Accounting
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How to account for payment made by lessor to terminate legal agreement
Hi everyone, I have a question regarding accounting for the legal payment made by a lessor to the company (lessee) to terminate a rental agreement of leased communication lines. The lessor would like to terminate the current operating lease agreement we have with them so that they may enter into…
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Journal entries for accrual of deferred commissions
I understand the concept of deferred commissions, but I am having trouble with putting together the initial journal entries with regards to the deferred commissions. I understand that deferred commission is a cost that is incurred for obtaining a new contract with a customer. These costs are then c…
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Accounting Systems for small businesses
I see many startups using QuickBooks and QuickBooks Pro vs Premier accounting systems. The problems with these accounting systems is that they do not have an audit trail. Historical changes can be made in any month, so a simple review of adjsuting entries is not possible. What is the next best…
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Student Question
Hello I am first semester accounting student and am doing a report on challenges in the field of accounting. I posed this question to someone who has worked in the accounting field for a number of years and their response was the challenge of keeping current and up to speed on the various rules an…
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Accounting Treatment of Settlement (Never Reached Court)
My (small) corporation's tree roots caused damage to several people's homes. The two sides' attorneys went back and forth on this for over a year. The homeowners threatened taking the corporation to court. The corporation acquired a new attorney. The new attorney advised the corporation to settle a…
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What should be the Invoice timing??
Help is needed... I wanna know that what should be the proper timing of producing the invoice? 1. Once the supplies leave the factory premises? 2. Once the supplies are received by the customer?? Moreover, effect on credit limit, aging reports, unearned revenues and most importantly consi…
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Rebillables in Quickbooks
Hello, we are using QB Pro 2017 and have a balance forward from earlier years in our Rebillable Account. Is there an adjusting entry I can make to zero out this balance forward?
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Accrued Bonus
Bonus Accrual account with balance - X Payroll Bonus Account with balance - Y I need to relieve the bonus accrual account to reflect bonuses paid. Using Quick Books Enterprise I debited the accrual account and credited the payroll account, however in making that journal entry not only does i…
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Franchise tax
Hi everyone, I am new to the accounting tax and have some confusion, could you please help me out? your comment is appreciated! below is the article that I found and please see my question at the end. "The Comptroller is required by law to forfeit a company's right to transact business in T…
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Correct Treatment of Current Portion of Long Term Debt
Dear All, I need some suggestion about Correct Treatment of Current Portion of Long Term Debt. My client acquired Demand Finance of Rupees 20,000,000/- PKR (Twenty Million only) from a Bank for three year. I make their projection how Company Payback their Long Term Loan. Company will payback Princi…
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How to properly revise a digital invoice?
I am using a simple accounting system to create and send out invoices. Let's say I have Invoice No. 18 with an amount of $1,000. I have already sent this invoice to the customer. Now by nature of the accounting system being digital, I am allowed to edit Invoice No. 18 anytime. Let's say I revise…
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Governmental accounting recognition question
Hi all, doing some studying and struggling with this question. I think the answer is C, but I am not positive. Municipality issues general obligation serial bonds for construction of a fire station. Requires reporting recognition in: a. General Fund b. Capital Projects Fund and General Fund c…
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Initial Coin Offerings / Virtual Currency / Tokens
Is anyone aware (and want to share) of any primers or white papers about the above topic from the Big 4 (or 3) ? Still trying to wrap my head around accounting treatments. Anyone gone through the ICO and want to share their experience and maybe offer advice ? If you prefer offline, you can…
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Help with qualitative question related to EBITDA
Dear all, I am in the final hours of preperation for my exam. I need inspiration for some questions to be answered only at a high-level (conceptual). I am happy for your inputs and additional thoughts. Thank you! I hope there is no restriction on student questions. At least it does not seem the …
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Regarding IRS rules for switching from cash to accrual accounting
In order to more accurately state our finances we would like to have our 2017 financials on an accrual basis. However we have always been a cash basis company. At first we thought we would have to maintain two sets of books for 2017 - the accrual books for looking at our finances and cash books f…
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Deferred Delivery of Product Accounting
Hello and thank you in advance for your responses. Our company delivers our main product to customers, and invoices upon shipping. We offer a professional service that we defer recognizing PS revenue until the service has been completed. We have an add'l hardware component (i.e., attachable comp…
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Should Engineering and Purchasing Salaries be included in Cost of Sales for a Manufacturing Company?
I have seen it presented both ways, but want to get other's opinions. Another way to present engineering salaries is to have a separate caption in the GAAP financials as Engineering Costs similar to total G & A and Sales & Marketing Expenses. This lets the reader know the company is inves…
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A/P Accouting Filing System
I currently issue a voucher # for each of my invoices I process and file in numerical order. Sometimes I process more than 100. The software we use allows to input a voucher # when invoice is entered. When auditors come in and audit our files and request to see back-up for a specific transaction,…
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How to properly develop an Unclaimed Propety accounting policy & procedure?
I was tasked to develop an Unclaimed Propeties accounting policy & procedues. What are the best practices? What I should know about? Or even where to start? Do We need to set up new accounts? Any insights or advice will be greatly appreciated.
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How to properly develop a good accounting policy & procedures
I was tasked to develop an Unclaimed Propeties accounting policy & procedues. What are the best practices? What I should know about? Or even where to start? Do We need to set up new accounts? Any insights or advice will be greatly appreciated.
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2016 Top 100 Most Influential People in Accounting
Accounting Today put out their top 100 in Accounting. http://pages.marketing.accountingtoday.com/act_sr_79115_lp.html I can honestly say I know only two names, and one more as being the US Attorney in NY then her present position. Two questions: 1. How many of the 100 have you heard of? 2. Who woul…
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Accounting calendar selection
I've used a 4/4/5 week convention (1st month of qtr = 4 weeks, 2nd month = 4 weeks, 3rd month = 5 wks, 1-2 day difference at year end is tacked onto Week 52) at some co's, and the regular calendar (e.g. Jan 31 days, Feb 28 days......) at others. Getting the sales, logistics, purchasing, warehouse, …
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Capitalizing credit card processing fees to deferred COGS
I was brought in to takeover the accounting for a startup with a history of about 4 years. The company sells monthly (recognized immediately), annual (recognized over 12 months), and lifetime (we recognize over 36 months) subscriptions to it's software. It has been capitalizing credit card processi…
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