This is accomplished with a debit of $1,000 to Insurance Expense and a credit of $1,000 to Prepaid Insurance. This same adjusting entry will be prepared at the end of each of the next 11 months. As the prepaid amount expires, the balance in Prepaid Insurance is...
Owner withdrawals from businesses that are taxed as separate entities must be accounted for generally as either investment fund accounting compensation or dividends. Drawings, also known as “owner withdrawals” or “owner’s draw,” refers to the process of taking money...
For example, commitment fees paid to lenders may be capitalized if directly linked to loan acquisition. Take time to run the numbers and decide if the interest savings outweigh paying fees in cash for your situation. Many first time home buyers choose to amortize...
Like biannual, semi-annual also means “happening twice each year.” However, semi-annual is slightly more specific than biannual. So, if you have a “semi-annual” event, it means there is a six-month gap between the two. Semiannual is simply a word that denotes an...
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