First, the purchase of $350 thousand of machinery (debit machinery and credit cash); the $350 thousand cash payment is shown in the investing activities section (see Figure 11.5). Second, machinery costing $140 thousand with accumulated depreciation of $100 thousand was sold for cash of $30 thousand resulting in a loss of $10 thousand. The cash

Next year when you do your calculations, the book value of the ice cream truck will be $18,000. Get instant access to video lessons taught by experienced investment bankers. Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts. Per guidance from management, the PP&E will have a useful life of 5 years and

Conversely, the average income of a nonexempt employee will typically be less than their exempt counterparts. At the same time, a nonexempt employee could actually lose money if they don’t have the benefit of a consistent schedule. Other positions, such as with airlines and auctions, may still be subject to the minimum wage but exempt

As mentioned, there can be a contra account for any type of transaction depending on a company’s needs. Other than the above contra-asset accounts, we often see contra-revenue accounts for any sales returns or sales rebates. Revenue is an income statement account, but it flows through to the equity section of retained earnings as well.

You can make them billable to customers or projects, add markup, and make them recurring. Our free QuickBooks tutorials will teach you the basics you need to know to start keeping the books for your small company or employer. Don’t be intimidated by the size of the tutorial―take one lesson or tutorial at a time.