Category Archives: Bookkeeping

Non-operating expenses are the costs from activities not related to a company’s core business operations. The above example is the simplest form of income statement that any standard business can generate. It is called the single-step income statement as it is based on a simple calculation that sums up revenue and gains and subtracts expenses […]

If you want to score bonus points with the teller, enter your deposit amounts in dollars and cents. You’ll notice separate boxes for each entry on most deposit slips. The box on the far right is for the decimal (or cents) portion, and the next box to the left is for the dollar amount. It’s […]

Ending retained earnings information is taken from the statement of retained earnings, and asset, liability, and common stock information is taken from the adjusted trial balance as follows. Applying all of these adjusting entries turns your unadjusted trial balance into an adjusted trial balance. Adjusting entries are all about making sure that your financial statements […]

One reason for the accrual method’s popularity is that it smooths out earnings over time since it accounts for all revenues and expenses as they’re generated. Another disadvantage of the accrual method is that it can be more complicated to use since it’s  necessary to account for items like unearned revenue and prepaid expenses. With FreshBooks, you can send professional invoices, calculate expenses, accept […]

Twitty’s Books began its 2018 fiscal year with $330,000 in sellable inventory. By the end of 2018, Twitty’s Books had $440,000 in sellable inventory. Its primary service doesn’t require the sale of goods, but the business might still sell merchandise, such as snacks, toiletries, or souvenirs. If inventory increases, it suggests fewer sales, leading to […]

Get the 411 on how to record a COGS journal entry in your books (including a few how-to examples!). There are other inventory costing factors that may influence your overall COGS. The CRA refers to these methods as “first in, first out” (FIFO), “last in, first out” (LIFO), and average cost. The formula for calculating […]

Cost structure refers cafeteria plans to the various types of expenses a business incurs and is typically composed of fixed and variable costs. Fixed costs are costs that remain unchanged regardless of the amount of output a company produces, while variable costs change with production volume. Activity-based costing (ABC) identifies overhead costs from each department and […]

Any price above this minimum selling price represents incremental profit for the company. The telecom operator currently spends $400 on newspaper ads and $100 on maintaining the company’s website every month. The marketing director estimates that it will spend approximately $1,000 on television ads every month. The company will also need to hire a millennial […]

A rental activity held by a closely held corporation or a personal service corporation may be subject to the passive activity loss rules. Corporations can generally electronically file (e-file) Form 1120, related forms, schedules, and attachments; Form 7004 (automatic extension of time to file); and Forms 940, 941, and 944 (employment tax returns). If there […]

The Courts have responded to the OMB Control Number arguments with the following arguments. Individual Income Tax Return has contained the OMB Control number since 1981.[51] 2) As ruled in a number of cases, the absence of an OMB Control number does not eliminate the legal obligation to file or pay taxes. Form 1040-NR is […]