Stockholders’ Equity: What It Is, How to Calculate It, Examples

The SE statement includes sections that report retained earnings, unrealized gains, losses, contributed (additional paid up) capital, and stock (familiar, preferred, and treasury) components. Retained earnings are calculated by first adding the beginning retained earnings (from the previous statement of stockholders equity year’s balance sheet) to the net income or loss and subtracting dividends paid […]

Governmental Accounting II and Nonprofit Accounting

Incorporating these elements into a nonprofit’s operations helps create a solid foundation for maintaining accountability, adhering to transparency standards, and complying with applicable laws and regulatory requirements. Most for-profit organizations’ main goal in accounting is to earn the largest possible profit. However, nonprofits like yours can’t turn a profit by definition—all of the funding you […]

Federal Wage Laws and Certified Payroll: What You Need to Know Now

Federal law, the Davis-Bacon Act of 1931, set wage rate requirements on government funded construction projects (public works projects). The Davis-Bacon Act, along with related state and federal prevailing wage laws, mandates the use of certified payroll by companies involved in government-funded construction projects. These laws ensure fair compensation for labor by requiring employers to […]