Bookkeeping
FOB Shipping Point means the buyer is responsible for shipping and must pay and record for shipping. Note that Figure 6.10 considers an environment in which inventory physical counts and matching books records align. This is not always the case given concerns with shrinkage (theft), damages, or obsolete merchandise. Both returns and allowances reduce the…
Corporations usually account for stock dividends by transferring a sum from retained earnings to permanent paid-in capital. The amount transferred for stock dividends depends on the size of the stock dividend. For stock dividends, most states permit corporations to debit Retained Earnings or any paid-in capital accounts other than those representing legal capital. In most…
Generally, tax returns and return information are confidential, as required by Internal Revenue Code section 6103. If the applicant is a dependent under 18 years of age, his or her parent or court-appointed guardian can sign if the child can’t sign. The parent or court-appointed guardian must type or print his or her name in…
This amount is then added to the opening cash balance to derive the closing cash balance. This amount will be reported in the balance sheet statement under the current assets section. This is the final piece of the puzzle when linking the three financial statements. The first section of the cash flow statement covers cash flows…
Owning a home is a keystone of wealth… both financial affluence and emotional security.