Bookkeeping

A general journal is the first place where data is recorded, and every page in the item features dividing columns for dates and serial numbers, as well as debit or credit records. In the journal, the accountant debits and credits the right account and records the transaction in the books of accounts for the very […]

Using a ledger, you can maintain an accurate record of your business’s financial transactions, generate financial reports, and monitor business results. Check out the post “Maintaining a General Ledger” from Wolters Kluwer for a more extensive list of general ledger accounts that might apply to medium to large businesses. A ledger account is a record

Shaun Conrad is a Certified Public Accountant and CPA exam expert with a passion for teaching. After almost a decade of experience in public accounting, he created MyAccountingCourse.com to help people learn accounting & finance, pass the CPA exam, and start their career. Therefore, the firm would be required to reduce the loan amount and

In the direct write off method example above, what happens if the client does end up paying later on? Accounts Receivable would be debited, and the Bad Debt Expense account would be reduced. How do you record the sale of inventory to a customer who the credit manager deems will have a 10% chance of

For example, a mortgage’s gross rate of 5% might translate to a net rate of 5.25% after administrative fees, which affects affordability calculations. It’s calculated by subtracting the cost of goods sold (COGS) from total revenue. For example, with revenues of $1 million and a COGS of $600,000, the gross profit equals $400,000. Whether it’s

Payroll deductions are wages that get withheld from, or taken out of, your total earnings. These  deductions can be used for paying taxes, what is the relationship between gross pay and net pay? contributing to employee benefits (like health insurance), and contributing to retirement accounts (like a 401(k) or Roth IRA). Some deductions, like Social

With a monthly subscription model and zero interchange fees, you will save hundreds and even thousands compared to a flat-rate pricing model. You can easily sign up for the services of a PSP because of the low barrier to entry. To get the best possible experience please use the latest version of Chrome, Firefox, Safari,

Each component of the cost of producing the clothing will be tracked as it occurs, thus improving the accuracy of determining the price. For example, in the case of a mass-produced clothing item, such as jeans, a company like Levi’s will track costs for a batch of jeans rather than for a pair of jeans.

For example, some items that are classified as overhead, such as plant insurance, are period costs but are classified as overhead and are attached to the items produced as product costs. Understanding the full manufacturing process for a product helps with tracking costs. This video on how drumsticks are made shows the production process for

However, investors may not always view a high working capital ratio favorably, as it could imply cash hoarding or lack of reinvestment. Here, we will take a look at a couple of examples to understand the calculation of the current ratio and how to use the formula. The current portion of long-term liabilities are also