In this lesson we're going to cover the journal entry for purchasing an asset through our sample business,George's Catering. We'll first look at how this transaction affects the accounting equation and then work out the debit and credit entry. Check your understanding of this journal entry an...
➢ 如果是 sale of PPE → 计算 Gain/Loss on sale of PPE = Sales proceeds – carrying amount ➢ Recordimpairment loss Dr: Loss on impairment Cr: Accumulated depreciation ➢Revaluation model: write up asset Dr: PPE Cr: Revaluation surplus ➢ Intangible assets – amortization expense Dr: a...
Business transactions are usually recorded in two places. This is known as the double entry bookkeeping system, which is based on the concept that every transaction has an equal and opposite effect in two different places. For example, a purchase increases the company’s assets in terms of the...
was $2,000. Therefore, the total book value of the machinery was $1,000 (machinery value minus accumulated depreciation). However, the company agreed to sell the machinery for $1,500. Thus, Motors Inc. must recognize the gain from the sale. The journal entry for the disposal should be:...
Asset Accounting:Fixed assets are the tangible property of the Company. The company intends to hold the asset for a longer period of time to derive benefits from the use of the asset in the operations. The asset is depreciated over its useful life....
In the journal entry, we debit the impairment loss account or expense account and credit in the corresponding asset. For this example, the journal entry would be: Indicators of Impairment These are signs that help companies determine when to impair their assets. It usually happens when the carry...
In optimal career structures, entry-level employees (“associates”) compete for better-paid and more prestigious positions (“managing directors” or “partners”). The model provides new implications relating job prestige to compensation, employment, competition, and the size of the financial sector...
January 2, 2021 — Upon Exercise of Options Journal Entry Debits Credits Asset (Cash) –Option Proceeds1 $9.0 million APIC –Stock Options2 $4.5 million Common Stock & APIC –Common Stock $13.5 million 1Calculated as 900,000 shares * $10 per share.2Calculated as 900,000 shares * $...
Learn what accounts receivables (AR) are and understand their purpose in business. Explore different examples of AR and what the journal entry for...
An adjusting journal entry involves anincome statementaccount (revenue or expense) along with abalance sheetaccount (asset or liability). It typically relates to the balance sheet accounts for accumulated depreciation,allowance for doubtful accounts,accrued expenses,accrued income,prepaid expenses,deferred ...