Bookkeeping

The closing valuation of work-in-progress in the old period is added to the cost of the new period and an average rate obtained which tends to even out price fluctuations. In calculating the equivalent production opening units will not be shown separately as units of opening work-in-progress are taken to be included in the units completed and transferred. The variations in calculating equivalent p...

Equivalent Unit of Production (EUP) is a measure used in manufacturing and accounting to determine the total number of fully completed units that could have been produced from work in progress during a given period. In manufacturing, a product typically goes through multiple stages of production, and each stage may produce partially completed units of production that need further processing to bec...

With this method, your Delaware Franchise Tax is calculated based on authorized shares, issued shares, and total gross assets. A company’s income is not a factor in the calculation of Delaware Franchise Tax. Even companies with no business activity must file the annual report and pay franchise tax to maintain Good Standing status. These Delaware LLC taxes are based on your income at the then-...

The journal entry reflects that the supplier recognized the transaction as revenue because the product was delivered, but is waiting to receive the cash payment. Hence, the debit to the accounts receivable account, i.e. the manufacturer owes money to the supplier. While the revenue has technically been earned under accrual accounting, the customers have delayed paying in cash, so the amount sits a...

Looking at the details of your accounts receivable is crucial for determining why the numbers are going up or down. The accounts receivable classification includes any receivables owed to an organization. This is not the case for trade receivables, which are a subset of accounts receivable. Trade receivables are only those receivables generated through the ordinary course of business, such as amou...

Running a manufacturing company while managing its books is a challenging prospect. Manufacturing involves a significant amount of cost accounting, which is a notoriously complex subject. By integrating your accounting software with Katana’s cloud manufacturing platform, you’ll get all these essential features and more. With a free 14-day trial, you can experience firsthand why thousands of manufa...

Unlike a merchandising company that only handles complete items, your business has to deal with inventory valuation and the cost of goods sold. The statement used in a manufacturing business differs from that of any other business as it includes the cost of direct materials and labor and other production overhead. As we have seen, manufacturing accounting includes insight into processes absolutely...

However, whether or not the corresponding tax bases of the acquired assets and liabilities are also adjusted to fair market values is dependent on how the business is acquired. In some instances, the underlying assets may include intangible property which is fair valued for financial statement purposes in acquisition accounting. where do i enter schedule c However, since there is no change in tax ...

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By partnering with an outsourced CFO like Bender CFO Services, marketing agencies can receive expert guidance and support tailored to their unique needs, empowering the entire team. From forecasting and reporting to expense management and strategic planning, a CFO can help marketing agencies navigate complexities and achieve success. FreshBooks is cloud-based built-in accounting software that targ...

Businesses typically avoid this with individual customers due to the higher risk of non-payment. Examples of deferred revenue are commonly seen in various industries, such as training services, delivery services, the gift tax or newspaper subscriptions. In these cases, customers prepay for services or goods, and the company is obligated to deliver them. Delta Air Lines often sells tickets for flig...

Rental car insurance is a separate coverage offered by rental car companies that protects you and the vehicle during the rental period. You must have at least liability insurance to rent a vehicle, but you may not need to buy insurance through the rental company. Depending on your policy, rental reimbursement coverage may also apply to vehicles you don’t own that are involved in a covered accident...