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It doesn't break any accounting rules that I can think of.

when you void the invoice your accounting system should reverse the original entries. The new invoice raised will record the correct amounts.

Obviously, this will all take place in July's...

The best you can do is try to build up a statement of affairs as at the present date.

1. You have the purchase invoices, so you can draw up a list of inventory purchased: item, quantity, cost. ...

When you say 'rental' property, do you mean it is a rental lease?

Sounds a bit dodgy to me. If the cheque has come in with the company as the payee, then it's fair to assume that the claim was made under the company name, or in other words, the claim was made under...

"Miscellaneous" means an assortment of, or several different things that are grouped together under "miscellaneous" because they're not important enough or of enough value, to be listed on their own....

The credit will go to the customer account

Company 1 will:

Dr bank
Cr Intercompany Creditor: Company 2

Company 2 should already have recorded the sale in the normal way:

Dr Customer...

The "verified/non-verified" is just the paypal status. To have an account verified, the account holder needs to transfer a small amount of whatever currency they use to paypal, which is then refunded...

Ah, I see what you mean. Company A should create a provision for the amount of the claim as it hasn't been used yet but a liability to honour it exists. It's not a debit to income though. It would...

"Should this agreement be reflected as a liability offset to income and reversed as revenue is taken on the future product/service revenue?"

I'm not sure what you mean by that - offsetting is...

Setting up a Limited Company in the UK is relatively straightforward - look here for how to do it:

Information & Guidance - Starting a company

And here:

HM Revenue & Customs: Starting a...

Included both where? You can include both in a forecast budget or cash flow forecast, but outside of that, you can't include the estimated ticket sales in any proper accounts.

The expense has already happened so it must be expensed in full in the accounts of F. If H is allowing a period of repayment then in essence, the substance of the transaction is a loan from H to F. ...

Dr the individual purchases to the appropriate expense accounts, and cr the respective supplier accounts, or a sundry creditor account if you don't have individual accounts for wherever the card has...

There isn't - the 7020/1200/1000 is where it's being coded to rather than the amount.

The credit to 7020 will clear off the original debit and create the employee debtor, then the next will...

As you know, total debits and total credits should be equal. So if you add up the debits, then add up the credits, you'll see there's a $40,000 shortfall on the credits, which is effectively the...

You have to write the asset out of the books, record the cash receipt, and account for the gain/loss on disposal. Using a disposal account will help you keep track of things:

Dr: Disposal A/c -...

How do you know they're deceased?

The interest cost was $8000, which is 8% of the opening bal (not given in the question), but means that the opening bal must've been $100,000.

Therefore: op bal $100,000+$8000 interest cost -...

Which accounting standards are you using? Sounds like you're bascially trying to offset which is generally a no can do, except in certain situations.

Have you missed this out?

"19 Paid miscellaneous expenses of $15"

Just a guess, but if you're $15 out, then it could be to do with that.

To book it as income would be misleading because it suggests that it is money that the company has made by carrying out its activities when in fact it's a refund of an expense that has already been...

No, you don't do a reversing entry for amortising/depreciating anything.

I'd be inclined to treat the reimbursement for improvements as a deposit on the overall sale of the asset. In which case you just set up a deposit account in current liabilities in the balance sheet...

If it's material, then yes. Otherwise, just let it go.

1) If the value of the end inventory count is less than you expected it to be, then you have overestimated the inventory account, or in other words, the balance on the inventory account is...

One way of doing it would be to set up an account for the site supervisor in accounts receivable under 'other debtors', then:

Dr Site supervisor - cash advance
Cr Cash/Bank

With the amount of...

They're paying in advance, which is where the deferred revenue account comes in to it. But for them to be able to pay, an invoice must be raised first, which means debiting the Debtor account...

I've had a look into this, and discover that your method is actually fine, so it was quite wrong of me to dismiss it as incorrect. I do apologise.

"b. Adjust bank statement balance to records items appearing in cash book but not in the bank statement - (BS)"

That's wrong. In a bank reconciliation you take the company cash/bank figure and...

In respect of #5, you have to deduct it from the cash book because it will have been recorded there, and because the cheque was returned, it means that it didn't clear, so must be deducted. ...

Normally, stock issued at no par value would be recorded at the amount received i.e.

Dr Bank (with proceeds)
Cr Stock (with the same amount)

but, because in this case a stated value ($20) has...

Have you missed anything out of the question, such as the date the revaluation took place?

By the sounds of it, the revaluation took place 6 months after purchase, which would mean that the new...

These are a gift in accountancy. If you really can't do it yourself, probably best give it up now.

Yes.

Just on the information given, I would argue that ownership passed at the point the goods were approved by the president of the buying company because they were ready to be shipped at that point,...

By the sounds of it, the asset has been depreciated over the lease term rather than its useful life, so still has useful life remaining - after all, who's going to pay $10k at the end of a lease term...

Yes... and No. A contra account only exists for as long the account it is offsetting, so I suppose you could call it a temporary account. Two main examples of contra accounts are depreciation &...

Under the scenario, the gift card has been given out because somebody has spent a certain amount of money on their purchase. I don't know how US GAAP treats this, but under IFRS it would be treated...

You're correct. It is C.

S inc had an opening bal of $7000 and its tax recorded for the year was $3,000, making tax payable $10,000. As the closing balance is $9,400, it must've paid $600.

I'm not entirely sure what this question means by "de accruals". Sounds like some sort of street talk to me: "yeah man, trying to work out de accruals".

But anyway, seeing as it is cash flow...

That's my thinking as well, or in other words, the $3k bad debt has already been accounted for in arriving at the y/e balances of £100k receivables and £7k provision.

It means that Manufacturing's financial year runs from 1 Jan to 31 Dec. Therefore it can only recognise 2 months rental income - Nov & Dec - of $5,000 (30,000*2/12), as earned for the year ended 31...

I'd classify it as a Finance Lease, so if all you're doing is recording the lease inception and first payment then you need to is:

Dr: Lease Receivable $185,000
Cr: PPE $185,000


Then to...

24 hours after having had any alcohol, your chances of passing are 100%.

I agree with you. There are ways that it can be legitimate depending on the business. The substance of the transaction is either the business providing a loan, or, the owner making drawings from the...

In simple terms, to record the amount due to be paid, you have to:

Dr: Utilities expense account
Cr: Supplier account - that'll be the gas/electric/water company

Then, when the money is...

Intercompany transactions are eliminated in the preparation of the consolidated income statement and statement of financial position. It is figures from these statements that are used in preparing...

A utilities bill is processed in the same way as any other invoice.

Income tax is shown in a single line directly under "Profit before tax".