our commitment to our people as well as our clients. Check out our list of job openings, career opportunities, and benefits of joining our amazing team. My wife and I have been doing business with Dale Garabedian for many years. The relationship has been very professional and we feel very confident …
CPA Firm in Fresno CA Accounting & Tax Services Читать полностью »
There are two ways to record transactions in business and accounting. Both accomplish the same goal but slightly differ in how transactions are recognized. The entries provide transparency since they show the company did not distort any information. Adjustments bring a company’s entries into compliance with GAAP standards. The last purpose of adjusting entries is …
Adjusting Entries Types Example How to Record Explanation & Guide Читать полностью »
Contra equity reduces the total number of outstanding shares on the balance sheet. The key example of a contra equity account is Treasury stock, which represents the amount paid to buyback stock. Assume that a company uses a contra expense account to record the amounts that employees paid toward the company’s health insurance costs. For …
Types of Contra Accounts List of Examples Explanations Definition Читать полностью »
Amanda Bellucco-Chatham is an editor, writer, and fact-checker with years of experience researching personal finance topics. Specialties include general financial planning, career development, lending, retirement, tax preparation, and credit. Sign up to receive our weekly newsletter and learn more about small business taxes and accounting from our experienced specialists. The formation of the institute occurred …
