Keep in mind that your payment method and timesheet are not relevant, and the overtime pay is always calculated on a weekly basis even if you pay your workers bi-weekly. However, time and a half pay specifically means being paid at a rate of 1.5 times your regular hourly wage for overtime hours. In contrast,   Read More …

Passing the journal entries is very much required as they allow the business organization to sort their transactions into manageable data. A journal entry records financial transactions that a business engages in throughout the accounting period. These entries are initially used to create ledgers and trial balances. Eventually, they are used to create a full   Read More …

These assets are a subset of the fixed assets classification, which includes such other asset types as vehicles, office equipment, and intangible assets. Plant assets fulfill the usual criteria for a fixed asset, which means that their initial cost exceeds the capitalization limit of the entity, and they are expected to be used for at   Read More …

A debit invoice, also called a debit memo or debit note, is issued by a business that needs to increase the amount a client owes to the business. Debit invoices are useful to small businesses and freelancers when they need to make slight adjustments to an existing bill. Charges on an invoice must be approved   Read More …

(a) Prepare the partnership’s trading and income statement and statement of division of profit for the year ended 31 March 20X3 (9 marks) b. Write up the partners’ current accounts for the year ended 31 March 20X3 (3 marks) (12 marks in total). A partnership is a type of business organizational structure where the owners   Read More …

The amount of sales discount is deducted from the gross sales to calculate the company’s net sales and recorded in a separate sales discount account. Sales Allowances contra revenue account records the value of reductions in selling price granted to buyers who agreed to accept a defective product instead of returning it to the seller.   Read More …

Parts 2 – 6 illustrate transactions involving a sole proprietorship.Parts 7 – 10 illustrate almost identical transactions as they would take place in a corporation.Click here to skip to Part 7. For the past online bookkeeping jobs from home 52 years, Harold Averkamp (CPA, MBA) has worked as an accounting supervisor, manager, consultant, university instructor,   Read More …

Note that all of the above component budgets may not be included in the master budget of every business. Some of these such as production budget and cost of goods manufactured budget are not need by a non-manufacturing business. We begin the budget process by discussing the planned operating budget or projected income statement. Financial   Read More …

All of our content is based on objective analysis, and the opinions are our own. In many cases, however, its useful economic life is less than 17 years. The legal costs of successfully defending a patent are also capitalized as part of its cost. Initial recognition: computer software Where the carrying value of goodwill cannot   Read More …

This system of accounting is named the double-entry system because every transaction has two aspects, both of which are recorded. This single-entry bookkeeping is a simple way of showing the flow of one account. To illustrate how single-entry accounting works, say you pay $1,500 to attend a conference. It is recommended to use an accountant   Read More …