Category Archives: Bookkeeping

What a Stock Split Is and How It Works, With an Example

The decision to split the stock should be carried out by the board of directors or by a committee vote with shareholders. As such, the decision to split the shares is a costly and time-consuming exercise. As with cash dividends, tax considerations have an important Inhering on the decision to issue a stock dividend. […]

The Difference Between Fixed Expenses and Variable Expenses

To optimize your fixed expenses, consider exploring ways to reduce costs without compromising the quality of your products or services. This could involve negotiating better deals with suppliers, implementing energy-saving practices, or exploring more affordable leasing options. By constantly evaluating and improving your expense management, you can enhance your business’s profitability and ensure long-term success. […]

What Predetermined Overhead Rate Is Formula and Sample

This predetermined rate was based on a cost formula that estimated $\$ 257,400$ of total manufacturing overhead cost for an estimated activity level of 11,000 direct labor-hours. The most common allocation base used in manufacturing is machine hours, direct labor hours, or direct materials cost. For example, if the allocation base is machine hours, estimate […]

What are the adjusting entries for prepaid insurance? Example and Explanation

By prepaying for insurance, companies can ensure that they have adequate insurance coverage for their operations and protect against potential losses without having to spend their cash reserves. Additionally, prepaid insurance can help companies stabilize their expenses and manage their budgets more effectively by locking in insurance rates for a specific time period. When the […]

Important information about Vacant Homes Tax

If you’ve promised to pay someone in the future, and haven’t paid them yet, that’s a liability. Assets are anything valuable that your company owns, whether it’s equipment, land, buildings, or intellectual property. The amount in the Accounts Payable account is decreased to show the company no longer owes this money to the vendor. It […]

Average Personal Loan Interest Rates

Many interest-only mortgages are also jumbo loans, for higher-priced properties that don’t meet conventional loan standards. An interest-only mortgage is a loan with scheduled payments that require you to pay only the interest for a specified amount of time. If you’re looking to buy a second home, you may want to consider an interest-only loan. […]