Category: Bookkeeping

Pearson has recently introduced a new royalty accounting system to help us manage royalty processing more efficiently. As a part of the new system, your royalty statement has a new format. This guide has been created to help you understand the information as it is displayed in your new statement. The term “royalty” refers to… Continue reading What Is a Royalty? How Payments Work and Types of Royalties

For example, if Willie’s Widget Corp. sells a widget for $10, then that $10 is revenue, regardless of whether the widget cost $4, $10 or $20 to produce. Revenue is the money a company primarily makes from its business activities – selling goods and services within a specified period. The examples in this article should… Continue reading How to calculate retained earnings formula + examples

In this case, this endorsement provides authority to the endorsee to follow a specific path with that item. In both cases, the underlying principle for the restrictive endorsement remains the same. It effectively limits how the endorsed can use the involved instrument. Subsection (b) provides that an indorsement that states a condition to the right… Continue reading What is a restrictive endorsement?

They can also impose penalties for filing the forms incorrectly or incompletely. If you also need an extension for giving the 1099-NEC and W-2 forms to the recipients, you can fax a letter to the IRS by January 31. To correct a paper return after filing the form, file Copy missed 1099 deadline A of… Continue reading Forgot to file 1099-MISC? You can file in minutes

Therefore, the company needs to record an accrual adjusting entry that debits Interest Expense for $500, and credits Interest Payable for $500. Since net income includes the deductions of interest expense and tax expense, they need to be added back into net income to calculate EBIT. The average company spends 5 hours each pay period or… Continue reading Is Interest Expense An Operating Expense?

This lower amount is your take-home pay and it is divided into 26 paychecks per year, paid to you every other Friday. It’s not based on the hours you work because it’s a flat salary rate that you agreed to when you were hired at the company. GAAP calculations do not incorporate the type of… Continue reading Gross Domestic Product GDP: Formula and How to Use It