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A journal entry is the act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company's debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit. The total of the debits must equal the ...
In double-entry bookkeeping, a sale of merchandise is recorded in the general journal as a debit to cash or accounts receivable and a credit to the sales account. [3] The amount recorded is the actual monetary value of the transaction, not the list price of the merchandise. A discount from list price might be noted if it applies to the sale.
Folio Number: Every page of a journal is numbered. This number is known as a folio number. [5] The folio number is used as a cross reference between the journal and the ledger accounts. The use of folio numbers makes it easy to refer back from the ledger account to the journal entry or forward from the journal entry to the ledger account.
Original issue discount rules separate the portion of the repayment that is attributable to interest and then taxes that amount at ordinary income rates. These rules prevent the avoidance of tax that might otherwise be available by characterizing the repayment as a capital gain, which is taxed at a lower rate, or by deferring the recognition of ...
Tally marks, also called hash marks, are a form of numeral used for counting. They can be thought of as a unary numeral system . They are most useful in counting or tallying ongoing results, such as the score in a game or sport, as no intermediate results need to be erased or discarded.
In a journal entry, a dishonored note is one that the maker did not pay by its due date. When this happens, the payee transfers the note from Notes Receivable to Accounts Receivable. The payee should debit Accounts Receivable for the full amount due, credit Notes Receivable for the note's face value, and credit Interest Revenue for the interest ...
In accounting, adjusting entries are journal entries usually made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred. The revenue recognition principle is the basis of making adjusting entries that pertain to unearned and accrued revenues under accrual-basis accounting .
A trade rate discount, sometimes also called "trade discount", is offered by a seller to a buyer for purposes of trade or reselling, rather than to an end user. For example, a pharmacist might offer a discount for over-the-counter drugs to physicians who are purchasing them for dispensing to the physicians' own patients. [7]