A journal entry is used to record a business transaction in the accounting records of a business. A journal entry is usually recorded in the general ledger; alternatively, it may be recorded in a subsidiaryledgerthat is then summarized and rolled forward into the general ledger. 2. What is a...
Impairment is when businesses find that their asset’s reported value (in accounting books) is higher than the amount they will get if they sell the asset. In such a case, the company declares the asset as “impaired” and reduces its value in its accounting records. It can either be a ...
Journal Entry Debits Credits Retained Earnings –SBC Expense1 $1.5 million APIC –Stock Options2 $1.5 million 1Calculated as 300,000 shares * $5 per share. This is an expense recognized on the income statement. It reduces retained earnings.2To balance the balance sheet, APIC for stock optio...
Swiss Re has agreed to sell iptiQ’s European P&C business to Allianz Direct, in line with its strategic decision to withdraw from iptiQ. Allianz Direct, the pan-European online insurer of Allianz Group, will take over the risk carrier based in … ...
Generali to remain in charge of decisions over how to allocate its own clients’ savings under the asset management deal with France’s BPCE, the insurer said, addressing concerns raised by Italy’s government and two leading investors. In a bid to … Dutch Willing to Help Insurers Invest in...
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:...
received the payment, you need to give them a payment receipt and also record the payment entry in the system. While recording the payment journal entry, you need to debit the cash to show an increase due to the payment and credit accounts receivable to reduce the amount owed by your ...
000. Since he used $2,000 in cash as a down payment, he credits the asset account, cash, for the decrease. The mortgage represents a liability. Because increases to liabilities are recorded as credits, Sunny credits the balance owed of $18,000. This accounting entry also keeps the ...
If you enter the same account for each gain and loss account, Oracle Assets creates a single journal entry for the net gain or loss.Prior Period RetirementExample: You place an asset in service in Year 1, Quarter 1. The asset cost is $4,000, the life is 4 years, and you are using...
A car is an asset so the journal entry for it will be similar for the purchase-via-loan of other assets like workshop equipment. The difference between bank loans and vehicle loans is that: with bank loans the business receives actual money into the bank account and ...