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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3
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3answers
3k views

Is it okay to issue myself a 1099 from my LLC, of which I'm the sole owner?

I own a small publishing company and occasionally publish my own books. I want to track royalty expenses on the products I've written, so my plan was to pay myself royalties, book it as a royalty ...
16
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2answers
12k views

Starting with GnuCash. How to eliminate automatic entries ending up in the “unbalanced” account?

I just started using GnuCash and there is something I do not quite get how to get rid of (and whether I should try to get rid of). When I start importing transactions, I have expenses, income, etc. ...
0
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2answers
352 views

Expensive agenda book/organizer. Office expense or fixed asset?

I am unsure how to book an agenda book/organizer that was purchased for our business. Normally I book office/organizational expenses (notebooks, printer ink, etc.) as "Office Expenses" but the cost ...
2
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2answers
159 views

Calculating the cost of waiting longer for money

I'm trying to calculate the cost of waiting 30 extra days to receive money from a customer. Here's the situation: How much would this cost a company per year if a customer pays us in 60 days vs. 30 ...
3
votes
1answer
132 views

Accounting: Should a fee on an amount payable be applied in AR or AP account?

An application I'm building has a simplistic double-entry accounting component to it to keep track of funds passed owed to various parties. I'm unclear on how certain entries should be applied. Take ...
0
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1answer
867 views

How do I deduct from Sales Tax Payable in Quickbooks?

(This question could probably use a better title) My current process for paying sales tax works as follows: I collect payments against invoices from clients throughout the month As I collect these ...
0
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1answer
308 views

Sales taxed amount in Accounts Receivable?

When I enter a new invoice for a client, for example $1062.50 ($1000 + MA sales tax) do BOTH Accounts Receivable AND Sales Tax Payable go up by the following? Accounts Receivable +1062.50 Sales Tax ...
1
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1answer
99 views

What does a high operating margin but a small but positive ROE imply about a company?

I'm analysing this company and am curious to what these figures mean about the operation of the company. Can someone comment on this?
9
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3answers
1k views

Is there a dollar amount that, when adding Massachusetts Sales Tax, precisely equals $200?

I am confused about calculating Massachusetts Sales Tax (6.25%). Is there such an amount, that when added to its sales tax, equals $200? The reason I ask is because my business has been charging $...
2
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2answers
134 views

Accounts Receivable included in Gross Sales?

I am trying to determine my sales tax. In a given quarter, let's say I close a deal for $2000 and collect $500 as a deposit. Which number is considered in my "Gross Sales", the $2000 or the $500? ...
1
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1answer
13k views

How to report a bill was paid in journal entry?

I have a couple bills in my name in QuickBooks from business expenses that I paid for personally. I have since paid myself back ("paid the bill") but it was during the early months of my business (no ...
3
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1answer
4k views

How to record expense sheet as journal entries in Quickbooks Online?

Let's say I own a business and I make 3 business-related purchases on my personal credit card in August. Given the following example expense report: 08/01/2011 - $20 - Web Hosting 08/05/2011 - $130 -...
2
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1answer
1k views

How to account for money earned and spent prior to establishing business bank accounts?

In terms of QuickBooks... How does a newly started business, an LLC in my case, account for payments received and money spent PRIOR to having organized business bank accounts in place? Is there a ...
3
votes
1answer
219 views

How important is reconciling accounts for a small LLC (Quickbooks)?

We are in our first year of starting a small LLC. We are using Quickbooks Online and things are going well. The only exception is that, due to our lines of credit and bank accounts being personal (...
6
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2answers
593 views

Consider Paypal fees in accounting

I'm a freelancer. I sent an invoice to my client (using InvoiceBubble.com), which he decided to pay via Paypal. Paypal took a fee. How do I take this fee in consideration for my accounting? I marked ...
3
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2answers
4k views

How to transfer personal auto lease to business auto lease?

What is involved in transferring a personal auto lease to a business auto lease? We have a car for our business that was leased prior to establishing our LLC, therefore it is under our names, ...
4
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4answers
242 views

How should I account for Social Security contributions?

I'm currently tracking all my finances with GNUCash, and splitting the various paycheck deductions into expenses. It's pretty nice to be able to correctly predict what will be on my W2, and it's even ...
6
votes
1answer
151 views

How do I interpret these income tax numbers for Chinese public company Dangdang Inc. (DANG)?

I'd like some help with understanding the financial statements of E Commerce China Dangdang Inc (ADR). You can see the Income Statement/Balance Sheet/Cash Flow statements on Google Finance. If you ...
3
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2answers
2k views

What can a CPA do that an EA cannot, and vice versa?

A lot of the responsibilities of CPAs and Enrolled Agents appear to overlap, but could someone outline the key differences? When would I choose to hire one versus the other?
4
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3answers
389 views

Help in understanding a basic accounting principle

'An entry which increases an asset account is called a debit.' So if my bank account is my asset account, when I debit money, money actually goes out so it is a 'decrease'. But the above statement ...
3
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2answers
662 views

How to consider stock splits with respect to ETFs? Any different than for regular shares?

"Splits are used to increase the availability of shares on the market." I am unsure about this statement because you can increase the availability of shares through third-party funds like with ...
4
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1answer
2k views

How is Net Present Value (NPV) superior to Equivalent Annual Cost (EAC)?

Although EAC presents advantages by taking into account the lifetime of the project, my professor recommends using NPV instead of EAC. Can anyone explain why NPV is considered superior to EAC?
5
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1answer
244 views

Marriage merger of finances and continuity of records

I just got married last week. Yay! I've been using Microsoft Money for 15 years. I have one gigantic file that has all of my transactions since early 1996 in it. I can use it to generate all kinds ...
4
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1answer
4k views

Accounting treatment for store credit

I just got store credit when I returned some bad juice. This left me wondering. Which accounts receive the entries when a store issues store credit? For example, when I made the payment for the juice,...
6
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1answer
2k views

GnuCash bookkeeping for account contributions to accounts having annual contribution limits?

I'm using GnuCash, and trying to figure out how to structure a couple of accounts to track contributions to accounts like Roth IRAs and HSAs that have an annual contribution limit that I need to track....
2
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1answer
401 views

How to represent “money down on new contract” in general journal (general ledger)

How would the following scenario be represented as a general journal entry? Jan 1, 2011: Customer signs contract for $1000 and pays $500 as a down payment and agrees to pay the remaining $500 at a ...
3
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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 ...
5
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2answers
106 views

How does one apportion returns to multiple investors when their times and amounts of investment were different?

No accounting experience here. The problem: Man A invests $10 on day 1. Man B invests $5 on day 4. Man C invests $85 on day 5. On day 7, the $100 returns 10%. How do you fairly distribute it?
5
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4answers
385 views

What could be the harm in sharing my American Express statements online?

I would like to store my American Express statements in Google Docs so that my virtual assistant can log the line items into my accounting spreadsheets. It is also handy so that they are in one place ...
3
votes
3answers
663 views

How to account for a shared mortgage in QuickBooks Online?

I co-own a house with two unrelated friends. We have a single mortgage that we're each responsible for our fraction of. We've been keeping track of our payments in a spreadsheet but for a variety of ...
3
votes
1answer
2k views

Quickbook Balance Sheet showing strange numbers (to me at least)

I have been using quickbooks for some time (less than a year) and today when I was looking at my balance sheet I noticed something that seems really strange to me. My Total Assets number is $300,000. ...
5
votes
2answers
504 views

Where do expense ratios show up on my statement?

This answer describes the lowered expense ratios of Vanguard admiral shares compared to Vanguard investor-class shares. How do I tell from my statements that I am saving money through the lowered ...
4
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1answer
530 views

How do I track investment performance in Quicken across rollovers?

I use Quicken to track investments. I'd like to track performance. Here is a situation that feels wrong: I buy stock S for $10/share. I hold for 5 years. I sell S at $20/share and buy S2 for $20/...
4
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3answers
422 views

How do I add my income to my personal finance balance?

I've never understood accounting really, apart from the basic concepts. Supposing I want to keep a better track of my money, I'm using Excel at this moment. I guess I need to move to some double entry ...
6
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2answers
367 views

Nit picky personal accounting question: What is the right way to record borrowing from yourself?

I keep a spreadsheet with my personal financial statements (balance sheet, income statement, cash flow) that generally follows the corporate approach. I omit considerations of depreciation, etc. There'...
5
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1answer
1k views

Can dues and subscriptions expenses be deducted 100% to calculate taxable income in an LLC company?

I'm using Quickbooks Online, "Dues & Subscriptions" is one of the expense accounts we have. I would like to know if this expense can be deducted 100% for calculating my taxable income. Our company ...
8
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3answers
4k views

What does “write-off” mean?

I've heard this term throughout my life but I've never been entirely sure exactly what it means or why you would want to write something off.