Indang Water District

Bookkeeping

Income Statement Format

A traditional income statement shows business revenue minus expenses and losses for a certain accounting period. It tells you how much income your business netted during that period of time. Typically, a company will use a traditional income statement for external reporting purposes and a contribution margin income statement to analyze the performance of a […]

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3 6 Prepare a Trial Balance Principles of Accounting, Volume 1: Financial Accounting

The trial balance is used to test the equality between total debits and total credits. Managers and accountants can use this trial balance to easily assess accounts that must be adjusted or changed before the financial statements are prepared. Since temporary accounts are already closed at this point, the post-closing trial balance will not include

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Journal Entry and Ledger Posting for Telephone Expenses incurred but not yet paid

But to understand the accounting process, let’s learn how to record the cash payment for telephone charges. When you receive the $20 from the employee, you will credit the account Receivable from Employees. Another common expense for business owners is the cost of paying employees. In this case, the total value of your payroll gets

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6 Step-by-Step Guide to Calculating Overhead Rate: Mastering Your Costs Effectively

If the predetermined overhead rate calculated is nowhere close to being accurate, the decisions based on this rate will definitely be inaccurate, too. That is, if the predetermined overhead rate turns out to be inaccurate and the sales and production decisions are made based on this rate, then the decisions will be faulty. This can

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