When we set the budget too high, it will impact the total cost as well as the selling price. The standard number of hours represents the best estimate of a company’s industrial engineers regarding the optimal speed at which the production. Read more
A purchases journal is a special journal used to record any merchandise purchased on account. The entries in this journal are made based on the invoice received from the supplier on the purchase date. The amount of detail provided in a. Read more
Recording these entries in your books helps ensure your books are balanced until you pay off the liability. If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro. Read more
Any difference between invoice price and reduced price (i.e., the price that is finally received from customer) is known as allowance. This allowance should not be confused with sales discount which is initially entered in cash receipts journal at the time. Read more
The main difference is that assets are valued at net realizable value and can be increased or decreased as values change. The debit, merchandise inventory (ending), is subtracted from that total to determine the balancing debit to the cost of goods. Read more
When a company issues common shares, it is selling ownership in the company to investors in exchange for cash. These investors then become shareholders, and their ownership stake in the company is based on the percentage of shares they hold. Issuing. Read more
Whether you are the lender or the borrower, you must record accrued interest in your books. This payment represents the coupon payment that is part of the bond. The interest expense is the bond payable account multiplied by the interest rate.. Read more
A share dividend distributes shares so that after the distribution, all shareholders have the exact same percentage of ownership that they held prior to the dividend. As soon as the Board of Directors approves and announces a dividend (on the declaration. Read more
This would fall under the category of the company’s trade payable. Other accounts payable generally refers to all of the short-term debt obligations of the company. As a result, such a transaction would increase the credit balance of your accounts payable.. Read more
After that, the mug is sent to the coloring department, where the mug is painted the correct color. Next, the colored mug is sent to the lid department, where plastic lids are created and placed on the mug. Finally, the mug. Read more