Accounting

Is the opposite, as it is where a company records the sale of its goods or services to another but has not yet collected any funds. Accounts receivable are considered current assets of the recording company.

The primary job of a bookkeeper is to maintain and record the daily financial events of the company. A Bookkeeper is responsible for recording and maintaining a business’ financial transactions, such as purchases, expenses, sales revenue, invoices, and payments. Credit balance in acc […]

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How is standard mileage rate calculated?

Using a mileage rate
The standard mileage rate is 56 cents per mile. To find your reimbursement, you multiply t […]

The Financial Accounting Standards Board is the source for the GAAP standards. LIFO is more difficult to maintain than FIFO because it can result in older inventory never being shipped or sold. LIFO also results in more complex records and accounting practices because the unsold inventory costs do not leave the accounting system.
First In, First Out and Last In, First Out are two common inventory management methodologies. The two models are based on opposite methods, each with a few distinct ad […]

Therefore, you will debit the cash entry and credit unearned revenue under current liabilities. After you provide the products or services, you will adjust the journal entry once you recognize the money. At this point, you will debit unearned revenue and credit revenue. Unearned revenue refers to revenue your company or business received for products or services you are yet to deliver or provide to the buyer . Therefore, businesses that accept prepayments or upfront cash before delivering produ […]

Many do not fully understand what the debt limit is and the full impact of a breach. This piece explains the basics of the debt limit, the current situation, and the differences between a debt limit default and a government shutdown. When employees retire within a company, some are entitled to pension plans. A company’s pension liabilities can be calculated by taking the difference between the total amount owed to the retirees and the actual amount of money the company has available to ma […]

An adjusting journal entry occurs at the end of a reporting period to record any unrecognized income or expenses for the period. The adjusting entry for accrued interest consists of an interest income and a receivable account from the lender’s side, or an interest expense and a payable account from the borrower’s side.

Let’s assume that on December 16, a company borrows $20,000 from its bank at an annual interest rate of 6%.
CenterPoint displays the next accrued interest tran […]