Questions tagged [accounting]

for questions that relate to the laws, practices, and products of accounting. Please note that questions about accounting that are academic or have no bearing on personal finance are off-topic here.

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3k views

Adding some more value to some existing fixed asset

Suppose i have a computer system worth $600 which i purchased on 1-jan-2012 and now i have purchased more RAM on 6-7-2012, how to do this kind of transactions properly. How to add value to an asset? ...
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2answers
7k views

Why is a coin an asset whereas a note is a liability on the Federal Reserve's balance sheet? [closed]

Can someone explain me why coins are assets and notes are liabilities for the U.S. Federal Reserve? I know coins are made from "precious" metals, but even notes are made from various materials too, ...
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1answer
3k views

How to calculate depreciation?

I am not accountant and my question could be trivial but I will ask it. Let's say that I bought a car that cost $50,000. The maintenance cost over 5 years is $25,000. The revenue of the car over 5 ...
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2answers
4k views

How does IRS deal with 1099s across accounting methods?

For a US company using the accrual method of accounting, if they receive a bill in January 2016 for work done in 2015, I expect they are supposed to report the 1099 income to the biller as part of the ...
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1answer
222 views

Can I count a 2015 expense, if I paid the bill in 2016? [duplicate]

I incurred an expense in 2015, put it on a credit card, but didn't pay it off until January 2016, can I count that as an expense for 2015?
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2answers
76 views

How do I calculate Future value adding fund charges?

Here is the statement on the NEST website. "We take a small percentage of the money going into your pot known as a contribution charge. This amount is 1.8 per cent." They then also charge £15 ...
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1answer
37 views

Question regarding Schedule 13D

I have very limited accounting experience, and I'm looking at the publicly traded firm, QC Holding, Inc. I want to know more about controlling interest in the firm, so I was looking at their SC 13Ds ...
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3answers
17k views

Why is salary a credit if money comes in? [closed]

I am new to keeping accounts. Today I learned that debit is what comes in credit what goes out Then how can we say that salary gets credited when the money comes in?
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1answer
115 views

Future Value of an annuity

If I pay 4 half-yearly installments in an investment scheme or I pay monthly installments of the same time (2 years). Interest rate in both cases is 9% compounded monthly. What will be my future value ...
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1answer
432 views

How would I account in GnuCash for me and another entity contributing to a joint account?

Me and my wife are starting a joint account, separate from both of our accounts. The intent is for both of us to contribute equally to the account and use it for joint purchases. When I make a ...
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1answer
52 views

How to do a direct cash flow statement given a stock ticker

Does anyone know of a good step by step process on how to generate a direct cash flow statement for a publicly traded company? I was able to look up their financial info (given their stock ticker) on ...
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2answers
2k views

How to represent “out of pocket” purchases in general ledger journal entry?

If you use personal money to pay for expenses (advertising, equipmemt), how do you represent this in a journal entry? Normally, if the money was coming from the business, you would just decrease the ...
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2answers
751 views

How to correctly track a covered call write (sell to open) in double-entry accounting?

I recently started using gnucash for personal accounting, but I guess this question doesn't depend on the software. I sold a covered call, and I'm not sure how to keep track of that in the double-...
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1answer
168 views

Need some advice on how to manage multiple income sources

I need some advice on how to manage multiple income sources. I am a programmer/entrepreneur that has started a couple of side businesses online and just need some help. Here are all my income ...
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2answers
5k views

How to account for Unrealized Gains in a Trial Balance?

Using GnuCash, When I run a Trial Balance on my accounts, my Debits exceed my Credits by 875.00 wich is the same amount of my Unrealized Gains on the Balance Sheet. How do I reconcile this in my ...
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1answer
198 views

What does “writing down” the value of an asset imply?

My question was inspired by this article. Relevant quotes below: Fidelity, the only fund manager to have invested in the four-year-old company [Snapchat] best known for disappearing photos, wrote ...
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1answer
776 views

Accounting treatment for small bank verification deposits?

How do I record small deposits (e.g. $0.05, $0.07) as a result of bank verification for purposes of accounting? As income? Negative expenses?
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1answer
35 views

Comparison of online brokerage tax preparation features?

I'm trying to find a comparison of online brokerages when it comes to speeding up year end tax preparation. Especially when it comes to doing return of capital (RoC) calculations for REITs and MLPs. ...
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1answer
71 views

How to account for future claims to savings account?

Example: $1000 is in savings account Expected uses 1. Upcoming Annual Professional Dues: $300 2. Upcoming Annual Insurance : $700 Initially Asset: CASH SAVING 1000.00 Liabiltity: ...
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0answers
181 views

Can I reclaim VAT on U.S services such as Domain hosting?

I have a bunch of regular payments paying for hosting and other digital services coming from the U.S. There is no TAX stated on the invoices I receive and I'd assumed unless stated, then I cannot ...
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1answer
2k views

Is there a difference between managerial accounting and financial accounting?

In many universities and schools, there is both a Managerial Accounting and a Financial Accounting course. From what I can gather, Financial Accounting covers accounting from an perspective of an ...
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1answer
13k views

What does it mean when a business reports its costs on a “fully loaded basis”?

What does it mean to ask a private business to report their costs "on a fully loaded basis"? And then to ask them to "please indicate the fully loaded basis for which the costs are reported"?
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2answers
7k views

What does Capital Surplus mean?

Given this information below, what does capital surplus mean? When does a capital surplus go up? What is the formula of capital surplus? I have read Wikipedia's definition, and it only seem to ...
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1answer
117 views

How do you Record Revenue from ads?

I have a website with an increasing traffic so I decided to make it as a business and add ads into the website. I'm currently in the process of registering my business and I don't get how would I ...
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1answer
693 views

As a small business owner should I have a separate account for payroll? [closed]

Note: I'm currently using cash basis accounting. Just recently I've started using QuickBooks Online to keep track of my profit and loss as well as pay my employees. The problem I'm facing is that ...
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1answer
488 views

Which type of company accounts to choose for LTD tax return?

I'm trying to file a File company's annual accounts on Companies House WebFilling website, however I've the following type of accounts: Abbreviated Accounts These audit exempt accounts are ...
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2answers
981 views

Balance Sheet Retained Earnings

Trying to get my head around a balance sheet and can't make sense of the fact that a company can make year on year profits and pay out dividends each year, yet the retained earning deficit increases ...
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3answers
1k views

Does a company in the UK have to pay taxes on betting winnings?

Betting in the UK is taxed on the company level so the bettor doesn't have to pay taxes on his winnings. I have a company in the UK whose only objective is to trade on sports betting. Will I have to ...
2
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3answers
100 views

How to journal an expenditure that provided no value

Let's say I buy a logo on a service like Fiverr for $5.50. The logo doesn't meet my needs, but I'm still obligated to pay the graphic artist for services rendered. If the logo had met my needs, I'd ...
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0answers
91 views

Quickbooks credit card reconciliation

When I put a payment into Quickbooks through the enter bills section and then pay it, when I go to reconcile the account the payment does not show up. Why would this be and how can it be placed in the ...
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0answers
54 views

Avoiding tax complexities of MLPs

I would like to invest in master limited partnerships (MLPs) for their high yield, but would like to avoid their tax complexities. If I buy exposure to MLPs through an ETF or mutual fund, will that ...
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0answers
248 views

Salary vs Dividend: is this example wrong?

I saw a link to a great article in old (2012) question. http://vereecke.ca/index.php/articles/will-that-be-salary-or-dividends/ I've tried understanding the article well, but I think that the author ...
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1answer
91 views

Switching Accountants - who does the audit review for past years?

If I switch my accountants, and the later CRA audits my returns (that were done with the previous accountant), who will be responsible for helping me with the audit: the new accountant or the previous ...
3
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1answer
121 views

Where should I start my LLC?

I want to release an iPhone app to the App Store and want to put my company name as the app's "seller" field. I was thinking of starting an LLC because I'm working alone and want to hire a developer. ...
3
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1answer
535 views

How does Walmart account their expired food [closed]

Businesses such as Walmart makes tons of short-lived fresh food everyday (Bread, Coffee..etc) and at the end of the day there's so much food left unsold how do they do accounting for those food? Is ...
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3answers
38k views

What is the difference between equity and assets?

I am (going to be) using GNU Cash, which uses the double-entry method; I use it for personal finance. Reading various tutorials for GNU cash, it lists 5 types of accounts: income, expense, assets, ...
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1answer
90 views

Do I need to pay US tax if my father puts half of his company (in the Dominican Republic) in my name?

I am a permanent resident of the USA (a green card holder) eligible to apply for citizenship, but I do not know how convenient this might be in my situation. My father has a company in the Dominican ...
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1answer
184 views

Must tangible assets be depreciated or can I take a one-time expense? [closed]

Let's say my company purchases some tangible/fixed/long-term asset. Am I required to take a prorated depreciation expense each year for the life of the asset? Do I have the option to report the ...
3
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2answers
1k views

How should I record invoices in foreign currency in GNUCash?

I'm a Canadian living in Canada and I've recently started a new contract with a client in the US. My previous contract specified payment in CAD while my new contract is in USD. I invoice once a ...
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1answer
725 views

How can I import customers and invoices from a previous year's Gnucash file?

I've been using Gnucash for the past year for small business accounting as a self-employed contractor. I've read that it's a good practice to create a new file for each year. Now that 2014 has ended,...
2
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1answer
115 views

Balance sheets & bad debt accounts [closed]

I have a confusion as to whether bad debt accounts are factored into the accounts receivable of a company's balance sheet? To clarify/illustrate my question, If a company is expecting $3000 in ...
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2answers
175 views

Could somebody explain Wikipedia's VAT example calculation to me?

Wikipedia example here. I could not understand why in this example ("With a value-added tax" subsection) the government charges 0.10 = $1 × 10%, but not 0.11 = $1.1 × 10% The manufacturer spends ($...
3
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1answer
461 views

How do I record monetary advances and money spent thereof in personal accounting?

I have recently (i.e. from the beginning of 2015) started tracking my personal finances with GNUCash, without any previous experience in accounting. While the interface is mostly intuitive (thanks to ...
2
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1answer
228 views

Considerations for switching accountants?

I had a bad experience with my accountant this year. Normally things have gone smoothly enough. But this year was complicated, and I didn't help myself by doing some stuff (not relevant here) to make ...
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0answers
30 views

How to book past year's transaction, performed in the current year?

I have a small business. I contributed $1000 towards SEP IRA for year 2014. However, the transaction was done in January of 2015 using the retained earnings of 2014. Obviously, this money is tax ...
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1answer
92 views

Do proceeds from a sale count as income for the decedent or the estate when agreement is prior to death and payment is after?

This is a question about US taxes and accounting. The documentation I've read says that if an estate is run on a cash accounting system, then any income received after the decedent's date of death is ...
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1answer
7k views

How should accounting software be categorized in terms of business expense?

I'm using online payroll software to manage payroll for employees and contractors. What category would the expense of this software fall under?
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2answers
521 views

How do I account for 100 percent vendor discounts in GnuCash 2.6.5

Consider this simple scenario, where I am running the accounts for a small business. No need to get into fancy standards (e.g. GAAP). A vendor sends my company a bill for $100. The work is complete ...
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1answer
186 views

In double entry book keeping terminology, what is the term or expression for when a journal entry both debits and credits the same account? [closed]

I configure point of sale software and thus deal with my clients' accounting people. I need to know how to properly express to them this situation, when they describe it. Thank you.
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1answer
114 views

Rationale behind discount bonds?

I'm trying to understand if my rationale behind discount bonds is correct. Let's say Company X issues a 2 year $1000 bond at 5%, market interest rate is 10%. Because the coupon rate < the market ...

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