Property Plant & Equipment Accounting – Depreciation

Depreciation applying one of selected depreciation methods is used as cost of acquired non-current tangible assets is not included into the income statement at the moment of acquisition. The reason for this is that these assets are being used in the business for quite long-period … [Read more...]

Bank Reconciliation Statement Example

Before exploring bank reconciliation sample, it is worth to remind yourselves bank reconciliation process, which has the following main steps: 1st step: we identify and calculate the difference between bank statement and cash book 2nd step: we compare cash … [Read more...]

How To Do Bank Reconciliation?

Before exploring how to do bank reconciliation, you should remember two basic concepts which will be used in this process: One is bank statement - list of all transactions which occurred during a particular period of time and impacted cash in bank account of business. … [Read more...]

Basic Accounting Exercise – Adjusting Entries

Exercise Condition: The ledger of Piper Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. Prepaid Insurance $ 3,600 Supplies 2,800 Equipment 25,000 Accumulated Depreciation—Equipment $ … [Read more...]

Accounts Receivable Accounting – Calculating Net Value

Exercise Condition: Wessley Medical Supply Co., which had no beginning balance in its Accounts Receivable and Allowance for Doubtful Accounts, earned $80,000 of revenue on account during 2006. During 2006 Wessley collected $64,000 of cash from its receivables accounts. The … [Read more...]