Bookkeeping

Sometimes funds are “in transit” for less than a day, as when a customer pays you with cash or a check and you take the money to your bank at the end of the day. Other times, funds might be in transit for several days. I’m about to start trying to reconcile my Quickbooks to […]

You then add together the $5,575 and $4,665 to get a total of $10,240. If you review the income statement, you see that net income is in fact $4,665. Unearned revenue had a credit balance of $4,000 in the trial balance column, and a debit adjustment of $600 in the adjustment column. Remember that adding

This account is a liability because the company has an obligation to deliver the good or provide the service in the future. If the company receives an electric bill for $1,700, under the cash method, the amount is not recorded until the company actually pays the bill. However, under the accrual method, the $1,700 is recorded as