The contributed capital (CC), beginning of retained earnings (BRE), and dividends (D) show the company’s transactions with the shareholders. It shows how the company shares profit with its shareholders or keeps money in retained earnings. The revenue (R) less expenses (E) show the net income on stockholder’s equity. This straightforward relationship between assets, liabilities, and…
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Therefore cash (asset) will reduce by $60 to pay the interest (expense) of $60. Drawings are amounts taken out of the business by the business owner. Company ZZK plans to buy office equipment that is $500 but only has $250 cash to use for the purchase. The major and often largest value assets of most…
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The ratio is used by lenders and creditors when deciding whether to extend credit to a borrower. A healthy business has working capital and the ability to pay its short-term bills. A current ratio of more than 1 indicates that a company has enough current assets to cover bills coming due within a year. The higher…
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Content How the EZ could cost you Choosing the Right Tax Form to File Health Insurance I received a Form 1099-G after I filed my return. What do I do? Form 1040-ES Forms The I-beam cursor allows you to select a field, a check box, a radio button, or an item from a list. Use…
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Content Operating Expenses: Overview, Definition and Examples Utilities AccountingTools How to Budget for Fixed and Variable Expenses Understanding Variable Costs What Are Operating Expenses? Raw materials are the direct goods purchased that are eventually turned into a final product. If the athletic brand doesn’t make the shoes, it won’t incur the cost of leather, synthetic…
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Content FreshBooks invoicing How many users can you have with a FreshBooks account? Mobile Device Computing Policy Accounts Payable Expenses Pricing and features The five most recently updated expenses appear at the top of the Expenses section. Individual expense records, which appear in a list below, contain fields for the vendor, category, date, source, client/project/description,…
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Content Do you care about Payment Reports? Want More Helpful Articles About Running a Business? Debit Memos as Internal Offsets Can you get rid of a tot odp swp cr memo charge? Cash Handling Guide Work, Master’s, Kids, Hobbies, & the CPA Exams: How Logan Did It All Internal offsets using debit memos Master Data…
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Content Why do you need to zero opening balance equity? What is the need for Opening Balance Equity in QuickBooks? To Change the Opening Balance in QuickBooks Using a Credit or Bank Account, follow these steps: Click on the video below to watch: How to clean up Opening Balance Equity in QuickBooks Online How to…
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Content Another example of retained earnings calculation Factors that can influence a company’s retained earnings Step 2: State the Balance From the Prior Year Can retained earnings be negative? What is the Statement of Retained Earnings? Example of Retained Earnings Calculation In this case, the company would need to take action to improve its financial…
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We’ll use a company called MacroAuto that creates and installs specialized exhaust systems for race cars. Here are MacroAuto’s accounting records simplified, using positive numbers for increases and negative numbers for decreases instead of debits and credits in order to save room and to get a higher-level view. This is the adjusted trial balance that…
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