In this lesson we're going to go through our previous example for our sample business,George's Catering, and work out the full journal entry for income when it is received immediately in cash. Check your understanding of this journal entry and lesson by taking the quiz in theTest Yourself!
In the example we just coveredGeorge's Cateringwas paid immediately in cash for providing the catering services. But in real life, this is not always the case. A lot of the time we only receive the cash much later. In accounting, this is calledaccrued income, and we have a specific way...
Though that’s not the most absurd example of over-taxation. Let’s not forget that thousands of French taxpayers have had tax bills that were greater than their entire income. Sort of like an Obama-style flat tax, but in real life rather than a joke. P.S. As I’ve previously noted...
While some researchers have concluded that rates of social mobility in the UK have remained relatively stable and have not increased during the postwar period, studies byGOLDTHORPEet al. (1980) have suggested that overall levels of upward mobility (including entry into the service class) may be ...
Journal entry:Dr. Unearned Revenue $20,000Cr. Revenue $20,000Accrued RevenueExample: If you are a manufacture of cars and I bought a car from you on Nov. 12, 20 19、02 for $3,000, but we agree that I pay you next year. You have earned the money because I took the car. But ...
ExampleAfter Paul’s Guitar Shop prepares its closing entries, the income summary account has a balance equal to its net income for the year. This balance is then transferred to the retained earnings account in a journal entry like this....
Then, create a journal entry or transfer the funds from an equity account to a bank account Here's how: Go to the Company menu and select Make General Journal Entries. Select the appropriate expense account in the first Account column. In the Debit column, type in the amount of the trans...
Typical journal entry: Accounts receivable* 70,372 Sales revenue 70,372 * For simplicity, I assume that all sales were on account. Cost of goods sold: The cost of inventory sold during the sale. These costs may reflect the costs incurred to purchase the inventory if the company is a resel...
For example household income and health status have a positive effect on happiness, whereas unemployment has a negative effect. The relationship between age and happiness is insignificant. We caution that such an interpretation falls short of the most natural way of interpretation in terms of ...
Income Statement (损益表）Revenues (销售收入）-Cost of goods sold (COGS) （产品销售成本）= Gross Profit （毛利润）-Expenses （费用）= Earnings Before Tax （税前收益）-Tax （所得税）= Net Income （净收益）The purpose of firm is to earn income for investors through selling goods or ...