A company indicates a deficit by listing retained earnings with a negative amount in the stockholders’ equity section of the balance sheet. The firm need not change the title of the general ledger account even though it contains a debit balance. The most common credits and debits made to Retained Earnings […]
Now, to illustrate the formula above we will provide an example of how to calculate the cost of goods sold below. If your accounting software is rounding to the nearest dollar or thousand dollars, the rounding function may result in a presentation that appears to be unbalanced. This is merely a […]