Accounting


  • How to Account for Implied Interest on a Notes Payable

    Let's say you were given a loan for $400,000, but only received $300,000 in cash. The difference of $100,000 is assumed (or implied) to be interest. There is no interest rate given, no term length, no payment schedule (e.g. pay X amount monthly or yearly), and no due date. You pay the loan off wh...

  • Reasons to Amortize annual insurance amt when paid monthly

    I am trying to wrap my head around the reasoning why our controller posted our insurance in this manner (she retired and I am picking up the pieces). Example: Our liability policy runs January-December Annual premium is $12,000. However, we pay $1000 every month for 12 months (we receive a m...

  • Quickbooks Online/Transfer/Journal Entry Question

    In QBO we have two checking accounts (two separate businesses). Sometimes money is transferred from one account to another that needs to be categorized so it will hit a certain liability or expense. However, because QBO is only a double entry accounting system, it won't let me categorize it, it w...

  • Batching inventory management software to Quickbooks

    I've been using Quickbooks Enterprise for many years, but a few years ago I started using Connectwise as my main program for customer management, invoicing, and inventory management. Quickbooks is relegated to expense management and financial reporting. Connectwise batches over inventory transact...

  • Do you want to connect your Power BI reports or Power BI model to your Xero data?

    Discover how to seamlessly connect your Power BI reports or Power BI model to your Xero data. Level up your Reports with Data Nucleus. https://datanucleus.co/ Learn more here > https://www.youtube.com/watch?v=6aQO9ERPJD8&feature=youtu.be #XeroData #AccountingReport #Financial...

  • Showroom Display Cost

    Hello everyone, How could an item from stock that will be used for display in the showroom be entered? The item is not going to be soldable again. Under which account should this appear? A friend suggested that we create an invoice for that item with price value of zero to a customer named showr...

  • is there a template for capital expense policy someone would share

    Trying not to have to re-invent the wheel. Request pertains to RE Mgmt industry but any help would be appreciated

  • Recognize free advertising received from a vendor

    Company A was offered free advertising at no cost. Services are non-transferable. All advertising must be co-branded and approved by Company B. How do you recognize the free advertising received in Company A's books?

  • Is this Legal?

    I have an amount of £156,400 that will be divided by 12 payments. When £156,400 is divided by 12 it comes out at £13,033.33recurring. But when you times this by 12 it comes out at £156,399.99recurring. So is it legal to bill 11 payments at £13,033.33 and the last payment at £13,033.37?

  • Financial Liability IAS 32

    sir, if supplier agreed to get his settlement by taking our shares( fixed number of shares) in 3 months time base on a market price at a future date(variable). is this an equity settled share base payment or financial liability?

  • How to classify the obligation to pay back funds

    We have what in practice is a loan, but the agreement is structured such that the company providing us funding owns our inventory and we are authorized to sell it. Its not a lein, they own the product. As we pay back with interest we're essentially buying back our inventory. I know the inventory ...

  • Fixed Asset / Leased Assets

    My company offers services for ATM Machines where some customers buy the machines outright but we also have agreements where we share on the revenue earned at that location. The agreement is usually for 5 years but they still own the machine. My question is regarding if we should book this revenu...

  • Accrual to cash conversion for multiple years

    Hello Everyone,I have a problem I've been trying to figure out for a week now; i'm sure there is an easy answer but i just can't see it.Background:We a small company that keeps financials in the accrual method. But for our tax return, we file on the cash basis.Problem:I normally convert the accr...

  • Simple bookkeeping question re reimbursements

    Hi. I am a somewhat ignorant bookkeeper in that if something comes through I haven't dealt with before, I don't really know how to handle it. Here is my current scenario. Landlord agrees to pay for landscaping services. Tenant hires Gardener. Gardener gives Tenant invoice and instead of pass...

  • Industry advice

    I am looking for some industry career advice. I worked ~10 years in a software company that started out a small, private firm and was acquired by a large public company after 6 years. I had pretty good progression from Senior Accountant to Accounting/Finance Manager and then Director of Billing/R...

  • Revenue accounting from App store

    HI, question any sales that are happening from Apple Store, how that can be recorded in books? Apple charges 30% as a cut on the selling price charged to the customer and remaining 70% is given back to our company. Question- Can we just record the net revenue (70% of sale price) and can igno...

  • How to account for the extension of stock option life?

    My company has previously issued stock options to employees that had a life of 7 years. The options were valued using the black scholes model using the simplified method to calculate the term. Most of the options are fully vested but a few are not. The company has approved the extension of the ...

  • Capitalise installation fees

    Hi All, I am working for a telecom operator and we would like to assess the possibility to capitalise fiber internet installation services. What is the customer has signed the contract to buy an Internet service we send a technician who takes the items from the inventory to install the mode...

  • Help with Costing Methods

    Hi, I'm PhD student with a background in engineering. My PhD is around R&D and AI. Currently, on my NPD (New Product Development) subject, I was assigned with the task of checking the current standard costing methods that can be applied to this sort of activity. My problem, going through b...

  • Preceding year negative balance and current year E&P

    If a company has a negative balance from a preceding year (i.e., a net operating loss), should the current year earnings & profits include an offset to bring that negative balance back to 0 or positive? For example, if the company from 2018 had a balance/loss of -$2000, and in 2019 the compan...

  • Removing Capital Assets from B/S through Leasing?

    I have a non-accountant friend that works in an industry where they add propriety equipment onto other equipment that they sell. Their customers used to buy both outright and capitalize, then went to an 11-yr licensing/leasing-to-buy model. Now, due to the economy, the customers don't want the ...

  • Square Fees

    Hi, I would like to know how do I account for Square fees? I currently use QBO and I haven't included the fees at all. The way I do it is I create an invoice & collect the amount that is deposited into my bank vs what was invoiced and received via square. Could someone provide some insight o...

  • 2Q2020 941 Return Filing - Adjustments for small rounding errors / Amounts Due

    Hi, I have stepped in to carry forward bookkeeping and payroll. I have a question regarding a small amount showing due (Line 14) - $2.76 - (presumably rounding figures) for our 2Q2020 941 Return, which we are going to file. During the 2Q2020, I reviewed each pay period payroll summary (...

  • Cost Accounting

    I am potentially looking for a field switch from Financial to cost/managerial accounting as it seems there are more opportunities in cost than financial (side bonus starting salaries seem to be higher too). All my experience is in the financial side of accounting though, and I do not want to set...