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Debit versus Credit (Accounting Acronyms)

Accounting Acronyms In accounting we often use abbreviations or acronyms. For example, GAAP (Generally Accepted Accounting Principles), AICPA (American Institute of Certified Public Accountants), etc. In addition, we oftentimes see abbreviations for debit and credit. We use dr for debit and cr for credit. Learn more about accounting terms, accounting principles, and the accounting equation Click  here  for the Accounting Terms, Accounting Principles, Accounting Equation  review game
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Retirement of Preferred Stock

I recently had a twitter question that I want to share. "Purchased and retired 20,000 preferred shares at $130 per share (assume par value of $100 and we issued the 20,000 shares at $150) -- what's the journal entry?"
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Process Costing

PROCESS COSTING  PROCESS COSTING VERSUS JOB COSTING This will be our first video in the process cost series discussing the differences between top costing and process costing. Let us first talk about job costing. As we have talked before in job costing, we can have three different job costing accounts: Job 100, Job 101, Job 102; and each of those jobs will have a certain amount of product cost. Direct material, direct labor, and overhead are what make up our product cost. Once we have completed those jobs, they move into finished goods, we simply sell the job, and it becomes cost of goods sold. Now if you look at this into t-accounts, we see materials move to work in process. Labor (whether it be direct or indirect) are credited to wages payable and are applied to work in process. Remember, our materials and our labor are a direct cost—they are directly traceable to a job. Overhead is applied to work in process, the sum allocation rate we have created based on es...
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