Journal Entry for Goods on Consignment Goods on Consignment Goods on consignment are when goods are sent by the owner to an agent for sale, with the owner continuing to own the goods until they are sold. This process does…
Journal Entry for Cash Distribution to Shareholders Shareholders Shareholders have the right to receive distributions of cash from a company’s profits. This is often done through dividend payments, which are distributed based on the number of shares owned. Shareholders can…
Journal Entry for Health Insurance Premium Health Insurance Premium Health insurance premiums represent a critical component for individuals and families seeking coverage for medical care. Generally, higher premiums come with lower out-of-pocket expenses, making it an attractive option for many.…
Journal Entry for Loan Forgiveness Loan Forgiveness Loan forgiveness is a form of financial assistance that alleviates borrowers from the obligation of loan repayment. It is an alternative to traditional loan repayment that is designed to provide relief during difficult…
Journal Entry for Granting Stock Options Stock Options The granting of stock options to employees of a company can provide incentive for them to stay with the company and potentially benefit from increased stock values. Employee stock options (ESOs) are…
Journal Entry for Cash Sales With Discount Cash Sale A cash sale is an exchange of goods for money that happens simultaneously. It is a common type of transaction, in which customers pay for goods and services in cash. In…
Debt Issuance Fees Journal Entry Debt Issuance Fees The costs associated with debt issuance are typically paid to third parties as a part of the process. These costs include registration fees, legal fees, printing costs, underwriting costs, and other expenses.…
Cash Refund Journal Entry Cash Refund A cash refund is a repayment of funds from the original payee to the original payer. It can be caused by a number of reasons, such as returned goods, overbilling, or excess tax payment.…
Bonus Depreciation Journal Entry Bonus Depreciation Bonus depreciation allows businesses to deduct a large percentage of the cost of eligible purchases in the year they are acquired. It was created by the IRS as an incentive for small business investments…
Accelerated Depreciation Journal Entry Accelerated Depreciation Accelerated depreciation is a method of accounting for fixed assets that allows for the recognition of depreciation expenses at a faster rate in the earlier years of a fixed asset’s useful life. This has…
Capitalizing R&D Expenses Journal Entry Capitalizing R&D expenses Capitalizing research and development (R&D) expenses is a common accounting practice that allows for a better comparison of companies within the same industry. R&D spending can vary significantly from year to year,…
Biological Assets Journal Entry Biological Assets Biological assets are living assets that have a value assigned to them according to International Accounting Standard 41. These assets are typically categorized in the balance sheets and are usually measured at fair value…