by solreslab | Apr 20, 2023 | Bookkeeping
When a plant asset is purchased for cash, its acquisition cost is simply the agreed on cash price. This cost is objective, verifiable, and the best measure of an asset’s fair market value at the time of purchase. Fair market value is the price received for an item...
by solreslab | Mar 1, 2022 | Bookkeeping
Marketing Consulting Service Inc. adjusts its ledger accounts at the end of each month. The unadjusted trial balance on December 31, 2015, and adjusting entries for the month of December are given below. Once all balances are transferred to the adjusted trial balance,...
by solreslab | Oct 27, 2021 | Bookkeeping
The permanent account to which the balances of all temporary accounts are closed is the retained earnings account in the case of a company and the owner’s capital account in the case of a sole proprietorship. Your closing journal entries serve as a way to zero...
by solreslab | Sep 3, 2021 | Bookkeeping
Contra equity is a general ledger account with a debit balance that reduces the normal credit balance of a standard equity account to present the net value of equity in a company’s financial statements. Examples of equity contra accounts are Owner Draws and...
by solreslab | Mar 24, 2021 | Bookkeeping
X receives the cash from the new shareholders and also grants them equity in the company. To make the Accounting Equation topic even easier to understand, we created a collection of premium materials called AccountingCoach PRO. Our PRO users get lifetime access to our...
