When journalizing sales transactions in an intermediate accounting course, it is important to differentiate between the methods that the company is using. In this lesson, we will explore the net method versus the gross method for accounting for sales transactions. In this section, we illustrate the journal entry for the purchase discounts for both net…

Regular account reconciliation helps catch errors, prevent fraud, and ensure accurate financial reporting. Despite these differences, construction accounting still adheres to general accounting principles and requires accurate record-keeping, financial statements, and tax compliance. This software is best for those who manage construction projects on real estate that they own or lease. This is best for…

The excess amount of $50,000 ($150,000 – $100,000) ended up on the share premium account. The debit side will include the full amount of the finance received. As mentioned, this account will only hold the par value for the shares issued by the company. For companies, the process of separating the amount is crucial in…