Cr: Accounts receivables/note receivables Inventory and cost of goods sold Journal Entry ➢Closing entries to record COGS – Periodic method Dr: COGS Dr: Inventory, ending Dr: Purchase allowance Dr: Purchase returns Dr: Purchase discount Cr: Purchases Cr: Freight-in Cr: Inventory, beginning ...
Journal Entries for Asset Disposals Thejournal entriesrequired to record the disposal of an asset depend on the situation in which the event occurs. Let’s consider the following example to analyze the different situations that require an asset disposal. ...
First, for the sake of simplicity, let’s assume that as of the start of business on January 1, there were only two general ledger accounts with balances: the checking account and the owner’s capital account. All journal entries and ledger accounts are expressed in dollars, but the dollar...
First, for the sake of simplicity, let’s assume that as of the start of business on January 1, there were only two general ledger accounts with balances: the checking account and the owner’s capital account. All journal entries and ledger accounts are expressed in dollars, but the dollar...
When a business makes a sale or provides services on account, it needs to record the transaction in its books using journal entries. Journal entries are used to show the impact of the transaction on different accounts. Let’s take an example of a business selling goods on account. In this...
For instance, if a company sold inventory for $125 cash but only purchased it for $75, then the perpetual inventory system will record two journal entries which would be sales and the cost of the sale. Sales $125 (cost of what the item sold for) Cost $75 (cost of what the retailer...
Difference between journal entries for discarding the asset vs selling the asset: When an asset is discarded, there is no cash inflow. The book...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question...
Capitalized interest is US GAAP term that refers to the part of interest expense that is capitalized as part of the cost of asset. IFRS uses the term borrowing costs for costs incurred in relation to a debt used for construction of the asset.
We now turn to the accounting and journal entries for stock options, which are a bit more complicated. 2. Stock Options Example On January 1, 2018, Jones Motors issued 900,000 stock options to employees The exercise price of the options is $10 per share. Jones Motors current share price ...
1. Can I take 1/2 year depreciation in 2018 for the equipment? 2. What does the GJ entry look like to recapture the section 179, post the sale and recognize the gain on the difference in depreciation amounts? TIAQuickBooks Desktop Cheer...