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Where to put rent expenseon financial statement?

in p&L a/c


How do you show small business investor payback on balance sheet?

Simply put: you don't show investor payback on a balance sheet. By definition, the balance sheet is a statement of financial position; a snapshot of the company's financial situation at a particular moment in time. Nor should you show the investor payback on the Cash Flow, P&L or Changes in Stockholder Equity Statements. We recommend showing the investor payback as a footnote to the P&L Statement, the Cash Flow Statement as well as a paragraph in the text of your document. In the paragraph, we recommend explaining 'how' you calculated the payback, what assumptions you used and over what period of time.


What is the journal entry to record the unrealized loss on donated stock?

Dr. Unrealized loss on investment in Company B (P&L) Cr. Investment in Company B (B/S)


What are the parts of Profit and Loss Statement?

A Profit and Loss Statement (P&L), also known as an income statement, consists of several key parts: revenue, which represents total sales generated; cost of goods sold (COGS), which reflects the direct costs associated with producing goods or services sold; gross profit, calculated by subtracting COGS from revenue; and operating expenses, which include selling, general, and administrative costs. The statement also accounts for other income and expenses, leading to net income, which indicates the company's overall profitability. Ultimately, the P&L provides a comprehensive overview of a company's financial performance over a specific period.


What is the difference between consolidated and combined financial statements?

Consolidated f/s like combined f/s sum up the reporting entities or subsidiaries transactions into a total. The difference is that consolidated f/s will eliminate transactions where subsidiary entities bought and sold goods or loaned each other money. For example lets say we have Parent company P and subsidiary companies S and T. S sells 1,000 widgets to T for 10 each = $10,000. S would record revenue of $10,000 and T would record expense of $10,000. However when P consolidates the f/s P would eliminate that sale as an inter-entity transaction, if not, then revenue and expenses would be over stated by $10,000. P is really just moving money from one pocket to another, there is no sale where P actually gains real income. Hope this was helpful.