Journal entries are one of the most fundamental and essential concepts in accounting. A journal entry is a record of a transaction that affects a company's financial statements. Journal entries are...
Category: Financial Accounting
The Statement of Owner's Equity is one of the four major financial statements. The function of the Statement of Owner's Equity is to show changes in the value of equity in a corporation. It also...
The Statement of Shareholders' Equity is one of the four major financial statements. The function of the Statement of Shareholders' Equity is to show changes in the value of equity in a corporation....
What is a Note Receivable? A note receivable is formal payment agreement between two or more people or entities. It is a promissory note that specifies: Who the note is due to (the payee)Who...
What is the Difference Between Accruals and Deferrals in Adjusting Entries? The purpose of adjusting entries is to bring revenues and the associated expenses into the same accounting periods. The...
When a Journal Entry is made to record a transaction, that Journal Entry is then entered (posted) in the accounts being impacted. For example, when rent is paid, in the journal entry Rent Expense is...