General Journal Examples Entries and Calculations

A Journal Entry is a formal method of recording transactions using debits and credits. The recording of journal entries needs to follow the debit and credit roles. For example, expenses are increasing in debit, and revenues are increasing in credit. The same as a general journal, the special journal is used in the manual accounting […]

Quickbooks Online Vs Desktop

Of course, it is safer to first check if QuickBooks accepts payment in the currency you deal with. In this article, we will discuss what QuickBooks is and how it works so that you can understand the different ways in which it can help you save time and be on top of your financial statements. […]

Straight-Line Method of Assets Depreciation Explanation & Formula

It is most likely to be used when tracking machine hours on a machine that has a finite and quantifiable number of machine hours. The depreciation expense calculated by the straight line depreciation method may, therefore, be greater or less than the units of output method in any given year. For passenger automobiles and other […]

9 common cash flow problems and how to solve them

Even with great forecasting, your business may encounter unexpected expenses. From changes in weather to changes in laws to an international pandemic, you can’t plan for everything. Overspending on inventory that isn’t being sold fast enough can lead to cash flow problems. A U.S. Bank study reported that 82% of business failures are due to […]

Accounts Payable Turnover: Definition, Formula & Calculator

You can automatically or manually compute the AP turnover ratio for the time period being measured and compare historical trends. The Accounts easily forecast and fund cash flow gaps measures the number of times a company pays its accounts payable during a given period, typically a year. It is an essential financial metric as it […]

Profit Margin: How to Calculate It, What It Tells You

Excluded from this figure are, among other things, any expenses for debt, taxes, operating, or overhead costs, and one-time expenditures such as equipment purchases. The gross profit margin compares gross profit to total revenue, reflecting the percentage of each revenue dollar that is retained as profit after paying for the cost of production. The most […]

What Is a Retainer for a Lawyer?

It is important to note that all parties involved should always sign the fee agreement. In fact, a fee agreement that both parties do not sign may not be enforceable against either party. Further, a signed copy of the fee agreement should be kept by both parties in case a legal dispute arises regarding the […]

Recording royalties by journal entry

Jamison operates hundreds of proprietary hydraulic presses that are designed to significantly reduce production time. In the press, carbon crystallizes into microscopic diamonds under immense pressure and heat, which are then cemented together in tungsten-carbide. The resulting product is ground to specifications and brazed onto drill bits. Jamison has decided to license its proprietary diamond […]

Contribution Margin: Formula, Meaning, How to Improve

Let’s now apply these behaviors to the concept of contribution margin. The company will use this “margin” to cover fixed expenses and hopefully to provide a profit. The key component of the contribution per unit calculation that can cause difficulty is the variable cost. This should only include those costs that vary directly with revenues. […]

Dollar-Value LIFO Method Calculation

Once the actual increase is computed, it is then adjusted for current year prices and then we can know the total value of ending inventory under dollar-value LIFO. Under Dollar-Value LIFO, COGS tends to be higher because it reflects the most recent, and typically higher, costs of inventory. This increase in COGS reduces the gross […]