Search:

The affect to your accounting system is that you are recording part of the sale in June and part of it in July. For example, if you bill the customer $100 in June, then June sales are $100. But if in...

Yeah, your explanation of the table and the way the software works is a bit confusing. So, perhaps the thing to do is address the issue of "credits." Because "credit" can mean differing things to...

Pretty much. If you haven't been keeping track of your inventory prior to this point, the only way you would know what your current inventory should be is to go back to the very beginning of when you...

Your use of the term "restricted income" is the thing that is causing some confusion. Cash is a balance sheet account; it's an asset. The account you affect when you debit cash while crediting income...

That sounds like an unusual thing to do but you should be able to accomplish it by creating a new account in your chart of accounts called "restricted income" and then use the account when entering...

Start by performing a physical inventory count to establish your beginning inventory. Then track your inventory as it is received and as you sell it. If you're not using accounting software, or are...

Are you trying to record cash received from refinancing/getting a loan? What type of account is "HST paid on purchases?" Please provide more information.

The answer isn't that easy in your case. What is the agreement between the two of you? Is this a rental property or just a property you are holding in hopes of appreciating value? Are you treating...

If I may chime in here, I think you're confusing cash flow with profit. If the loan had come from a bank, you would still have to pay them even if you had no profit. Hopefully in that case, you would...

In the U.S. we don't pay VAT; instead it's called sales tax. And most basic foodstuffs, such as eggs, are not subject to sales tax.

1. Yes, you can write off assets from a particular year if they are fully amortized. If they aren't, only if they have been disposed of.

2. I'm not sure about purchasing software and then...

Ok. What is the most basic accounting equation? Assets =...

Next, think about how owner investments and draws affect equity. Then think about how net income or loss affects equity. I know I'm a...

Not really. A membership loan should not appear on the P&L. The loan (I assume the non-profit is loaning the money not borrowing it) is an asset to the company that should be listed in the chart of...

I agree with pready. If the framed tapestry will be going to the owner's home, then it is a personal expense not a business expense. The bill should not be paid by the business. Instead, she should...

Not sure how you did on your exam but giving you the detailed solution wouldn't have been the right thing to do. If you're going to be a good accountant, you need to learn this stuff. And learning...

Hi Joanna, You use the term employee (which implies payroll expense) but then indicate that you made a payment of 500 as a supplier (which would not be payroll) so I'm confused. But I envision your...

Shelley, sometimes you have to dump a difficult client. Now, if it's a management company that you're dealing with, have you told the clients directly about the trouble that you're having getting...

My answer to your question is no, it may not. It's not enough to just know how much they paid you, you also have to know how much you billed them for during the year. That's how you would know if...

Ah, it's you receiving the 1099. The question is then, how much did you bill the customer in 2014? If you billed them for $50K and they paid you $50K and you still show open invoices, then it sounds...

Try having one person hold the metal rim in place while a second person turns the globe to the left. It may take some force so don't be too timid.

Cash is represented by amounts in your bank accounts. So the question is, what is represented by "Bank Overdraft?" Is that a check that you issued that didn't clear your bank or a check that someone...

Easy is a relative term. However, speaking as someone who used to be married to a plumber, it's not that big of a deal. No, you will not have to run new pipes. Basically, you will need to remove the...

To provide a little more clarity, if you used cash to pay for the permit, then yes, you would credit cash. But if you used a check, then you would credit your checking account. FYI, if you are using...

Legally, I believe that yes, your C-corp can forgive the interest receivable and renegotiate the terms of the existing debt. However, from a tax perspective (meaning can you deduct the bad debt on...

Your question is unclear. By definition, any invoice with a balance is unpaid. But it could be partially unpaid or fully unpaid. If you received an invoice from a vendor for $1200 but only paid $600...

An intangible asset to be precise.

Cost of goods sold is calculated as follows:

Beginning inventory + purchases - ending inventory = COGS

Your sales for the year is not a factor.