Category Archives: Bookkeeping

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 […]

We’ll review what each of these terms mean and why they’re important to understand as a home buyer and homeowner. Whether you’re a new homeowner or first-time home buyer, you may have heard the terms “assessed value” and “appraised value” thrown around by your loan officer or real estate agent. By providing your contact information […]

An assessor finds the assessed value of your home based on the market value, the appraised value or a uniform percentage of the two. Municipalities and counties employ an assessor to determine the tax-assessed value of the homes in their jurisdictions. In most states and municipalities, assessed value is calculated as a percentage of the […]

The Average Costing Method, also known as the weighted average cost method, is a popular inventory valuation technique. It calculates the cost of inventory items by averaging the total cost of goods available for sale over a specific period and dividing it by the total number of units available for sale. This method is particularly […]

If the S corporation is involved in one of the following activities as a trade or business or for the production of income, the shareholder may be subject to the at-risk rules. Certain U.S. persons that are the ultimate parent entity of a U.S. multinational enterprise group with annual revenue for the preceding reporting period […]

If any part of the adjustment is allocable to net short-term capital gain (loss), net long-term capital gain (loss), or net section 1231 gain (loss), attach a statement that identifies the amount of the adjustment allocable to each type of gain or loss. Figure the adjustment by subtracting the AMT deduction for depreciation from the […]