Letter of Credit Example: How Money and Documents Move

Nick Seidel, 42, of Chicago, has had his bank break up with him three times. Then, after an 18-month relationship with Fifth Third, it, too, shut down his accounts. Then, suddenly, Citi shut down everything, including their checking accounts and credit cards. The couple’s attempts to get an explanation led to nothing but frustration. In […]

In accounting, ‘Normal Balance’ doesn’t refer to a state of equilibrium or a mid-point between extremes. By understanding the normal balance concept, you can correctly record transactions, such as the cash injection and the equipment purchase, in your double-entry bookkeeping system. Remember, the normal balance is the side (debit or credit) that increases the account. […]