Accounting Tools

JUNE 11, 2023

When a company buys back shares , the expenditure to repurchase the stock is recorded in a contra equity account. This is a balance sheet account that has a natural debit balance. Thus, the effect of recording a treasury stock transaction is to reduce the total amount of equity recorded in a company's balance sheet.

Financial Statements 40

Financial Statements Accounting Accounting 40

Accounting Tools

MAY 21, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is a Debit Balance? There are several meanings for the term debit balance that relate to accounting, bank accounts, lending, and investing. Accounts that normally have a debit balance include assets, expenses, and losses.

Reconciling 40

Reconciling Bookkeeping Accounts Receivable Accounts Receivable 40

Accounting Tools

JUNE 7, 2023

Related Courses International Accounting What is a Financial Liability? Equity Settlement A financial liability can be a contract probably to be settled in the entity's own equity and that is a non-derivative under which the entity may deliver a variable amount of its own equity instruments.

Accounts Payable 40

Accounts Payable Accounts Payable Financial Reporting Accounting 40

Accounting Tools

JULY 8, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook When you reconcile an account, you are proving that the transactions that sum to the ending account balance for the account are correct. Usually, this means moving an expense into a different account.

Reconciling 75

Reconciling Account Reconciliation General Ledger Accounting 75

Accounting Tools

OCTOBER 25, 2023

This may occur after legal action has been taken to recover a receivable , as a partial payment from a bankruptcy administrator, the acceptance of equity in exchange for cancellation of the receivable, or some similar situation. Accounting for a Bad Debt Recovery The accounting for a bad debt recovery is a two-step process, as noted below.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Collections 40

Accounting Tools

JULY 30, 2023

Related Courses Accountants' Guidebook GAAP Guidebook The Balance Sheet How to Account for Stock Stock is an ownership share in an entity, representing a claim against its assets and profits. We will address the accounting for each of these stock transactions below.

Accounting 40

Accounting Accounting 40

Accounting Tools

NOVEMBER 4, 2023

Related Courses The Balance Sheet What is a Contra Liability Account? A contra liability account is paired with another liability account , and is used to reduce the balance in that account. A contra account may also have a zero balance, if no offset against a related liability account is currently needed.

Accounting 40

Accounting Accounting Accounts Receivable Accounts Receivable 40

Accounting Tools

JUNE 21, 2023

Related Courses Partnership Accounting Partnership Tax Guide What is a Drawing Account? The drawing account is an accounting record used in a business organized as a sole proprietorship or a partnership , in which is recorded all distributions made to the owners of the business.

Accounting 75

Accounting Accounting Tax Bookkeeping 75