Accounting Instruction

Accounting Instruction

Accounting Comic, Accounting Cartoon, Accounting Joke
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Corporation comprehensive problem purchase of insurance where we will enter the journal entry related to the purchase of insurance. We will journalize the journal entry to the general journal, post the accounting transaction to the general ledger, and create the trial balance from the general ledger. The journal entry will debit prepaid insurance, an asset, and credit cash. We do not debit insurance expense because we have not yet consumed the insurance and therefore should not record an expense according to the matching principle, one of the core accrual principles related to when to record expenses. We will record insurance expense at the end of the period with the use of adjusting entries, debiting insurance expense and crediting prepaid insurance, increasing the expense and decreasing the asset.
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Accounting Comic, Accounting Cartoon, Accounting Joke
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Corporation comprehensive problem recording the earning of revenue on account. In other words, we will record the journal entry for revenue earned for doing work, but for which cash has not yet been received. We will enter the accounting journal entry into the general journal, then post it to the general ledger, and create the trial balance from it. The journal entry will include a debit to accounts receivable and a credit to cash.
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Accounting Comic, Accounting Cartoon, Accounting Joke
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Supplies purchase on account for a corporation will record the purchase of supplies with no cash. We will enter the accounting journal entry for supplies in the general journal and then post the accounting transaction to the general ledger, that will be used to generate the trial balance. We will debit the asset supplies and credit the liability of accounts payable. There will be no effect on net income because we have not yet used the supplies and therefore will net expense it in accordance with the matching principle. We will reduce the asset of supplies and record the related expense during the adjusting process.
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Supplies purchase on account for a partnership will record the purchase of supplies with no cash. We will enter the accounting journal entry for supplies in the general journal and then post the accounting transaction to the general ledger, that will be used to generate the trial balance. We will debit the asset supplies and credit the liability of accounts payable. There will be no effect on net income because we have not yet used the supplies and therefore will net expense it in accordance with the matching principle. We will reduce the asset of supplies and record the related expense during the adjusting process.
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Accounting Comic, Accounting Cartoon, Accounting Joke
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Corporation accounting comprehensive problem will record a journal entry related to the purchase of equipment for cash. We will enter the accounting journal entry into the general journal, post it to the general ledger, and create the trial balance from the general ledger. We will debit equipment and credit cash.
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Accounting Comic, Accounting Cartoon, Accounting Joke
Form more accounting information see website
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Preferred stock dividend example problem will discuss the process for determining the amount of a dividend to be paid to the preferred stock holders as compared to the common stock holders. Preferred stock holder get paid before common stock holders but have a limit to the amount they will receive. In a corporation the board of directors can determine the amount of dividend to give but has less control over how it will be distributed. Any dividend decided on will generally need to be paid first to the preferred stock holders before going to the common stock holder. The preferred stock holder typically to not have voting writes in the company.
For more accounting information see website.
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Accounting Comic, Accounting Cartoon, Accounting Joke
Form more accounting information see website
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Accounting Comic, Accounting Cartoon, Accounting Joke
Form more accounting information see website
http://accountinginstruction.info/courses/

Accounting Comic, Accounting Cartoon, Accounting Joke
Form more accounting information see website
http://accountinginstruction.info/courses/

Accounting Comic, Accounting Cartoon, Accounting Joke
Form more accounting information see website
http://accountinginstruction.info/courses/

Accounting Comic, Accounting Cartoon, Accounting Joke
Form more accounting information see website
http://accountinginstruction.info/courses/

Accounting Comic, Accounting Cartoon, Accounting Joke
Form more accounting information see website
http://accountinginstruction.info/courses/

Accounting Comic, Accounting Cartoon, Accounting Joke
Form more accounting information see website
http://accountinginstruction.info/courses/

Accounting Comic, Accounting Cartoon, Accounting Joke
Form more accounting information see website
http://accountinginstruction.info/courses/

Accounting Comic, Accounting Cartoon, Accounting Joke
Form more accounting information see website
http://accountinginstruction.info/courses/

Accounting Comic, Accounting Cartoon, Accounting Joke
Form more accounting information see website
http://accountinginstruction.info/courses/

We will discuss stock dividends and stock splits, similar but different processes.

Stock dividends are similar to normal dividends in that the corporation is giving part of its earnings to the stockholders, to the owners. We will have a date of declaration where we record the dividend and a liability and will then issue the stock dividend in the future. The difference is that we will be giving stockholders stock instead of cash for the dividend. The journal entry for the stock dividend at the time of declaration is a debit to retained earnings or dividend and a credit to stock dividend payable, a liability. At the time of payment we will issue the stock dividend and reduce the liability account.
Stock splits are a bit different in that each stock holder will receive some increase in stock, usually in a ration format. for example if there was a 2 for 1 stock split and we had 4 stock before the stock split we would have 8 stocks after the stock split.
The stock split does not change the percentage ownership. The stock split also does not change the capital account balances. The stock dividend will decrease the par value and increase the number of shares.

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Created 2 months ago.

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CategoryBusiness & Finance