Discount on Note Receivable Formula Journal Entry
To provide additional information, the debit could be recorded to an account entitled “Notes Receivable—Dishonored.” That is to say, if the original holder is without further liability, then the asset is effectively transferred and its amount should be removed...
Read moreDiscount on notes receivable definition
Interest Expense is debited and Interest Payable is credited for three months of accrued interest. Each year, the unamortized discount is reduced by the interest expense for the year. This treatment ensures that the interest element is accounted for...
Read moreStatement of Functional Expenses, Statement of Cash Flows
While the statement of cash flows, or cash flow statement, may be a bit difficult to prepare, it is an important financial statement to be read. Line 16, occupancy costs, includes rent, utilities, property insurance, real estate taxes, mortgage...
Read moreHow to Efficiently Categorize Nonprofit Expenses for a Statement of Functional Expenses
A statement of functional expenses is used to show how expenses are incurred for each functional area of a nonprofit entity. In essence, it reveals how a nonprofit has decided to allocate its available funds in order to fulfill...
Read more9 1 Overview of share repurchase and treasury stock
This transaction does not affect the income statement since gains and losses on treasury stock transactions are not recognized in earnings but are directly adjusted in equity accounts. In this article, we’ll cover common journal entries for treasury stock...
Read moreTreasury Stock Treasury Shares: Definition, Use on Balance Sheets, and Example
In addition to these methods, GAAP requires detailed disclosures about treasury stock transactions in the notes to the financial statements. These disclosures include the number of shares held as treasury stock, the reasons for share repurchases, and the impact...
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