While cash dividends have a straightforward effect on the balance sheet, the issuance of stock dividends is slightly more complicated. Stock dividends are sometimes referred to as bonus shares or a bonus issue. The $1,000,000 value of the dividend is determined by multiplying the 50,000 shares to be issued (10% × 500,000 outstanding shares) by $20 (market value of […]
You should classify a note receivable in the balance sheet as a current asset if it is due within 12 months or as non-current (i.e., long-term) if it is due in more than 12 months. State separately, in the balance sheet or in a note thereto, any item in excess of 5 percent of total […]
Content Create a Bookkeeping System To Track Your Expenses, Profits and Losses Make use of an accounting system Have Questions or NeedAnother Service Not Listed Here? Financial Reporting Services No matter how insignificant the charge seems to be, save every receipt. Learn about tax deductibles All you have to do is place your receipts into […]
As an individual, you may use an accountant only for submitting your taxes, which is handled by certified public accountants (CPAs), who must pass an exam to prove their mastery of accounting. Ethics is fundamental to accounting because so many people depend on honest and error-free financial statements. In 2002, several high-profile accounting scandals involving […]
See your Deposit Agreement and DisclosuresDeposit Agreement and Disclosures for additional information. Balance Connect® for overdraft protection is an optional service which allows you to link up to five eligible backup accounts and can help you avoid overdrafts and declined or returned items. When you do not have enough funds in your checking account to […]
Content The Accounting Equation How Does the Accounting Equation Differ from the Working Capital Formula? Corporation Transaction C7. Corporation Transaction C1 The Basics 1. Accounting Equation Why does the accounting equation matter? The increase to equity would affect three statements. The income statement would see an increase to revenues, changing net income . Remember that […]
Content MULTI-STEP INCOME STATEMENT EXAMPLE What about depreciation? Some FRS 102 requirements relevant to the income statement You can easily make great-looking and engaging financial statements in Excel using Zebra BI for Office. The add-ins allow you to quickly replace difficult-to-read data tables with visual reports that highlight the crucial information and present a compelling […]
Content T-Accounts and Ledgers Mini Quiz: Understanding T Accounts Why Do Accountants Use T Accounts? Trial Balances As previously mentioned, an account is the summary record of all transactions relating to a particular item in a business. Take a look at each of the journal entries above and compare them to each of the entries […]
Use the tables in the order shown below to determine the recovery period of your depreciable property. If you file Form 2106, and you are not required to file Form 4562, report information about listed property on that form and not on Form 4562. The depreciation figured for the two components of the basis (carryover […]
Content PnL Explained Summary Definition Compare P&L statements Operating earnings This method is commonly used by smaller companies as well as people who want to manage their personal finances. A company’s statement of profit and loss is portrayed over a period of time, typically a month, quarter, or fiscal year. The report lays out your […]
