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Q. Explain about Stockholders equity?
Stockholders' equity demonstrates the owners' interest in the business. This interest is equivalent to the amount contributed plus the income left in the business. The items in stockholders' equity in The Home Depot's balance sheet are paid-in capital (including common stock) and retained earnings. Paid-in capital demonstrates the capital paid into the company as the owners' investment. Retained earnings demonstrate the cumulative income of the company less the amounts distributed to the owners in the form of dividends. Cumulative translation adjustments consequence from translating foreign currencies into US dollars. The next section demonstrates how two categories on the classified balance sheet relate to each other. Together they assist reveal a company's short-term debt-paying ability.
Q. Illustrate unearned service fees? Micro Train reports the service income in its income statement for 2010. The company enters the USD 3000 balance in the Unearned Service Fe
Q. What is Income Summary account? The Income Summary account is a clearing account used merely at the end of an accounting period to summarize revenues and expenses for the pe
The use of ledger accounts A journal entry is similar to a set of instructions. The execution of these instructions is known as posting. Since stated earlier posting is recordi
Q. Explain about cash discount? In a few industries credit terms include a cash discount of 1 percent to 3 percent to induce untimely payment of an amount due. A cash discount
How to create account for barter transactions? As My Company is providing a service to another company and that company is reimbursing us with his service.
Q. Maplehurst Company? Maplehurst Company manufactures huge spinning machines for the textile industry. The company had purchased USD 100000 of small hand tools to utilize in i
The process of adjusting the bond interest expense account for any premium or discount is called amortization of the premium or discount
The book of Deven Verma could not be tallied. The accountant transferred the difference of Rs. 1,270 in the suspense account on the debit side. The following mistakes were found la
Accounting Principles are the rules and guidelines that companies should follow when reporting and accounting financial data. The general set of accounting principles are the gener
Woodie Limited issues $5 million in convertible bonds on 1 July 2012. They are issued at the fair value and pay an interest rate of 4 percent. The interest is paid at the end of ea
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