Category: Bookkeeping

Post Closing Trial Balance Format Example

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These accounts are closed at the end of the period by transferring their balances to the retained earnings account or other permanent accounts, such as the accumulated depreciation account. The balance sheet is classifying the accounts by type of accounts, assets and contra assets, liabilities,... Continue reading

Where does revenue received in advance go on a balance sheet?

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Other companies provide an intermediary service usually for a fee. International business trade can involve a variety of businesses ranging from small companies to large conglomerates. Businesses that do not want to deal with the risks of inventory write-offs will require cash in advance payment... Continue reading

Expert Accounting & Bookkeeping for Landscaping Businesses

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Bookkeeping is the process of recording all financial transactions that occur within a company. It involves tracking sales income, purchases made by the business (such as materials or services), payments received from customers, and other miscellaneous expenditures related to running the business. This information can... Continue reading

What happens if I change the retained earnings account?

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Likewise, a net loss leads to a decrease in the retained earnings of your business. Retained earnings represent a useful link between the income statement and the balance sheet, as they are recorded under shareholders’ equity, which connects the two statements. This reinvestment into the... Continue reading