Accounting
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Bonus for fundraising
Can a bonus paid to an employee for closing a fundraising round be deducted from APIC?
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Recording expenses in multiple currencies
My company will only pay expense reports in either GBP or USD, but we have employees, very rarely, who will make purchases in other currencies. Usually, they use a debit or credit card and then will enter the transaction amount from their statement on to their expense report. However, we had an emp…
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Trusted Smart App to scan and organize receipts, any suggestions?
The purpose of this is to reduce paper and simplify organization in the event of an audit. This is not a question to incite debate: Is there a trusted, easy app (Google or AppStore) that employees/subcontractors can utilize to quickly scan receipts? I do not need it to be free and I fully …
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Entry for Conversion of Convertible Notes
I have a client that raised $1MM in convertible notes at a $10MM cap with a 20% discount. They subsequently received their Series A investment of $10MM at a $40MM pre-money valuation at which time the convertibles converted into equity. The question is: what is the journal entry to reclass the conv…
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Revenue Recognition Question Please Help!!!
I'm studying for the CPA and it says that under revenue recognition when you have a "call option" to repurchase an asset at a later date for more consideration than the sale price you would book an Debit to interest expense and a Credit to financial liability for the difference between the sale pri…
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What is considered turnover vs. revenue for a platform like Airbnb/Etsy?
I am currently creating an online platform where people can offer services. A simple example to explain. Person X is very talented in service design and offers his services on the platform. Company Y urgently needs help for designing a new client offering and decides to hire person X through the pl…
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How to account for FX swap
Wanted to get input regarding accounting for a currency swap as haven’t done this before: Near Leg: Value Date: 07/04/2018 Amounts: GBP 100,000 EUR (113,992.61) Far leg: Value Date 07/07/2018 Amounts: GBP (100,000) EUR 113,648.10 What is the correct double entry to…
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Contract date
If a contract's effective date is in October but was signed in December, would rev recognition begin in Oct or Dec? Considering we haven't adopted the new standards
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Proper recognition of deferred fees and costs?
Good day all Under FASB 91, as a lender we are to recognize loan origination fees and costs over the life of the loan. In my office there is some discrepancy of how we go about accounting for this. Can someone explain the proper way to record these fees? Since we are not allowed to record inc…
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Financial Statement Presentation of a Converted Corporation
Hello, I had a question about financial statement presentation for an audit. In 2017, an LLC converted to a Corporation mid-year. At the time of the conversion, the net income to date was closed and allocated to the Corporation's equity. On the financial statements, I am unsure if we need to tre…
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E-commerce platform
Hi, We will be developing an online e-commerce platform for buyers and sellers to transact. We will charge a fixed % of platform commission for the usage of platform. Payment gateway merchant will collect the amount paid by buyer which consist of seller's cost of item, shipping fee and platfo…
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What next after a CPA and 15 years of experience
Hello, I'm a CPA with 16 years of experience listed below from the latest to oldest 5.5 years Tax Accounting (ASC740) 3.5 years private company financial reporting 7.0 years Big 4 public accounting firm (Financial audits) I feel I'm hitting a road block in my career. I've been in the same p…
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Required documents for Auditing!!!
Hi all, I was wondering, for auditing purposes, do I need to have document explaining Rent payment? or for example some expenses like office cleaning, that we pay cash on receipt (By check- no invoice or bill) Generally, for expenses without Bill, what is the procedure and obligations? Best wi…
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Fixed Assets purchased at a discount
Hello. We purchased several fixed assets at a significant discount because a similar company was going out of business. In our financials, we recorded the assets at cost and they are depreciating in accordance with policy. Does replacement value need to be factored into the valuation at all, or t…
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How do I account for old cost from an audit when previous year is closed?
An insurance audit created an additional bill for premium to my company. That audit covered a period between November 2016 and march 2017. A CPA firm completes the owners taxes for the company and has already completed taxes for 2016 and 2017. The company is an LLC so going back to allocate this…
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need career advice
Need career advice on how to get out of the nightmare situation that I’m in. My LinkedIn profile: www.linkedin.com/in/christopherrobinpeterson/ Working for a large utility company in Minneapolis/Saint Paul that rarely hires anyone who starts as a contractor. I have applied to jobs with them…
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GDPR is a regulation that requires businesses to protect the personal data and privacy of EU citizens for transactions that occur within EU member states
GDBR law will become effective on 05/25. Just wonder if any companies in US having no entity in EU are required to implement this law or not. If so, please share the implementation experience in terms of implementation cost and resource.
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Accounts Receivables Journal Entries and Accruals?
Hi there What all journal entries are required to be posted in accounts receivables. What accruals means in context of accounts receivables. if we don't receive payment on month end then what entries are to be posted. If someone says that we have received invoice this month for the last month what…
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Treatment of Bad Debt expense
Hi, I want to ask that when we collect previously written-off receivable, we make entry of Dr Cash Cr Allowance for Doubtful Debts. And, earlier we had already passed an entry of Dr Bad Debt Expense Cr Allowance for Doubtful Debts In the above case, we put the bad debt …
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What is a reasonable window from the date an employees incurs a reimbursable expense to when it must be submitted for reimbursement?
I have had expenses submitted any where from 1 day after the expense was incurred to as much as 9 months. Our current policy requires reimbursement request to be within 30 days from the date the expense is incurred.
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FREE e-course: Accounting in 1 Hour + Free E-Book
I would like to share a free e-course on Accounting for anyone who wants to refresh their memory about debits and credits. Please let me know what you think about the delivery of the material. Enjoy! https://www.accountingsky.com/p/accounting_in_1_hour
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Accounting treatment for assets on hire
One of my clients are involved in the business of importing medical equipment and hiring them out to hospitals. The company does not charge a significant payment from the customer in the initial stage, however recovers the investment through monthly rentals and consumables. The asset is used by …
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Training for the self-employed
Hi there, I'm helping out a friend and I wanted to get some advice please to make sure I have things clear. She is self-employed, and she will be going on some training which she is funding herself. It is relevant to her business, and she tells me it's a mixture of updating current skills and le…
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