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The employees had created fictitious accounts and were siphoning off funds, thus resulting in discrepancies between the stated balances and the actual balances. The use of negative confirmation allowed the auditors to identify these exceptions, leading to the exposure and subsequent prosecution of the fraudulent activities. Negative confirmations play an essential role when it comes […]

Nothing is more satisfying than seeing a clean, balanced set of books! We’ll also improve your CARES Act cash flow by 20% by streamlining invoicing, payment processes, and expense tracking to keep your business running smoothly and efficiently. For reliable and professional bookkeeping services in Colorado Springs, Denver, Pueblo, and beyond, turn to Dunn Bookkeeping. […]

The journal entry is debiting debt issuance cost $ 600,000 and credit cash paid $ 600,000. It means that debt issuance cost will be classified as the contra account of bonds/debt which will decrease the debt on the balance sheet. The company has to amortize the debt issue cost base on the bond lifetime. It […]

Conversely, Liabilities and Equity accounts generally increase with a credit, establishing their normal balance as a credit. Expenses, like Rent Expense, typically increase with a debit, as they reduce owner’s equity. Further details of the use of this allowance method can be found in our aged accounts receivable tutorial. Bad Debt Expense increases (debit), and […]

The installment amount comprises a portion of the remaining balance in the form of the principal payment plus the interest on the remaining amount. In the beginning, due to the large remaining balance, the proportion of principal payment is smaller and the interest takes the larger chunk. Installment sales contracts are preferred when an entity […]

It’s a fundamental building block that the entire field of finance is built upon. And yet, many finance and commercial real estate professionals still lack a solid working knowledge of time value of money concepts, and they consistently make the same common mistakes. In this article, we take a deep dive into the time value of […]