Categoría: Bookkeeping

Nevada, Ohio, Texas, and Washington impose gross receipts taxes instead of corporate income taxes. Delaware, Oregon, and Tennessee impose gross receipts taxes in addition to their corporate income taxes. Some localities in Pennsylvania, Virginia, and West Virginia state income tax rates likewise impose gross receipts taxes, which are generally understood to be more economically harmful…

Think of Opening Balance Equity (OBE) as a temporary holding account for your starting balances. When setting up QuickBooks, you’ll input your company’s initial balances for accounts like cash, loans payable, and accounts receivable. OBE ensures these numbers are balanced, providing a clear and accurate snapshot of your business’ financial position. Opening journal entry: This…

If you manufacture a product, these costs would include direct materials and labor along with manufacturing overhead. Most of the components of a manufactured item will be raw materials that, when received, are recorded as inventory on the balance sheet. Only when they are used to produce and sell goods are they moved to cost…

Most individual tax filers use some version of the IRS Form 1040 to calculate their taxable income, income tax due, and after-tax income. To calculate after-tax income, the deductions are subtracted from gross income. After-tax income is the difference between gross income and the income tax due. Strategic integration of AGI management into broader tax and financial…

Therefore, an adjusting entry must be recorded as of December 31 to credit Prepaid Expenses for $1,000 and to debit Insurance Expense for $1,000. For example, assume ABC Company purchases insurance for the upcoming twelve month period. ABC Company will initially book the full $120,000 as a debit to prepaid insurance, an asset on the…