Categoria: Bookkeeping

Accounts payable would be a line item under current liabilities while a mortgage payable would be listed under long-term liabilities. Mortgage payable is a type of long-term debt for purchasing property for business activities. Long-term liabilities have higher interest rates due to the wide gap between the time of borrowing and repayment. In short, a […]

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As with an income statement, the statement of cash flows reflects a company’s financial activity over a period of time. It shows where a company’s cash comes from and how it’s used to pay for operations and/or to invest in the future. Given the complexity of some financial statements, it may help to create a […]

As with an income statement, the statement of cash flows reflects a company’s financial activity over a period of time. It shows where a company’s cash comes from and how it’s used to pay for operations and/or to invest in the future. Given the complexity of some financial statements, it may help to create a […]

Businesses typically need many different types of these assets to meet their objectives. In Liam’s case, the new silk-screening machine would be considered a long-term tangible asset as he plans to use it over many years to help him generate revenue for his business. Long-term tangible assets are listed as noncurrent assets on a company’s […]

This is done for an employee who handles many roles, but they all pay a different hourly rate. You take the average of the hourly pay of each job to get the rate of pay. Also, you calculate overtime based on the weighted overtime pay rate. Track the Number of Overtime Hours It lays out […]

Once the company becomes aware that the customer will be unable to pay any of the $10,000, the change needs to be reflected in the financial statements. In contrast to the direct write-off method, the allowance method is only an estimation of money that won’t be collected and is based on the entire accounts receivable […]

Content More opportunities for you to learn Why Bookkeeping is important for all business? Foundational Topics When will I have access to the lectures and assignments? Free Bookkeeping Courses List START A NEW CAREER In this course, instructors from LetsTute deliver in-depth content that covers the fundamentals of learning Bookkeeping. All up, there are just over 2 […]

The last closing entry reduces the amount retained by the amount paid out to investors. In a sole proprietorship, a drawing account is maintained to record all withdrawals made by the owner. In a partnership, a drawing account is maintained for each partner. All drawing accounts are closed to the respective capital accounts at the […]

Accrued revenue is recorded in the financial statements by way of an adjusting journal entry. The accountant debits an asset account for accrued revenue which is reversed with the amount of revenue collected, crediting accrued revenue. In double-entry bookkeeping, the offset to an accrued expense is an accrued liability account, which appears on the balance […]