The effective interest method enables us to better reflect a firm's borrowing costs. A full example with journal entries is provided to help explain what is involved.
Category: Accounting Tutorials
The purpose of the statement of owner's equity is to reflect the changes in owners contributions and withdrawals, movements in reserves and the business's profit or loss over time. The statement...
Many tax jurisdictions have a form of sales tax, which is a tax on the final customer of the good or service. In affect businesses collecting this tax are agents for the tax authority and have to...
Drawings are the withdrawal of capital from a business by an owner. In this article, we will look at a simple example and the journal entry required to account for interest charged on drawings. The...
Before we look at the debt issuance costs, we need to define what we are reviewing and a little history in where current recognition, measurement and disclosure is with generally accepted accounting...
The accounting for convertible debt presents some technical accounting challenges. However, we can help you with the theory and practical, setting out the debits and credits you need to know.