In the world of finance, entities may experience financial distress, prompting them to restructure their debts to continue operations. The Accounting Standards Codification (ASC) Topic 310-40, "Receivables - Troubled Debt Restructurings by Debtors," provides guidance on accounting for troubled debt restructurings (TDRs). This article delves into the modification of terms transactions in TDRs, explaining the process and providing journal entry examples to help illustrate the concept.
Effective financial management is crucial for any manufacturing business, and a well-structured chart of accounts (COA) plays a vital role in this process. The COA is a financial organization tool that categorizes and systematically records a company's financial transactions, providing a clear overview of the organization's financial health. In this article, we will discuss the importance of a chart of accounts for manufacturing businesses, provide an example COA template, and explain the hierarchy of accounts.
Managing inventory is a critical aspect of running a successful retail business. Accurate inventory valuation is essential for proper financial reporting and decision-making. ASC 330-10, Inventory - Overall, provides guidance on inventory valuation, including the retail inventory method (RIM). This article explains the retail inventory method transaction under ASC 330-10, along with illustrative journal entries.
In a business combination, a bargain purchase occurs when the fair value of the net assets acquired exceeds the consideration transferred by the acquirer. ASC 805-10, Business Combinations - Overall, provides guidance on accounting for bargain purchase gains in a company's financial statements. This article explains bargain purchase gain transactions under ASC 805-10, along with illustrative journal entries.
In the course of conducting business, companies may encounter situations where the tax treatment of certain items is uncertain. ASC 740-10, Income Taxes - Overall, provides guidance on accounting for uncertain tax positions in a company's financial statements. This article explains uncertain tax positions transactions under ASC 740-10, along with illustrative journal entries.