Voiding the original check is all you need to do. The expense account from the original check will be decreased in the current year. That is necessary because you recognized an expense in the prior year that turned out to not be a real expense, so we recognize the correction on this year’s books....
A layperson should beware that the party supplying the boilerplate form usually has developed supposedly "standard" terms (some of which may not apply to every situation) to favor and/or protect the provider. Columns and other pieces that were syndicated were sent out to subscribing newspapers in the form of a mat (i.e. a matrix)....
If a financial statement date intervenes between the declaration and distribution dates, the Stock Dividend Distributable account should be disclosed as part of Paid-In Capital. The subsequent distribution will reduce the Common Stock Dividends Distributable account with a debit and increase the Common Stock account with a credit for the $9,000. Any net income...
But unlike fixed cost and variable cost, companies don't provide independent details of their semi-variable cost in their financial statements. This is because identifying a semi-variable cost is usually relevant for internal purposes only, unlike fixed and variable costs that serve external purposes as well. Generally, a business is said to incur two types...
Eli Lilly's business is going gangbusters, which is why investors have flocked to its stock. Thanks to that, it is now the world's most highly capitalized pharmaceutical company, worth a staggering $593 billion-plus. Unlike other networks like Visa and Mastercard, which partner with financial institutions, American Express acts as its own bank. Net interest...
Now, you see that the number of debit and credit entries is different. As long as the total dollar amount of debits and credits are equal, the balance sheet formula stays in balance. A company’s general ledger is a record of every transaction posted to the accounting records throughout its lifetime, including all journal...
Keep in mind that you only deal with accrued liabilities if you use accrual accounting. Under the accrual method, you record expenses as you incur them, not when you exchange cash. On the other hand, you only record transactions when cash changes hands under the cash-basis method of accounting. The cash flow statement begins...
An interest-only mortgage requires payments just of the interest — the cost of borrowing money — during the first years of the loan. After the interest-only period, you can refinance or pay off the loan or start making monthly payments of both principal and interest. With most loans, your monthly payments go toward both...
