What Are Gross Wages?

 Posted on Posted on: 04.09.2023Categories Income Statement

It is the total amount you as the employer owes the employee for work during one pay period. Gross pay includes regular hourly or salaried pay and it also includes any overtime paid to the worker during the pay period. Peter’s wages before taxes and deductions are his hourly pay plus his tips collected.
Read more about when overtime pay is required for salaried employees. The wage an employee is paid before taxes and deductions is their gross salary. Net salary is the pay an employee rece […]

How To Prepare A Statement Of Retained Earnings For Your Business

 Posted on Posted on: 04.09.2023Categories Business Accounting Blog

It is calculated over a period of time and assesses the change in stock price against the net earnings retained by the company. Retained earnings are the portion of a company’s cumulative profit that is held or retained and saved for future use. Retained earnings could be used for funding an expansion or paying dividends to shareholders at a later date. Retained earnings are related to net income because it’s the net income amount saved by a company over time. (more…) […]

Basic Accounting Principles

 Posted on Posted on: 04.09.2023Categories Business Accounting Blog

For assessing materiality of an item, accountants not only take into account the individual amounts but also the cumulative effect of all immaterial amounts. For example, each of fifteen items may be immaterial when considered by itself. However, the combined effect of fifteen items may be material when seen together. Practically speaking, an auditor can’t test every transaction, but he or she will conduct more extensive testing in areas that present a greater risk of material misstatemen […]

Can A Capital Loss Carry Over To The Next Year?

 Posted on Posted on: 04.09.2023Categories Income Statement

Tax-loss harvesting and portfolio rebalancing are also a natural fit. In addition to keeping your portfolio aligned with your goals, a periodic rebalancing provides an opportunity to reexamine lagging investments that could be candidates for tax-loss harvesting. After you have decided which investments to sell to realize losses, you’ll have to determine what new investments, if any, to buy. Be careful, however, not to run afoul of the wash-sale rule. A tax haven or offshore (more…) […]

A Small Business Guide To Cost Recovery

 Posted on Posted on: 04.09.2023Categories Income Statement

He records the expected profit of $5,000 in the first period as the deferred gross profit. They made $6,000 in the second period, $5,000 in the third period and $4,000 in the fourth period. Rick records the profit for the second period as zero because they have not yet recovered the cost of the inventory.
Can you Section 179 39 year property? Until a technical correction is made, QIP is assigned a 39-year life and therefore is not eligible for bonus depreciation. Currently, section 179 […]

Posting To The Ledger Accounts

 Posted on Posted on: 04.09.2023Categories Business Accounting Blog

In the next column, list each account affected by the transaction on a separate line, and enter a short description of the transaction immediately below the list of accounts. The accounts being debited always appear above the accounts being credited, which are indented slightly. The posting reference column remains blank until the journal entry is transferred to the accounts, a process called posting, at which time the account’s number (more…) […]

Budgeted Balance Sheet Definition

 Posted on Posted on: 04.09.2023Categories Business Accounting Blog

You can create your own personal financial statements to help with budget planning and to set goals for increasing your net worth. Paid-in-Capital – for this, we use last years’ closing balance of paid-in-capital, as well as cash budget.
Peggy James is a CPA with over 9 years of experience in accounting and finance, including corporate, nonprofit, and personal finance environments.Ending Retained Earnings is $1,135,000 ($400,000 + 855,000 – 120,000).Remember that the financial budget is a […]

General And Administrative Expenses Sg&a Expense List

 Posted on Posted on: 04.09.2023Categories Income Statement

This includes administrative expenses such as subscriptions, employee salary and benefit packages, tuition reimbursements, continuing education and related travel expenses, fees paid to professional service providers, office supplies and professional membership dues. One of the most common administrative expenses that businesses incur is rent. A company might use offices, workspaces, warehouses and other facilities where (more…) […]

The Audit Procedures For Loan And Advances

 Posted on Posted on: 04.09.2023Categories Business Accounting Blog

This means that failing to spend 75% of the loan amount on payroll costs will reduce the amount of forgiveness but not render the borrower ineligible for forgiveness. Additionally, the amount of forgiveness is based on the amount the borrower spends on payroll, and not on the total amount borrowed or spent. The Small Business Administration has released two new interim final rules providing additional guidance with respect to loan forgiveness and audits of loans under the Paycheck Protection Pr […]

Accounting Equation

 Posted on Posted on: 04.09.2023Categories Business Accounting Blog

Certain cost accounting formulas should be monitored on a regular basis in order to spot spikes or drops in the performance of an organization. These issues can then be investigated to see if remedial action should be taken, with the intent of enhancing profits. The most important cost accounting formulas are noted below. Find your business’s profit margin to determine the percentage of revenue you keep after taking care of expenses. The accounting equation shows you how much of your asse […]