Adjusting Entries: Definition, Types, and Examples

At the end of the accounting period, some income and expenses may have not been recorded or updated; hence, there is a need to adjust the account balances. For deferred revenue, the cash received is usually reported with an unearned revenue account. Unearned revenue is a liability created to record the goods or services owed […]

Rules of Debit and Credit

It is the side of the account – debit or credit – where an increase in the account is recorded. Understanding the normal balance of an account is essential for maintaining accurate financial records and preparing financial statements. It helps identify errors in the accounting system and ensures that financial transactions are recorded correctly. Residual […]

Salvage Value Formula + Calculator

Treat property as placed in service or disposed of on this midpoint. To determine if you must use the mid-quarter convention, compare the basis of property you place in service in the last 3 months of your tax year to that of property you place in service during the full https://www.bookstime.com/ tax year. If you […]