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What is difference between an asset and an expense?
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.
What is the Journal entrey for cost in excess of billing?
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.
When a plant asset is acquired by issuance of common stock the cost of the plant asset is properly measured by the?
Type your answer here... par value of the stock
What is historical cost?
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.
Is depreciation expense used to allocate historical cost over the life of an asset?
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.
Where do you hit the cost of removing a fully depreciated asset IE asset 5000.00 so retirement entry equals credit asset account and debit accumulated depreciation account what about 200 removal cost?
Journal entry for removal cost: Debit Removal cost 200 Credit Cash 200
What is the journal entry to write off a fully depreciated asset?
[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
What is difference between an asset and an expense?
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.
What is the journal entries for disposal of fixed asset?
cr asset account for cost price dr accumulated depreciation for asset depreciation cr asset sale account dr/cr profit/loss on asset account
What is the Journal entrey for cost in excess of billing?
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.
When a plant asset is acquired by issuance of common stock the cost of the plant asset is properly measured by the?
Type your answer here... par value of the stock
What is the journal entry for capitalising development cost?
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.
What is historical cost?
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.
How do you record a Intangible asset in journal entry?
To record an intangible asset in a journal entry, you typically debit the intangible asset account for the purchase price or cost incurred to acquire it. If applicable, you also debit any related costs, such as legal fees or registration costs. The corresponding credit would usually be made to cash or accounts payable, depending on how the asset was financed. For example, if a company purchases a patent for $10,000, the journal entry would be: Debit Patent $10,000 and Credit Cash $10,000.
What is the journal entry in purchasing software?
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.
What is accumulated depreciation on a statement of cash flow?
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.
Is depreciation expense used to allocate historical cost over the life of an asset?
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.
