What is a Warranty? A warranty is a promise from the product’s maker that the product will perform as promised. If it doesn’t, the manufacturer will fix it at no charge to the consumer. The majority of warranties are restricted since they do not cover damage caused by accidents, abuse, or other non-defective issues. Some …
Rent received in advance is the amount of rent received before it was due, but the landlord has yet to get the connected benefits equal to the advance obtained. The amount the landlord received from the tenant could not be fully recognized as rental income since the service is not provided yet. Because it is …
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One significant type of expense that an entity often incurs is the prepaid expense. To keep the accounting books accurate and up-to-date it is important to know how to record such expenses. This article is all about prepaid expenses, common examples, and most importantly, the steps to record them. Prepaid expenses are the future expenses …
How to Create a Prepaid Expenses Journal Entry? (Step by Step) Read More »
Apart from different financial sources, the owner of the company also invests to either start-up or expand the operations at the stage of maturity. The owner’s contribution is what the owner invests to cover the business expenses either through personal funds or by transferring funds to a business account. In the world of accounting, the …
HOW DO YOU RECORD OWNER CONTRIBUTIONS AND INVESTMENT JOURNAL ENTRIES? Read More »
When a business does not own a premise to conduct its day-to-day operations, it may hire a property and make periodic payments against it. Such payments are considered rent. From an accounting perspective, rent can be defined as an expense or a cost of occupying/utilizing a property for a specific period. After the cost of …
RENT PAID IN ADVANCE: JOURNAL ENTRIES WITH EXAMPLES Read More »
A business can’t vouch and account for every small expense like a cup of coffee, taxi fare, smaller office supplies, etc. On the other hand, these expenses are unavoidable and must be carried out by the businesses. Therefore, a convenient, fair, and easily manageable method of vouching for small expenditures is necessary. Many small businesses …
Why Do Businesses Use Petty Cash Funds? 7 Reasons You Should Know Read More »
What are Office Supplies? Office supplies refer to items that companies use within office use. They include small stationery and similar materials that are crucial for administrative purposes. Usually, these materials differ in their usage from other goods or assets. Essentially, office supplies include items that companies regularly use for administrative work. There is no …
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Companies use various goods and products within their operations. These goods, known as assets, are crucial in helping companies generate revenues. Usually, companies classify assets based on how long they expect to use them. Furthermore, they distribute the cost of some of those assets under depreciation. Other resources may get expensed out directly without the …
How to Record Journal Entry of Office Supplies Bought on Credit? Read More »
Employees are one of the most crucial parts of the operations of most companies. They include individuals who provide services to a company in exchange for compensation. Usually, they work throughout the year and help in achieving organizational goals. Every once in a while, employees will also take time off work. This time off may …
Step by Step on How to Records Vacation Benefits Journal Entry With Example Read More »
Companies and businesses operate to achieve specific goals. These goals may differ from one company to another. On top of that, the steps these companies take to achieve those goals may also vary. Those steps constitute the business strategy a company follows. It includes a combination of the decisions taken and actions performed to achieve …
