After seeing your post today, I clicked on your list of WIPS and picked out one to read based on the title.
Oh, they're not WIPS, per se. Like, they're all *finished*, they're just not tidied up. (Sorry, this is the sideeffect of me organising fics by "finished", "awaiting beta" and "in progress". Just go with the flow, 'kay?)
Taking drawings doesn't actually change net profit. (I'm not sure if Danny is speaking in jest.) In this example, both the gross and net profit is $30. The drawings mean that only $5 stays in retained earnings/owner's equity/capital. Drawings are a CR to Cash and a DR to owner's equity, but don't touch expenses or profit.
*eyes you warily* Okay, I'm thinking back to basic accounting classes, because... damn, Danny was supposed to be *right* there.
*thinks*
Smeggit. You're right. Since when having Drawings been an expense, Annie? Even better question, how did neither Celli or I notice that wonderful theory error? *headdesk*
I don't know how I missed it, but I'm going to blame it on the fact that we were both studying corporate accounting, as opposed to basic intro accounting like Danny here, and were distracted enough by that not to remember the basics. Man, this doesn't make me look good. *feels two inches tall*
no subject
Oh, they're not WIPS, per se. Like, they're all *finished*, they're just not tidied up. (Sorry, this is the sideeffect of me organising fics by "finished", "awaiting beta" and "in progress". Just go with the flow, 'kay?)
Taking drawings doesn't actually change net profit. (I'm not sure if Danny is speaking in jest.) In this example, both the gross and net profit is $30. The drawings mean that only $5 stays in retained earnings/owner's equity/capital. Drawings are a CR to Cash and a DR to owner's equity, but don't touch expenses or profit.
*eyes you warily* Okay, I'm thinking back to basic accounting classes, because... damn, Danny was supposed to be *right* there.
*thinks*
Smeggit. You're right. Since when having Drawings been an expense, Annie? Even better question, how did neither Celli or I notice that wonderful theory error? *headdesk*
I don't know how I missed it, but I'm going to blame it on the fact that we were both studying corporate accounting, as opposed to basic intro accounting like Danny here, and were distracted enough by that not to remember the basics. Man, this doesn't make me look good. *feels two inches tall*