Opening Stock is the value of inventory that is available for sale at the start of an accounting period. This can include finished goods, raw materials, and semi-finished goods. A journal entry can be used to bring the value of this inventory into the books of accounts.
An opening stock a/c, or an account for the value of inventory at the beginning of an accounting period, is usually a nominal account. However, this does not have to be. It can be a credit or debit based account.
Depending on the nature of the inventory being brought into the business, the opening stock a/c can have an entirely different value. In general, the value of the pening stock is the difference between all figures on the increasing side of the account. The account balance can also be the difference between the sum of all figures on the decreasing side of the account.
Closing stock is the value of unsold inventory at the end of an accounting period. This is determined by the cost of the goods. Unlike opening stock, closing stock is not a fixed asset and is valued at market price.
Several entries are necessary to bring in the value of closing stock into the books of accounts. These entries may not be completed in the time it takes to draw up the trial balance. Therefore, a few savvy accountants recommend recording these entries first, then considering them later. Alternatively, the value of closing stock could be derived from the net effect of the journal entries.
If you are using a ledger, the most obvious entry is a debit or credit to the opening or closing stock a/c. But be sure to have the right account for each item. For instance, a $300 debit for a Utility Expense will be posted to the Utility Expense T-account on the debit side.
Another important entry is a journal entry containing a short description of the transaction. A detailed description is optional. You should at least list the date and the name of the transaction. When entering the opening stock a/c, be sure to skip the description space.
Linking a bank account to a brokerage account
Linking a bank account to a brokerage account is a convenient way to access your money. It allows you to transfer funds between your checking and savings accounts with ease. You may also save on monthly maintenance fees. You can link your account at the same financial institution or at different banks. When you do this, you are also able to use online and mobile banking.
Some brokers offer competitive rates on savings and checking accounts. If you have extra income, you should consider how to invest it. Consider your preferences before deciding on a broker. Check for company ratings, customer reviews and customer service networks.
Depending on the type of account you are linking, you may need to complete a small trial deposit. This will allow your bank or brokerage firm to confirm that you are an authorized user. Once you verify that you are, you can link your account. You will need to log in to your online or mobile banking to perform the transaction. In order to do so, you will need to provide your account number, routing number, and username and password.
The amount of time it will take to set up a linked account will vary, depending on the banks you choose. Most banks make the process simple and easy.
One advantage of having a linked account is that it helps to prevent overdraft fees. Overdraft occurs when your checking balance is negative. You will avoid overdraft charges if you are able to transfer enough money to your checking account. Linked accounts can also help you minimize ATM fees.
However, you should keep in mind that having a linked account increases your risk for data theft. Many banks are using the latest security technology to ensure the safety of your information. A biometric login adds another layer of security.
Before linking your banking and brokerage accounts, you should check with several financial institutions to find out how to avoid any issues. You should also consider your personal preferences and how easy you would like to transfer funds. For example, if you are an avid shopper, you may decide to have your savings deposited into your checking account so you can get cash at an ATM.
Calculating capital gains or losses on stock trading
It's no secret that stock trading is a good way to get rich quick. However, before you go blowing your hard earned cash in the stock market of the gods, take a moment to think about how you'll actually feel after you've made the big bucks. The best way to do this is to keep a few supporting documents in a safe place. You'll need them in case the CRA asks for them. For example, you'll need a copy of your stock certificate of ownership or ACB. Also, you'll need a list of your biggest winners and losers.
If you have a spouse, you'll need to decide who's in the family picture and whose whose. This should be a breeze if you're using a service like SharesIQ. Lastly, don't forget to read up on the laws of the universe. Even if you have a stellar relationship, you may still be raked over the coals at the drop of a hat. In short, the only surefire way to make a profit is to plan your moves.
Steps to open an online brokerage account
Opening an online brokerage account is a simple process. There are a few key steps to take, though. These include choosing a broker, deciding on a type of account, and funding your account. You can then begin investing and purchasing investment products.
In order to open an account, you will need to provide basic personal and financial information. The application will ask you to give details about your income, assets, and risk tolerance. It may also require you to answer questions about your investment goals and objectives.
Several firms will require you to complete separate forms. This can delay the opening of your account by a few days. Some firms also have a paper form that you will have to fill out and return.
Before you open your brokerage account, consider your goals and objectives. For example, you may have a child's education or health savings in mind. Also, you may want to invest for retirement. If you have any questions about your choices, speak with a registered financial professional.
Once you have decided on a broker, you can open your account. Most brokers offer an online application form. However, you can also open an account through a brick and-mortar broker. Many brokers now have websites, which make the opening process faster and easier.
Depending on your broker, you can either fund your account with a check or a wire transfer. Several full-service brokerage firms will also allow you to open your account on the mobile app.
When opening an account, you'll need to make sure that you meet the firm's minimum deposit requirement. Some brokerages will also require that you verify the authenticity of your transactions.
To open an online brokerage account, you'll need to provide personal, financial, and identifying information. A Social Security number is often required, as is a valid driver's license.
Some firms will require that you provide an address and a phone number. If you live outside the United States, you'll need to provide a passport. While the opening of your brokerage account can be quick and easy, it's important that you monitor your account regularly. If you see unauthorized trading, report the transaction in writing to the firm's compliance department