Category: Bookkeeping 101

Petty Cash

Oct 20, 2020 Bookkeeping 101 by ann
Keep petty cash on hand in your business to cover small unexpected expenses. These expenses can include paying postage, tipping delivery people, purchasing supplies, buying gifts and more. The accounts involved in journalizing petty cash are petty cash, cash and cash short & over. Record petty cash shortages and overages in the cash short &
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NPV: The Gold Standard of Financial Decision Making Tools

Oct 20, 2020 Bookkeeping 101 by ann
Interest on student loans (along with loan origination fees and any capitalized interest) is tax deductible, providing the borrower’s income is below a certain level. The Internal Revenue Service (IRS) states that an individual’s modified adjusted gross income (MAGI) must be less than $85,000 (or $170,000 if filing a joint return) for tax year 2019.
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T account

Oct 20, 2020 Bookkeeping 101 by ann
Since your company did not yet pay its employees, the Cash account is not credited, instead, the credit is recorded in the liability account Wages Payable. A credit to a liability account increases its credit balance. How to Use Excel as a General Accounting Ledger T accounts can also include cash accounts, expense accounts, revenue
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6 effective ways to build a sustainable business

Oct 20, 2020 Bookkeeping 101 by ann
There are cases when a company’s growth becomes greater than what it can self-fund. In these cases, the firm must devise a financial strategy that raises the capital needed to fund its rapid growth. The company can issue equity, increase financial leverage through debt, reduce dividend payouts, or increase profit margins by maximizing the efficiency
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