The  $ 2,200 prepaid expense represents 11 months of insurance protection that remains as a future benefit. Also, when an advance payment is made to cover a certain number of months, as the months go by, a certain amount of deferred revenue is earned. This amount that is earned is what is recorded as the […]

Even if it is not, it allows companies to estimate their performance for that specific period. The periodicity assumption forms the basis for periodic financial statement reporting. The financial statements created on the basis of the periodicity assumption aid in assessing the performance of organizations across certain time periods. This assumption is used to create […]

On December 30, 2021, a client sent you a check for interior decorating services you provided to them. You must include the amount of the check in income for 2022. This section identifies some of the excise taxes you may have to pay and the forms you have to file if you do any of […]

The amount of fixed assets a company owns is dependent, to a large degree, on its line of business. Large capital equipment producers, such as farm equipment manufacturers, require a large amount of fixed-asset investment. Service companies and computer software producers need a relatively small amount of fixed assets. Mainstream manufacturers typically have 25% to […]

Accurate bookkeeping is essential to your company’s long-term viability. Experienced, affordable, and reliable, we serve a variety of industries and clients from self-employed home-based business owners mental health billing to small and medium-sized businesses with employees. When you outsource your bookkeeping services to us you get one on one personalized service and state of the […]

If you’re holding your rental property in an LLC, the bank will require copies of your incorporation documents and your federal tax identification number. Users can customize the features they use, making it suitable for any experience level. However, enterprise-level landlords and their accountants will benefit more than small and medium-sized landlords due to the […]

Try to find one that offers you secure, immediate access to your financial reporting in an accounting software you feel comfortable in. The two require different levels of expertise and effort, and as you can imagine, the costs of full-service accounting are higher. Outsourced bookkeeping refers to the assigned task of daily recording financial activities […]

When he decided to pursue a master’s in accounting, friends suggested he check out UT Dallas. The scholarship will help to relieve some of her financial pressure, she added, and will allow her to concentrate on her studies. TEI’s $2,000 scholarships were awarded to graduate student Brandon Whang and senior Alisa Lipinski, a member the […]

Equipment is also quite valuable and crucial to the operation of any organization. It propels operations forward and allows a company to generate money on a consistent basis. Equipment is also one of the most varied forms of plant assets since it differs based on the industry or the specific demands of each company. Every […]

Again, according to the chart below, when we want to decrease an asset account balance, we use a credit, which is why this transaction shows a credit of $250. In this journal entry, cash is increased (debited) and accounts receivable credited (decreased). Revenue accounts are credited with the inflow of money earned from selling goods […]