Assume that the customer prepaid the service on October 15, 2019, and all three treatments occur on the first day of the month of service. We also assume that $40 in revenue is allocated to each of the three treatments. Assume, for example, that for the currentyear $7,000 of interest will be accrued. Recording Payroll…
A store owner will pay a fixed monthly cost for the store space regardless of how much goods are sold. Let’s say your business sold $2,000,000 in product during the first quarter of the year. With the imprint of the Contribution Margin Ratio on hand, managers can strategize effectively. Contribution Margin: What it is and…
One of the most commonly referenced accounts in the general ledger is the cash account which details how much cash is available. Regardless, most bookkeepers will have an awareness of the company’s financial position from day to day. Overall, determining the amount of time for each accounting cycle is important because it sets specific dates…
Unlike BVPS, market price per share is not fixed as it fluctuates based solely on market forces of supply and demand. In theory, BVPS is the sum that shareholders would receive in the event that the firm was liquidated, all of the tangible assets were sold and all of the liabilities were paid. However, its…
This can give you a good indication on demand for certain offerings, compared across different countries. If you sell 3D printers, you could search “buy 3D printer” and see how much people search for these words per month. CO—is committed to helping you start, run and grow your small business. Learn more about the benefits…
So, when you first make a prepaid expense payment, you record the entire amount as an asset. At the end of each successive accounting period, you can record the used-up portion of the prepaid expense as an expense. Prepaid expenses that need an adjusting entry usually include things like rent, insurance and office supplies. (…
For the past 52 years, Harold Averkamp (CPA, MBA) hasworked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com. For the past 52 years, Harold Averkamp (CPA, MBA) has worked as an accounting supervisor, manager, consultant, university instructor, and…
