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Bookkeeping

Stock Dividend Vs Stock Split The Nest

They both serve to reduce the market price per share and increase the number of shares issued and outstanding. Cash Dividend means dividend which is paid to shareholders in Cash/ Bank. When a company doesn’t have cash for payment of dividends, it gives dividends in the form of equity or we can say that additional […]

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Bookkeeping

Straight Line Depreciation Calculator

In reality, some assets might lose value faster initially and then stabilize. It’s the sum of all depreciation values from the time the asset started its depreciation. For each year, it’s increased by the yearly depreciation amount. Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial […]

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Bookkeeping

4 4 When Should a Company Capitalize or Expense an Item? Principles of Finance

The costs of these items are recorded on the general ledger as the historical cost of the asset. Capitalized assets are not expensed in full against earnings in the current accounting period. A company can make a large purchase but expense it over many years, depending on the type of property, plant, or equipment involved. […]

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Bookkeeping

How Is Petty Cash Reported in Financial Statements?

Once the account is reconciled, you’re ready to record your expenses into your general ledger. No matter how large the balance is, it is important for companies to set up a good internal control system that keeps track of all cash inflows and outflows from the petty cash account. For example, anyone who requires such […]

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Bookkeeping

Introduction to Adjusting Journal Entries and Prepaid Expenses Video Tutorial & Practice

Accumulated Depreciation – Equipment is a contra asset account and its preliminary balance of $7,500 is the amount of depreciation actually entered into the account since the Equipment was acquired. Therefore the account Accumulated Depreciation – Equipment will need to have an ending balance of $9,000. The income statement account that is pertinent to this […]

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Bookkeeping

What are Fixed Assets Definition, Characteristics and Examples

The asset’s value decreases along with its depreciation amount on the company’s balance sheet. The corporation can then match the asset’s cost with its long-term value. A company’s intangible assets and fixed assets contribute to its overall value, but they’re different categories of assets. This section discusses the fundamental differences between fixed assets and intangible […]

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Bookkeeping

Accounting Basics: Assets, Liabilities, Equity, Revenue, and Expenses

Below we dive into defining deferred revenue vs deferred expenses and how to account for both. A prepayment adjusting entry would be noted on the books for January. You also need to enter a credit of $4800 to the deferred revenue account. The subscription for monthly accounting service is considered a short-term liability on the […]

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Bookkeeping

If A Late Fee Is 10% Per Annum, How Is That Calculated On A Monthly Basis? Blurtit

Before you use the formulas or the calculator, you should determine whether the interest rate in question is a simple or a compound interest rate. Similar to the market for goods and services, the market for credit is determined by supply and demand, albeit to a lesser extent. When there exists a surplus of demand […]

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Bookkeeping

Cash Accounting Revenue Recognition for Subscription Businesses

Those who have paid a fee to join a club or organization are typically more likely to be loyal to that company and its products or services. This loyalty can lead to repeat business and word-of-mouth referrals, both of which are essential for long-term success. The cash increase reflects the cash received from the customer […]

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Bookkeeping

Contingent Liability: Meaning, Accounting Treatment and Examples

Definition of Contingent Liability A contingent liability is a potential liability that may or may not become an actual liability. Whether the contingent liability becomes an actual liability depends on a future event occurring or not occurring. There is only one scenario where a provision will not be recorded in the books of accounts. According […]