Partnership Closing Process – Journal Entries for The Closing Process of Partnership Entity

The closing process for a partnership entity is much the same as any other entity except for the final step, the closing of net income to the capital account. It is important to go through the entire closing process, however, so that know all the steps. Many partnership example problems well ask us to close… Continue reading Partnership Closing Process – Journal Entries for The Closing Process of Partnership Entity

Payroll Periods and Time Frames

We will discuss payroll pay periods that companies could use to process payroll. Companies could process payroll monthly, weekly, biweekly, and semimonthly. It is useful to know the number of pay period in a year so we can calculate payroll and make comparisons between hourly wages and salary wages. For more accounting information see website:… Continue reading Payroll Periods and Time Frames

FUTA, SUTA Workers Compensation – Financial Accounting

We will discuss Fedural Unemployment Tax Act FUTA and State Unemployment Tax Act SUTA. We discuss these two payroll accounting acts together because they are closely related. Although the states have their own write to create taxes for their state the federal FUTA law uses state SUTA as part of the federal calculation. For more… Continue reading FUTA, SUTA Workers Compensation – Financial Accounting

Change In Estimates – Financial Accounting

We will discus the accounting for a change in a financial accounting estimate related to depreciation. The calculation of depreciation is an estimate of the cost allocated to the useful life. There are a few components of the calculation that are estimates that can change as we get better information over time. One component of… Continue reading Change In Estimates – Financial Accounting

Allowance Method % Accounts Receivable vs % Sales Method u

We will compare the percentage of accounts receivable to the sales method for calculating the allowance for doubtful accounts and bad debt expense. Under the allowance method we need to calculate the the estimated accounts receivable to be uncollectible and the bad debt expense for a period. We can use either a balance sheet approach… Continue reading Allowance Method % Accounts Receivable vs % Sales Method u

Allowance Method VS Direct Write Off Method – Financial Accounting

We will compare and contrast the allowance method and the direct write off method for dealing with accounts receivable. Accounts receivable is an asset but it is possible for it to be overstated by the amount of receivable not collectible. We could weight until we determine these receivables to be collectible to writhe them off,… Continue reading Allowance Method VS Direct Write Off Method – Financial Accounting

QuickBooks Online 9.15 Bank Reconciliation Second Month

We will enter a bank reconciliation for the first second of operation in QuicKBooks Online. Bank reconciliation are one of the most important internal controls an accounting system can have. The biggest internal controls is the double entry accounting system itself. The use of accounting software like QuickBooks Online requires us to be in balance… Continue reading QuickBooks Online 9.15 Bank Reconciliation Second Month