Category: Bookkeeping

The results dictate the optimal amount of inventory to buy or make to minimise expenses. Sales Discounts, Sales Returns and Allowances, and Cost of GoodsSold will close with the temporary debit balance accounts to IncomeSummary. A company sells a product for $100, and the cost to produce the product is $60. If you’re in the… Continue reading 6 2: Compare and Contrast Perpetual versus Periodic Inventory Systems Business LibreTexts

Share it with others who like to see how much money you’re making and then get back to work. Bookkeeping, in large part, has to do with accurate recordkeeping. This means recording transactions and saving bills, invoices and receipts so you have all the data you need to run reports. Accounting software makes it easy… Continue reading Bookkeeping 101: Bookkeeping Basics for Small Businesses

You can use this tool to understand and solve complex and lengthy variance problems. Variance calculator and sample variance calculator with a step-by-step solution and APA format. Scientists can look for differences between test groups to determine if they are similar enough to test a hypothesis successfully. The higher the variance of the data set,… Continue reading Variance Calculator

Given the uncertainty about the timing or amount of future expenditures needed to settle legal claims, the recognition and measurement of a provision can often require companies to make significant judgments and assumptions. That is the best estimate of the amount that an entity would rationally pay to settle the obligation at the balance sheet… Continue reading Accounting for legal claims: IFRS compared to US GAAP

The contra account purchases returns and allowances will have a credit balance to offset it. Bill uses the purchases returns and allowances account because he likes to keep tabs on the amount as a percentage of purchases. He also needs to debit accounts payable to reduce the amount owed the supplier by the amount that… Continue reading Purchase Discount in Accounting

This situation arises when a tenant has made use of property owned by the landlord, but has not yet paid the agreed-upon amount of rent for that usage period. This entry is made as part of the closing process at the end of each reporting period. Rent received in advance is the amount of rent… Continue reading Prepaid Rent and Other Rent Accounting for ASC 842 Explained

AccumulatedDepreciation–Equipment ($75), Salaries Payable ($1,500), UnearnedRevenue ($3,400), Service Revenue ($10,100), and Interest Revenue($140) all have credit final balances in their T-accounts. Thesecredit balances would transfer to the credit column on the adjustedtrial balance. The adjusted trial balance also helps identify discrepancies or errors that may have occurred during the initial recording of transactions. By reviewing… Continue reading 4 4: Use the Ledger Balances to Prepare an Adjusted Trial Balance Business LibreTexts

The right hand, payments side (credit) would be identical in structure and format. To keep your books accurate, you need to have a cash receipts procedure in place. Your cash receipts process will help you organize your total cash receipts, avoid accounting errors, and ensure you record transactions correctly. The cash disbursement diary and the… Continue reading Cash Receipt Journal Definition, Explanation, Format, and More

Commercial projects, such as office buildings, retail spaces, and industrial facilities, involve higher complexity and larger budgets. Job costing is critical here to allocate costs to specific areas or phases of the project. Additionally, managing progress payments, retentions, and subcontractor contracts is vital, as these projects often involve multiple stakeholders and longer timelines. Track All… Continue reading Construction Bookkeeping Tips to Maximize Contractor Success

Look for signs of these traits, like a clean website or an efficient email response. Bookkeepers create important data for your company, but who “owns” this data if the relationship expires? If the bookkeeper has ownership it could make ending the relationship contentious and disruptive. Don’t let there be any uncertainty about your rights to… Continue reading 30 Questions to Ask a Bookkeeper Before You Hire Part I