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A journal entry is the act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company's debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit. The total of the debits must equal the ...
The journal entry "ABC Computers" is indented to indicate that this is the credit transaction. It is accepted accounting practice to indent credit transactions recorded within a journal. In the accounting equation form: A = E + L, 500 = 0 + 500 (the accounting equation is therefore balanced).
Stock option expensing is a method of accounting for the value of share options, distributed as incentives to employees within the profit and loss reporting of a listed business. On the income statement, balance sheet, and cash flow statement the loss from the exercise is accounted for by noting the difference between the market price (if one ...
A general journal is a daybook or subsidiary journal in which transactions relating to adjustment entries, opening stock, depreciation, accounting errors etc. are recorded. The source documents for general journal entries may be journal vouchers, copies of management reports and invoices.
Folio Number: Every page of a journal is numbered. This number is known as a folio number. [5] The folio number is used as a cross reference between the journal and the ledger accounts. The use of folio numbers makes it easy to refer back from the ledger account to the journal entry or forward from the journal entry to the ledger account.
The partners agreed to the withdrawal of cash equal to the amount of Partner C's equity in the assets of the partnership. Assume that the partners' capital accounts had credit balances as follows: Partner A $60,000; Partner B $40,000; Partner C $30,000; If Partner C withdraws $30,000 in cash, the entry on the books is as follows:
Assets = Liabilities + (Shareholder's or Owner's equity). [10] [5] The accounting equation is the mathematical structure of the balance sheet. Although a general ledger appears to be fairly simple, in large or complex organizations or organizations with various subsidiaries, the general ledger can grow to be quite large and take several hours ...
Jennifer Carpenter, The exercise and valuation of executive stock options, Journal of Financial Economics, 48 (1998) 127-158. Joseph A. D’Urso, Valuing Employee Stock Options: A Binomial Approach Using Microsoft Excel, The CPA Journal, July 2005. Tim V. Eaton and Brian R. Prucyk, No Longer an Option, Journal of Accountancy, April 2005