Kategori: Bookkeeping

  • What Is an Expense Account? Definition, Types & Tips

    Additionally, costs incurred for expanding a production facility, developing new software, or acquiring intellectual property rights would also fall under the category of capital expenses. These expenditures are crucial for the long-term growth and sustainability of a business and are often carefully evaluated and planned. Now that we have a clear understanding of expense accounts,…

  • How Are Inventories Reported on Financial Statements?

    Amanda Bellucco-Chatham is an editor, writer, and fact-checker with years of experience researching personal finance topics. Specialties include general financial planning, https://www.kelleysbookkeeping.com/an-example-of-a-bookkeeping-entry-of-buying-on/ career development, lending, retirement, tax preparation, and credit. Suppose Lisa runs a beauty store and decides to purchase lipstick to sell to customers. Finished goods inventory is inventory that has been completely built…

  • The Beginning & Ending Inventory on an Income Statement

    Many companies will opt to use the FIFO inventory method to offload their older stock first. As a result, the calculations for an inventory’s cost of sales will reflect the movement and value of the goods. This inventory accounting method is one most often used by businesses, especially ones with perishable inventories. Changein closing inventory…

  • 9 Best Online Bookkeeping Services 2024

    Are you going back and forth with a prospective bookkeeper trying to nail down a time to talk, or do they use a scheduling app? If they’re not efficient about this stage of doing https://www.bookstime.com/ business, this may be a sign that they won’t be efficient once you are a client. This way you don’t…

  • Amortization of Bond Discount: Definition, Calculation, and Formula

    Suppose, for example, a business issued 10% 2-year bonds payable with a par value of 250,000 and semi-annual payments, in return for cash of 241,337 representing a market rate of 12%. Suppose, for example, a business issued 10% 2-year bonds payable with a par value of 250,000 and semi-annual payments, in return for cash of…

  • What are Real Accounts Used in Accounting? Medium

    At year-end, you carry over your permanent accounts that are now your retained earnings into the new year. Your permanent accounts become your beginning balances at the beginning of the new period. And, your beginning balance consists of the amounts in your cash, fixed assets, and inventory accounts. Your real accounts reflect your company’s financial…