Bookkeeping

This business transaction increases company cash and increases equity by the same amount. It’s important to note that although dividends reduce retained earnings, they are not expenses. [...]

As the product or service is fulfilled, the unearned revenue account is decreased, and the revenue account is increased. By understanding and properly accounting for unearned revenue, businesses [...]

She holds a Bachelor of Arts in human resources management and is PHR-certified. Another option is to do your own bookkeeping manually or use accounting software such as QuickBooks. Doing it [...]

When goods are labeled as FOB shipping point, the seller’s role in the transaction is complete when the purchased items are given to a shipping carrier and the shipment begins. FOB, or [...]

If you’re mixing personal and business travel, be clear about what days you spend working and document your meetings and business activity during those days. The safest and easiest way to receive [...]

Government officials will go through your accounts in fine detail. In other types of business, inventory has a clear and specific value. One house or office block might remain in the same hands [...]

In the example, the machine costs $5,000, has a salvage value of $1,000, and a 5-year life. With a 20% depreciation rate, the first-year expense is $800, and the second year is $640, and so on. [...]

For the second year, the adjusted basis of the computer is $4,750. You figure this by subtracting the first year’s depreciation ($250) from the basis of the computer ($5,000). Your [...]

This transaction is recorded as a prepayment until the expenses are incurred. Only expenses that are incurred are recorded, the rest are booked as prepaid expenses. Adjusting entries are made at [...]

The last step of developing a master budget uses the components you have compiled to create a budgeted balance sheet. The budgeted balance sheet predicts the final effect of costs and sales on [...]