What is the journal entry rule? How to record accounts of asset, liability, equity, revenues, and expenses? Is it appropriate to calculate depreciation using two different methods? Explain why or why not. How to calculate a balance sheet from one year to the next?
When a company makes a transaction (buying, selling, payment, etc.), it writes down that transaction in its first book called a journal. A journal has a simple record of all the company’s transactional activities. Each record in that journal is called a journal entry. Large companies use...
To make a journal entry for accounts payable, you take an invoice for inventory or services already received and debit the expense and credit accounts...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our experts can answer your tough...
Explain the two methods to amortize the bond premium and discount. Give example journal entries for the two different amortization methods. Explain the process of establishing new accounts for fixed assets that will be depreciated like equipment. Why is accumulated depreciati...
Non-cash expenses– Adjusting journal entries are also used to record paper expenses like depreciation, amortization, and depletion. These expenses are often recorded at the end of period because they are usually calculated on a period basis. For example, depreciation is usually calculated on an an...
You will see that theFA Error Entry No.field has been filled in. On theHometab, choosePostto post the journal. The lines are posted as FA error ledger entries. See Also Tasks Concepts Depreciate or Amortize Assets Calculate Depreciation ...
A starting balance is the amount of funds in an account at the beginning of a new fiscal period. It allows you to see the balance of the...
How to calculate statement of cash flows without journal entry? How are the income statement, balance sheet, and cash flow statement interrelated? A company paid $1,125 cash for operating expenses. How does this transaction affect the accounting equation?
Debit Cash and Accumulated Depreciation According to theUniversity of Minnesota, you'll debit Cash in a new journal entry to record the amount of the sale of the capital asset. For example, a business that sold its company truck would enter $8,000 in the debit column as part of the journ...
The journal entry to record an impairment is a debit to a loss, or expense, account and a credit to the related asset. Acontra assetimpairment account, which holds a balance opposite to the associated asset account, may be used for the credit in order to maintain thehistorical costof the...