Debit Assets account and credit Capital Account
An asset is a debit entry on the balance sheet. It represents a physical item of value, an intangible item of value such as goodwill, or a debtor to the business. An expense is a debit entry on the profit and loss account, and represents a cost to the business.
A journal entry for cost in excess of billing typically involves debiting a "Cost in Excess of Billing" account (an asset account) and crediting a corresponding "Revenue" or "Construction Revenue" account. This entry reflects the situation where expenses incurred on a project exceed the amount billed to the client, indicating that the company has incurred costs that will be recognized as revenue in the future. The entry ensures that financial statements accurately represent the company's assets and revenue recognition principles.
Type your answer here... par value of the stock
Historical cost is the cost of an item when it was originally acquired. Historical cost does not reflect the change of value over time that an asset undergoes.
Yes, depreciation account is used to allocate the cost of asset over the life of asset to income statement of the fiscal year where asset utilized to earn revenue.
Journal entry for removal cost: Debit Removal cost 200 Credit Cash 200
[Debit] Cash (if any) xxxx [Debit] Accumulated depreciation xxxx [Debit] Loss on disposal of asset (if any) xxxx [Credit] Asset account xxxx [Credit] Profit on disposal of asset(if any)xxxx
An asset is a debit entry on the balance sheet. It represents a physical item of value, an intangible item of value such as goodwill, or a debtor to the business. An expense is a debit entry on the profit and loss account, and represents a cost to the business.
cr asset account for cost price dr accumulated depreciation for asset depreciation cr asset sale account dr/cr profit/loss on asset account
A journal entry for cost in excess of billing typically involves debiting a "Cost in Excess of Billing" account (an asset account) and crediting a corresponding "Revenue" or "Construction Revenue" account. This entry reflects the situation where expenses incurred on a project exceed the amount billed to the client, indicating that the company has incurred costs that will be recognized as revenue in the future. The entry ensures that financial statements accurately represent the company's assets and revenue recognition principles.
Type your answer here... par value of the stock
Historical cost is the cost of an item when it was originally acquired. Historical cost does not reflect the change of value over time that an asset undergoes.
To capitalize development costs, debit the Development Costs asset account for the amount capitalized and credit the Cash or Accounts Payable account if payment was made. This allows the costs to be spread out over the useful life of the asset rather than expensing them immediately.
The journal entry for purchasing software involves debiting the software asset account to reflect the cost of the software and crediting the cash or accounts payable account depending on the method of payment. This entry recognizes the increase in assets due to the software purchase and the corresponding decrease in cash or increase in liabilities.
Accumulated depreciation is the amount of a long-term's asset's cost that has been allocated to depreciation since the time the asset was acquired.
Yes, depreciation account is used to allocate the cost of asset over the life of asset to income statement of the fiscal year where asset utilized to earn revenue.
Option B is correct one and that is the portion of the asset;s cost that has not yet been charged to expense.