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Show me How do you prepare an income statement?
fees earned-950,000 office expense -222,000 miscellaneous expense-16,000 wage expense-478,000
What type of expense are office salaries depreciation of office equipment and office supplies?
Administrative expenses
Can you depreciated leased office equipment?
No, leased office equipment cannot be depreciated by the lessee, as depreciation applies to owned assets. Instead, the lessee typically records lease payments as an expense on their income statement. However, if the lease qualifies as a finance lease under accounting standards, the lessee may need to recognize the asset and liability on their balance sheet, allowing for depreciation of the asset. Always consult with an accounting professional for specific situations.
Where does office supplies go on an income statement?
Office supplies are typically categorized as operating expenses on an income statement. They are recorded under the selling, general, and administrative (SG&A) expenses section. The costs associated with office supplies are deducted from total revenue to calculate the net income for the period. If they are purchased in bulk and have a long-term use, they may initially be recorded as an asset and expensed over time through depreciation or amortization.
Is depreciation on office equipment classified as a variable or fixed cost?
Depreciation on office equipment is classified as a fixed cost. Fixed costs are expenses that do not change with the level of production or sales, and depreciation remains constant over time regardless of how much the office equipment is used. This makes it a predictable expense that businesses incur regardless of their activity level.
Show me How do you prepare an income statement?
fees earned-950,000 office expense -222,000 miscellaneous expense-16,000 wage expense-478,000
What type of expense are office salaries depreciation of office equipment and office supplies?
Administrative expenses
What is kind of operating expense is depreciation selling expense or general administrative expense?
Examples of operating expense ==> depreciation expense of a machine, impairment of goodwill Example of selling expense ==> advertising Example of general administrative expense ==> office expense
Is depreciation of sales office equipment a selling expense?
The Sales Office is in charge of the selling of valuables of an entity. Thus, all expenses related to this office is debited to selling expenses. Furthermore, depreciation is a form of expense, and deserves a different account, but since it is related to the sales office, it is debited to selling expenses. Yes, it is a selling expense.
Can you depreciated leased office equipment?
No, leased office equipment cannot be depreciated by the lessee, as depreciation applies to owned assets. Instead, the lessee typically records lease payments as an expense on their income statement. However, if the lease qualifies as a finance lease under accounting standards, the lessee may need to recognize the asset and liability on their balance sheet, allowing for depreciation of the asset. Always consult with an accounting professional for specific situations.
What can go to Expense Account Choose ccounts payable interest revenue accounts receivable merchandise inventory accumulated depr - building mortgage payable accumulated depr - equipment office?
Accumulated Depreciation Building and Accumulated Depreciation Equipment office
Where does equipment go on the income statement?
It won't. Equipment will be recorded in the Statement of Financial Position (Balance Sheet) as an asset. with regards to the income statement the only entries relating to equipment would be deprecation expense, impairment expense and perhaps revaluation gain (although that would probably go into the Statement of Other Comprehensive Income- depending on policies)
Is toner an office expense or an operating expense?
Office expense
How does depreciation expense difference from other operating expenses?
Operating Expenses are the cost of doing business and are paid out of the company's cash or in some cases paid with Bonds, Stocks, or Dividends, either way, these expense will affect the Cash of the company and it's worth. Their are two accounts for Depreciation one is Accumulated Depreciation. This is an Contra-Asset Account and is listed on the Balance Sheet under assets and is deducted from the related asset account. Depreciation Expense is the expense we claim from Accumulated Depreciation and though it is an expense it does not affect our Cash. We do not actually "pay" this expense. Depreciation is the decline in usefulness of a Fixed Asset. Remember, all Fixed Assets (except Land) lose their usefulness. Decreases in the usefulness of assets that are used in generating revenue are recorded as expenses. However, such decreases for fixed assets are difficult to measure. For this reason, a portion of the cost of the fixed asset is recorded as an expense each year for its useful life.
Is an office expense an indirect expense?
yes it is an indirect expense
Is an office expense a selling expense?
yes
Is notes payable a permanent account?
Any account on the balance sheet is a permanent account - 'Cash', 'Accounts Receivable', 'Accounts Payable'. Income and expense accounts are temporary accounts because they are closed at the end of an accounting period. Examples are: 'Service Revenue', 'Office Expense', and, my personal favourite, 'Meetings and Entertainment Expense'.
