Both cost and freight and free on board are legal terms in international trade. You will see these terms as part of the International Chamber of Commerce 's collection of global commerce terms, known as Incoterms. If goods are sold F.O.B. destination... Read more
Possible contingent liabilities are as likely to occur as not and remote contingent liabilities are extremely unlikely to occur . In this adjusting entry, the change in the expense is not recorded in the period of the sale. As discussed earlier, no r... Read more
For this example, the fictitious company, XYZ Inc., has $5,000 of capital at the beginning of the period. The owner, Jane Smith, added $1,000 of cash to paid-in capital contributions, and the business earned $2,000 from sales. The owner also withdrew... Read more
The $19 difference between the $469 interest expense and the $450 cash payment is the amount of the discount amortized. The entry on December 31 to record the interest payment using the effective interest method of amortizing interest is shown on the... Read more
The license will only apply to the event for which it is issued and cannot be used for any other event. Packing and crating that is subject to Colorado sales tax is any tangible personal property furnished to prepare tangible personal property purcha... Read more
Although term bonds have a low-interest return, they are relatively free of risk and they are tax exempt. Certain provisions within some term bonds provide the issuers of the bonds with the option of redeeming the bonds from the investors before the ... Read more
Temporary account balances do not have opening balances as they are zeroed out before the new period starts, for the new balances to flow in. These accounts include revenue accounts, expenses accounts, and withdrawal accounts. The assets, liabilities... Read more
A suspense account could also be a liability if it holds accounts payables that you don’t know how to classify. As the name suggests, a suspense account is an account that temporarily records amounts that are yet to have their proper accounts d... Read more
A person who receives goods or services from a business in credit or does not make the payment immediately and is liable to pay the business in the future is called a Sundry Debtor. Businesses use an account to track these transactions and they are c... Read more
For example, the general ledger account, Equipment, shows the historical cost of the total equipment owned by the firm. Since the company is using the perpetual method, a credit is made to Inventory.Jan. 31An adjusting entry is made to recognize insu... Read more
