Single-Step vs Multi-Step Income Statement: Key Differences for Small Business Accounting

Here is an example of how to prepare an income statement from Paul’s adjusted trial balance in our earlier accounting cycle examples. They use competitors’ P&L to gauge how well other companies are doing…

Continuar leyendoSingle-Step vs Multi-Step Income Statement: Key Differences for Small Business Accounting

Compound Journal Entry Entries With More Than Two Accounts

Most business transactions only affect two accounts in the ledger. If the merchandiseis paid for on account, the inventory account is debited and the account payable account is credited. The account can have…

Continuar leyendoCompound Journal Entry Entries With More Than Two Accounts