Bookkeeping

Similarly, it is true for investments and interest-bearing accounts to evaluate compounding interest earnings or gains. If the bill is not paid in full every month, one can end up paying interest not only on the principal amount but also on the interest that accrued in the previous month. Credit card users tend to shop […]

Sales tax rates are increasing, which makes the tax impact on a purchase more significant. Use these tips to learn how to calculate sales tax on your retail purchases. This is the most common reason people receive a tax refund. Unlike adjustments and deductions, which apply to your income, tax credits apply to your tax

As more or fewer units are sold, fixed costs allocated to each product can change. The total fixed costs are $50k, and the contribution margin ($) is the difference between the selling price per unit and the variable cost per unit. So, after deducting $10.00 from $20.00, the contribution margin comes out to $10.00. On

To avoid owing interest, make sure payments are being processed within the time frame outlined by the supplier in the payment terms. For example, if a supplier includes net 30 terms on its invoice, this means the payment must be received within 30 days of the invoice date. When https://www.quick-bookkeeping.net/ the invoice is received by

Total debt service refers to current debt obligations, meaning any interest, principal, sinking fund, and lease payments due in the coming year. On a balance sheet, this will include short-term debt and the current portion of long-term debt. Of course, the lending decision is not based on the debt service coverage ratio (DSCR). The commercial

Record $100 as a journal entry by debiting Vacation Payable and crediting the Cash account (5 hours x $20 per hour). You can structure leave accrual differently for each type of employee. You might allow team members to accrue additional time based on seniority or years of service—for example, getting an extra 8 hours of