Category Archives: Bookkeeping

Click in the box under Tag Name, and enter a tag label, i.e., EE (to represent employee transactions as discussed above). Click “Add,” and repeat to add any additional tags you need (like ER for employer transactions). I’m also including our Help articles for related references in managing your account and transactions in QuickBooks. Then they expect […]

A prominent example of this is taking place in stock exchanges, where high-frequency trading by machines has replaced much of human decisionmaking. People submit buy and sell orders, and computers match them in the blink of an eye without human intervention. So, what are the benefits of AI and how does it affect our day […]

If plants are completely different, it would be absurd to try to compare the maintenance costs. A coal mine will have very different maintenance costs compared to an electronics factory. If the reference period method of accrual is used, the holiday pay irregular hour workers and part-year workers receive will be their average pay over […]

The proportion of fixed versus variable costs that a company incurs (and how they’re allocated) can depend on its industry. Fixed costs are allocated in the indirect expense section of the income statement, which leads to operating profit. Depreciation is a common fixed expense that is recorded as an indirect expense. Companies create a depreciation […]

The overhead is attributed to a product or service on the basis of direct labor hours, machine hours, direct labor cost etc. The overhead absorption rate is calculated to include the overhead in the cost of production of goods and services. It’s used to define the amount to be debited for indirect labor, material and […]

At the end of the year, Stellar Toys will need to reconcile its applied overhead with its actual overhead. In this case, there is an overhead variance of $10,000 ($210,000 actual – $200,000 applied), meaning Stellar Toys has under-applied overhead. It will need to adjust its financial records to account for this difference. If a […]

When an investor mistakes in choosing a company, at best the investor will not make a profit, and at worst – lose all the money invested. To discover the standard estimation of typical stock, data is promptly accessible in the stock certificates. When economists look at capital, they are most often looking at the cash […]

Preferred stockholders generally do not have voting rights, though they have a higher claim on assets and earnings than common stockholders. For example, owners of preferred stock receive dividends before common shareholders and have priority if a company goes bankrupt and is liquidated. Finally, understanding a company’s capital stock can help investors determine if it is overvalued or undervalued relative to its […]

As the receipts are reviewed, the box must be replenished for what was spent during the month. The journal entry to replenish the petty cash account will be as follows. When the cash balance in the petty cash fund drops to a sufficiently minimal level, the petty cash custodian applies for more cash from the […]

Entries are needed to (1) establish the fund, (2) increase or decrease the balance of the fund (replenish the fund as cash is used), and (3) adjust for overages and shortages of cash. Petty cash is stored in a petty cash drawer or box near where it is most needed. There may be several petty […]