By the end of the PP&E’s useful life, the ending balance should be equal to our $200k assumption – which our PP&E schedule below confirms. The beginning balance of the PP&E is $1 million in Year 1, which is subsequently reduced by $160k each period until the end of Year 5. The salvage value is […]
There’s no shortage of payment options out there, but the recurring payment option is the only one that takes all of the burden off your customers. Join businesses like yours that are transforming their billing experience with us. This will optimize cash flow, minimize administrative burdens, ensure compliance and security, and also help you discover […]
The amount of sales discount is deducted from the gross sales to calculate the company’s net sales and recorded in a separate sales discount account. Sales Allowances contra revenue account records the value of reductions in selling price granted to buyers who agreed to accept a defective product instead of returning it to the seller. […]
When a business pays for an expense in advance, it records a debit to a prepaid expense account (an asset) and a credit to a cash account (also an asset). This reduces the cash balance but increases the prepaid expense balance. When the company makes an advance payment for insurance, it can make prepaid insurance […]
CDs with terms as short as three months to six months are available, however. Average interest rates for money market accounts can vary based on the amount deposited. The best-paying money market account advertised online as of July 2024 was offered by Brilliant Bank at 5.35% with a $1,000 minimum deposit. The money market is […]
CDs with terms as short as three months to six months are available, however. Average interest rates for money market accounts can vary based on the amount deposited. The best-paying money market account advertised online as of July 2024 was offered by Brilliant Bank at 5.35% with a $1,000 minimum deposit. The money market is […]
These expenditures include items such as postage, delivery expense, and minor office supplies (e.g., coffee). In most companies, there are many occasions when a small amount of cash must be spent at short notice. Double Entry Bookkeeping is here to provide you with free online information to help you learn and understand bookkeeping and introductory […]
This information helps in assessing the company’s financial performance and its ability to generate shareholder value over time. Understanding the the debt a firm owes to others is called a(n) can be instrumental for any business owner. It assists in translating complex financial transactions into simple, digestible insights that can inform strategic decision-making. Withdrawing refers […]
Double entry bookkeeping is based on the basic accounting equation. The equation states that the total assets of a business must equal the total liabilities plus the owners equity in the business. Companies compute the accounting equation from their balance sheet. They prove that the financial statements balance and the double-entry accounting system works. Example […]
