Accountingrowth_AdminDividend Income Journal Entry Dividend investing is a long-term investment strategy that involves buying stocks of companies that regularly pay cash to shareholders. Dividends are payments made by corporations to their shareholders, and they are usually paid quarterly, but some companies may pay them monthly, semiannually, or annually. Owning dividend-paying stocks allows investors to receive …
Asset Retirement Obligation Journal Entry Asset retirement obligations (ARO) are liabilities that a company assumes when it acquires, owns, or operates a long-term asset. The company is responsible for the cost of retiring the asset, which includes the removal of the asset, the restoration of the site, or any other activities necessary to retire the …
FOB Shipping Point Journal Entry FOB Shipping Point is a term used in the shipping industry to indicate that the buyer is responsible for freight costs from the seller’s warehouse to the buyer’s destination. It is an acronym for Free On Board and is used to determine the party responsible for the cost of shipping …
Investment Journal Entry Investment refers to the acquisition of securities with the aim of achieving a financial return. Examples of investments include bonds, common stock, preferred stock and property for rental payments. Investments are meant to generate income, unlike other assets that are consumed over time. Investments are usually made with the intention of gaining …
Equipment Purchase Journal Entry Equipment fixed assets are items that are used for business operations and are expected to provide long-term benefits. The purchase of such equipment is an important decision for any business. Equipment Purchase Journal Entry A journal entry is an accounting record used to track money or assets entering and leaving a …
Issue Gift Card Journal Entry Gift cards provide a convenient and flexible method of payment for consumers. They can be used to purchase goods and services from a variety of retailers. Gift cards are issued by a variety of organizations, including banks, credit card companies, and retailers. The process of issuing a gift card involves …
Disposal of Fixed Asset Journal Entry Disposal of fixed assets involves a number of steps, such as determining the asset’s selling price, preparing the asset for sale, and recording the disposal in the company’s journal entries. The process of disposing of fixed assets begins with determining the asset’s selling price. This involves conducting market research …
Impairment Gain Journal Entry Impairment can be understood as a permanent decline in the value of an asset due to a decrease in the cash flows or benefits it generates. This can be understood in terms of tangible assets such as a factory damaged by a natural disaster, or intangible assets such as a decrease …
Deferred Tax Liability Journal Entry Deferred tax liability is a future obligation to pay taxes that arise when recognition of tax expenses is delayed in the current period. It is triggered by events that would have required a tax payment in the current period but have been put off to a later date. This type …
Bad Debt Recovery Journal Entry Accounts receivable, commonly referred to as debt, is an important financial asset for most businesses. When a customer fails to pay what they owe, it is considered a bad debt. The process of recovering bad debt involves a variety of steps including assessing the value of the debt, debt validation, …