| Subject | Date Asked |
|
| Pensions | 11/22/2009 |
Q: At my place of employment, I have a pension through the state. There are some options that a ...
A: At retirement age, a pension has a fixed value based on the contributions and earnings prior to ...
|
| S & H | 11/20/2009 |
Q: I am new in accounting and I am using QuickBooks. My company is importing items from other ...
A: Generally, shipping and transportation costs are included as part of cost of goods sold, basically, ...
|
| salary analysis | 11/17/2009 |
Q: what approach would you take to do a salary analysis to current vs next year? Expense bridge to show ...
A: Under normal conditions I might look at the trend over the past few years rather then just the ...
|
| expenses papertrail | 11/6/2009 |
Q: I have recently set up a solo pediatric therapy business (LLC, s-corp designation). I am using ...
A: Generally an expense form is used for expenses paid out of a personal account -- checking or credit ...
|
| AT&T RETIREMENT | 11/5/2009 |
Q: OUR AT%26T BUSINESS OFFICE CLOSED IN APRIL OF 1989. I WAS ADVISED THAT OUR RETIREMENT WOULD BE ...
A: Contact the HR, human resources, department of At&T *and* Lucent Technologies. This may take several ...
|
| Recoverable Draw & PTO Payback-Gross Versus Net | 10/31/2009 |
Q: My former employer (I voluntarily resigned), paid me 2 months worth of recoverable draw which ...
A: Keep in mind that the income taxes withheld will be reported on your annual 1040. You received, in ...
|
| office administration | 10/25/2009 |
Q: sir/madam,i am working in a software company as business development and have been promoted to do ...
A: Your question is too broad. There is no answer to your question as it depends on the company. ...
|
| Leasing-Finance or Operating Lease | 10/23/2009 |
Q: I own a business & doing the accounting myself. I rent a photocopier machine from supplier,paying ...
A: For a financing lease, the lease term equals or exceeds 75% of the asset's useful life. And, the ...
|
| payroll taxes | 10/12/2009 |
Q: I am starting a business. Will employ two, at total annual salary of $85,000. For my budgeting, what ...
A: FICA and unemployment taxes are around 10% plus a bit for state unemployment taxes = 12% about. ...
|
| Leasing or Hire Purchase | 10/7/2009 |
Q: I own a business & doing the accounting myself. I rent a photocopier machine from supplier,paying ...
A: There is nothing wrong with your treatment regarding expensing the annual lease payments as rent or ...
|
| Leasing or Hire Purchase | 9/30/2009 |
Q: I own a business & doing the accounting myself. I rent a photocopier machine from supplier,paying ...
A: The question of whether or not you can depreciate the machine as an asset as opposed to writing off ...
|
| Stock dividends | 8/19/2009 |
Q: My brothers and I have started up a C corporation, with 10,000 shares of stock available. 380 ...
A: There maybe state laws dealing with this. You can, of course, have two classes of stock with ...
|
| depreciation | 8/13/2009 |
Q: What do you mean by provision for depreciation?
A: Each year (or normal accounting period) depreciation expense is recorded and offset with the ...
|
| Amotization & Depreciation | 8/4/2009 |
Q: In short, how to identify the different between amotization & depreciation of a fixed asset? ...
A: Amortization is generally taken against intangible assets -- goodwill for example. Amortization is ...
|
| quick books basic 2004 | 7/29/2009 |
Q: I am using quick books basic 2004 to track home owners association dues for a small mobile home ...
A: I have experienced the same problem you have -- credits which could not be applied to specific ...
|
| Reducing Balance Method | 7/27/2009 |
Q: E.G. Purchase a machine at 5,000.00 on JULY 2008.Estimated life span is 3 years.For Reducing Balance ...
A: Normally a declining balance depreciation method means applying a fixed percentage to the remaining ...
|
| quick books basic 2004 | 7/24/2009 |
Q: I am using quick books basic 2004 to track home owners association dues for a small mobile home ...
A: I do not have the 2004 QB version. I you can apply a credit to a specific charge, to a specific ...
|
| Terminted employee vacation pay out tax | 7/21/2009 |
Q: I was recently laid off and was paid out for my PTO. I live in California and I am wondering about ...
A: It's the same. Either way it is included as wages. The only difference may be the amount of income ...
|
| healthcare and small business | 7/17/2009 |
Q: Company A, which employs seven people: a manager, an assistant manager, and five workers. The owner ...
A: The facts of your scenario have nothing to do with the proposed health care plan. In addition, this ...
|
| Depreciation-Reducing Balance Method | 7/17/2009 |
Q: E.g. Our company purchased a Notebook value at 4,818.00 for sales executive. On a/c part, i'll ...
A: Under declining balance depreciation calculations, at some point the straight-line method will be ...
|
| Depreciation-Reducing Balance Method | 7/16/2009 |
Q: E.g. Our company purchased a Notebook value at 4,818.00 for sales executive. On a/c part, i'll ...
A: A straight line depreciation over 3 years is 33% per year (actually 33.333% per year) = $1,606.00 ...
|
| Depreciation | 7/15/2009 |
Q: E.g. Our company purchased a Notebook value at 4,818.00 for sales executive. On a/c part, i'll ...
A: If your depreciation method does not fully depreciate the asset over its useful life, then the ...
|
| Gross-Up W-2 Reporting | 7/15/2009 |
Q: Do the employer paid federal income taxes get reported in box 2 of the W-2 as well as the ...
A: Yes, if payroll is grossed up, the "employee" taxes which would normally be withheld, but are in ...
|
| Accounting treatment for Acquiring and selling line of business from existing company | 7/12/2009 |
Q: we are the whole owner (100%) of a company intend to sell one line of business from our existing ...
A: Your question is not clear. Specifically -- "buyer to pay the proceeds (selling price) partially to ...
|
| Paper work and an incoming job. | 7/6/2009 |
Q: My brother and I have started a screen printing service and I am his office manager. He will be ...
A: There is no specific answer to your question as it depends on how you run your business. For ...
|
| Rent prepayment | 7/2/2009 |
Q: How do i treat a rent prepayment of 6,600.00 paid on the 18/08/2008 in my books
A: When the rent is prepaid: cash credit prepaid rent debit "Prepaid rent" is a short-term ...
|
| Profit Sharing Plans | 6/30/2009 |
Q: Are there any periodic reporting requirements to employees on their account values in the company's ...
A: I expect there is: however, I cannot point to an IRS Code section or other reference to support my ...
|
| Accounting | 6/29/2009 |
Q: I just started working as an intern with a company. what are the first things i should look for in ...
A: Begin by seeking advice from the CPA or whoever is preparing their annual tax returns. Find out what ...
|
| accounts | 6/28/2009 |
Q: Respected sir I have been given the subject of accounts to teach to PG students(no option)but i ...
A: By "accounts" do you mean the setup of the chart of accounts? -- What is a short term asset, long ...
|
| Current Ratio | 6/26/2009 |
Q: Sir, what happened when we use cash i.e current assets to pay the account payable i.e current ...
A: I have copied the figures below from a spreadsheet; I hope you can read them okay. In this example, ...
|
| Current Ratio | 6/26/2009 |
Q: Sir, what happened when we use cash i.e current assets to pay the account payable i.e current ...
A: Well, write down an example of current assets and current liabilities. Then reduce current assets by ...
|
| When would you take a reserve on cash receipts? | 6/24/2009 |
Q: Let's say company A receives some cash from a settlement with company B. If Company A believes that ...
A: I understand that the payment received may have to be returned. I would expect that during the ...
|
| When would you take a reserve on cash receipts? | 6/24/2009 |
Q: Let's say company A receives some cash from a settlement with company B. If Company A believes that ...
A: Your question is a little confusing. If you have received the cash settlement, then what difference ...
|
| Expenditure on fixed assets | 6/22/2009 |
Q: How do i treat the purchase of a used spare part for an equipment eg CAT BULLDOZER. Eg. purchased ...
A: Generally, the transaction would be: Fixed assets $2,000 debit Cash $2,000.00 ...
|
| Flexible Spending Account Refund | 6/17/2009 |
Q: We received our refund for unused FSA funds for 2008. It is larger than was estimated and is being ...
A: I am a little unclear as to whether you are an employer or employee based on the wording of your ...
|
| Payroll taxes | 6/16/2009 |
Q: I work for a small company where we get a bonus at the end of the year for meeting our yearly ...
A: Keep in mind that an employee stock option plan is a type of pension plan. As such, it is not a ...
|
| Accounting of Post dated cheques | 6/10/2009 |
Q: Can I account these cheques and knock off the receivables from my account. and show the chques in ...
A: I do not believe the A/R should be recorded as paid until you have unrestricted access to the funds. ...
|
| Flood loss to inventory | 6/10/2009 |
Q: Book keepingI have inventory that cost $20,000. Due to a flood, I lost $16,000 worth. The ...
A: Setup an account called "inventory loss account" or something like that. Then credit your inventory ...
|
| Wait staff tip/wage rules- Wisconsin | 6/8/2009 |
Q: I know of an employer who "keeps" 3% of the employee credit card tips (I suppose to cover the ...
A: You will need to talk to an employment attorney in that state; I am in Texas. This is not really an ...
|
| Single Member LLC tax question | 6/6/2009 |
Q: I have set up a single member disregarded LLC for consulting. Can I avoid paying quarterly estimated ...
A: No, quarterly payroll taxes are due regardless of the pay period: weekly, biweekly, semimonthly or ...
|
| pension overpayment | 6/5/2009 |
Q: I've just been notified that I have been overpaid in my pension by 72,000.00 and they are demanding ...
A: First, I would strongly recommend your talking to an employment attorney. The question of your not ...
|
| 401k Rollover as Seed Capital into my Start-up | 6/5/2009 |
Q: I'm starting a company and want to use my 401k as seed capital. I've heard it is doable but nothing ...
A: I am not a retirement specialist. With that said, I am not aware of an exception the the penalty for ...
|
| forming a small business | 6/3/2009 |
Q: I am in NYS, wanted to form a small business single person operation from home, I do have a full ...
A: I assume NYS is New Your State. Although your question is experessed simply, it in fact more ...
|
| Normalized Income Statement | 5/23/2009 |
Q: I am looking to buy a business, I was told the best way to look at how much the business makes is to ...
A: I found -- Normalize means: Removing items from the income statement or balance sheet that do not ...
|
| payroll vs income | 5/20/2009 |
Q: What % of my business payroll should my monthly gross be? If my company makes $900,000 per month ...
A: There is no specific answer to your question. For certain industries, there are guidelines, but ...
|
| deferred salary | 5/19/2009 |
Q: I am uncertain how to account for a portion of salary that would be deferred for a long time (say ...
A: I will freely admit that accounting for and taxation of deferred comp is not one of the areas of ...
|
| General Journal entry | 5/19/2009 |
Q: I paid $45k for a business. How do I set this up in the generl journal. What is credited and ...
A: A business can be purchased one of two ways, generally. First, only the assets can be purchased. ...
|
| How to expense time lost for service rendered | 5/15/2009 |
Q: We are sorry, but Mike Wellman wasn't able to answer yourI would like to know if there is a way to ...
A: No, there is no deduction for lost time. Income and expenses are based on dollars, money. If one ...
|
| Accounting for 'Lost Time or Service' | 5/13/2009 |
Q: I would like to know if there is a way to expense lost time -- time spent rendering a service which ...
A: "Lost time" is not really an expense per se. Rather it is simply an offset to gross income if you ...
|
| LLC with owner given salary | 5/12/2009 |
Q: My husband and I owned an LLC; I put him on the payroll; His salary is being deposited back to ...
A: So, you are reporting W-2 wages which are subject to income taxes as well as payroll taxes, both ...
|
| Accounting Career | 5/12/2009 |
Q: I am planning on taking a rigorous accounting schedule next year and receiving my associates degree ...
A: I have been removed from the accounting job world for quite a while. Accordingly I have no idea what ...
|
| bounced paychecks | 5/10/2009 |
Q: Until Friday, May 8th, 2009, I was comptroller for an international company based in Florida. I ...
A: The answer depends on the specific unemployment comp rules in your state. You may likely be able to ...
|
| payroll | 5/7/2009 |
Q: When the payroll period ends on the 28th of the month and the payroll check date is on following 5th ...
A: First question, is the accounting on the accrual basis or cash basis. Cash basis, of course, is the ...
|
| deductions in depreciation | 5/4/2009 |
Q: In an income statement, the entire depreciation is charged as an expenditure, but in the balance ...
A: Deductions to accumulated depreciation are typically attributable to items sold or disposed of. The ...
|
| sales tax | 5/1/2009 |
Q: I am on the board of directors of a 501(c)3 organization in New York. We are a tax-exempt not for ...
A: NOTE: I have no experience with New York sales tax returns. From ...
|
| Bonus overpay | 4/29/2009 |
Q: I recently got a bonus inthe amountof 2,786.05 GROSS, the net from the bonus was 1,716.20. The bonus ...
A: The issue is complicated by payroll taxes. If the gross bonus received was $2,786.05, then your ...
|
| Auto purchase/lease | 4/23/2009 |
Q: We traded in an owned vehicle and then leased a new vehicle. The dealership paid off the remaining ...
A: I do not think this is a tax-free transaction. Even though your new lease payments, in effect, "pay" ...
|
| early retirement pension tax penalty | 4/23/2009 |
Q: My husband is 53 and wants to retire. He has a pension provided thru his union that he contributed ...
A: If you simply choose to take out a withdrawal, then yes, there is a penalty tax on early withdrawal ...
|
| 401K excess contribution | 4/22/2009 |
Q: My company deducted more than $15,500 for my 401K account in 2008 so I filed for a return of excess ...
A: I am not sure what to tell you to do. The best answer would be to contact HR for you old employer, ...
|
| Direct deposit of payroll | 4/20/2009 |
Q: Payroll did not arrive in my direct deposit account. Check processing co says they did everything ...
A: Your not receiving your paycheck is your employer's responsibility, I believe. Keep in mind that ...
|
| sales tax | 4/17/2009 |
Q: When doing accounts payable and you take a purchase discount on an invoice do you calculate sales ...
A: Consider the following: 2% discount off the product cost then calculate the invoice: $100 - 2% = ...
|
| sales tax | 4/16/2009 |
Q: When doing accounts payable and you take a purchase discount on an invoice do you calculate sales ...
A: It is probably the discounted amount. For example: Cost $100 discount 20% Discounted price is ...
|
| Class action proceeds | 4/14/2009 |
Q: We are a small not for profit with an endowment portfolio. We received proceeds from class action ...
A: I would not expect the credit to be an investment income account. Investment income would be the ...
|
| OVERTIME | 4/13/2009 |
Q: If an employee works 4 days at 8 hrs. and 1 day is paid sick time do overtime rates apply to hours ...
A: Generally, overtime is time worked in excess of 40 hours per week. I am not sure about a day being ...
|
| taxes | 4/11/2009 |
Q: he has on his paycheck marital status for feeral S and for state M and we are still married getting ...
A: The filing status claimed for purposes of calculating payroll withholding can be set to be any ...
|
| builder went bankrupt loss of 20k | 4/1/2009 |
Q: before we could sell our house, the builder went bankrupt. Can we deduct this and how?
A: I think this would be treated as a non-business bad debt. The bad debt would show as a short-term ...
|
| Bad Debt to total sales ratios | 3/28/2009 |
Q: Naman, I work for a small family business as their controller. I am trying to help the owners ...
A: Let's begin by considering the company's history. I presume you have historical data to calculate ...
|
| Sales tax | 3/27/2009 |
Q: When doing accounts payable invoices and you have one that you are taking a purchase discount on do ...
A: I have always taken the total on the invoice, including taxes, shipping and handling charges, and ...
|
| Deferred Salary | 3/27/2009 |
Q: "An officer of a C-corp client deferred salary for the past two years. He now wants to waive the ...
A: First, what has been the entry to record the deferred salary for the past couple of years. You may ...
|
| sales tax | 3/27/2009 |
Q: When doing accounts payable and you take a purchase discount on an invoice do you calculate sales ...
A: What do you mean by "purchase discount"? Typically if there is a purchase discount, the seller ...
|
| Changes in assets / liabilities | 3/24/2009 |
Q: I was wondering if "Changes in working capital" is the same as "changes in assets and liabilities" ...
A: Annual sales is typically the sales amount on an annual statement of income. I do not mean to convey ...
|
| Changes in assets / liabilities | 3/22/2009 |
Q: I was wondering if "Changes in working capital" is the same as "changes in assets and liabilities" ...
A: Changes in working capital means changes in short term assets and liabilities -- cash, AR, A/P, etc. ...
|
| 1099 MISC for a student stipend | 3/20/2009 |
Q: I saw you asnwered a similar girls message who had the similar issue of a place of business paying ...
A: If someone has not previously answered your question ... On the form 1040, Individual Income Tax ...
|
| Sale of Land | 2/23/2009 |
Q: Mr Arthur, thank u very much for for helping out with my previous questions. I am a bit unsure about ...
A: The purchase of land is the purchase of an asset. Credit cash and debit a fixed asset account - ...
|
| pension tax exempt | 2/19/2009 |
Q: I receive a private pension and was wondering if this year I will not have to pay tax on it. I turn ...
A: You should receive a form 1099 from the payor; in fact, the payor is required by the IRS to send the ...
|
| Cash transactions | 2/17/2009 |
Q: The problem i have is my boss makes a lot of cash transactions which are not paid from our business ...
A: The journal entry for recording a receipt of cash for rental income is: Cash (or checking account) ...
|
| Accounting | 2/16/2009 |
Q: Mr. Brock paid $50K for a franchise that entitled him to market software programs in the countries ...
A: The phrase "to capitalize his own franchise at $500k means, to me, that Mr. Brock begins this series ...
|
| Handling Cash Payments | 2/13/2009 |
Q: Mr. Naman: I have sought out a policy or procedure on how to best handle "cash payments" according ...
A: The complete discussion of this topic may require more than a single reply. Please feel free to ...
|
| accounting-determining transactions (beginner) | 2/10/2009 |
Q: I am a teacher(9-12) who has been assigned to teach accounting. A question came up that I couldn't ...
A: I might be willing to do some, for lack of a better work, tutoring for you or your students. I am ...
|
| Cash transactions | 2/9/2009 |
Q: The problem i have is my boss makes a lot of cash transactions which are not paid from our business ...
A: If non-corporate cash is used for corporate purchases, it is normally classified as either a loan or ...
|
| Taxable Amount | 1/29/2009 |
Q: Please share the formula to determine the taxable amount of a purchase if all you have access to is ...
A: The formula to calculate the sales tax amount is taxable purchase x sales tax rate. Therefore the ...
|
| Sales tax if I am a reseller | 1/27/2009 |
Q: I have recently started my own company (LLC) and I am also registered as a NY sales tax collector. ...
A: I am in Texas; I do not know if the rules are the same where you are. With that said ... Generally ...
|
| salary shortage due to pay period change | 1/1/2009 |
Q: 2008 Salary $76,000.00 biweekly pay 26 weeks. Friday payday April 18th 2008 was last paycheck ...
A: I am not aware of any accounting standards, payroll standards or anything else to support your ...
|
| salary shortage due to pay period change | 12/31/2008 |
Q: 2008 Salary $76,000.00 biweekly pay 26 weeks. Friday payday April 18th 2008 was last paycheck ...
A: If your annual salary is $76k, meaning no raises, bonuses, etc., then that's what it should be. It ...
|
| Obsolete inventory accrual | 12/19/2008 |
Q: We accrue for obsolete inventory every month. Now at year-end we are actually writing off some ...
A: No, I do not believe you do not have to have an accrual balance on the books at year end. The ...
|
| Purchase/payment journals | 11/26/2008 |
Q: I currently use a double entry bookeeping system, which is quite new for me. My question is...I ...
A: The first question is whether or not your company needs to track accounts payable, a/p. I am ...
|
| Purchase/payment journals | 11/25/2008 |
Q: I currently use a double entry bookeeping system, which is quite new for me. My question is...I ...
A: First, there is no "right" or "wrong" way to record payments. It just depends on what one is trying ...
|
| payroll for 2 states | 11/18/2008 |
Q: I am starting to do the payroll for a Florida based LLC. There are currently 6 employees, 2 ...
A: What ever you choose to do regarding payroll taxes and workman's comp, please be confident of your ...
|
| moving average cost method | 10/29/2008 |
Q: How should I calculate average cost during purchase return or sales return Perpetual system Average ...
A: This is not the forum for homework questions, please do your homework. The answer is: search using ...
|
| a/r aging | 10/28/2008 |
Q: what is the correct way to age an account. is it from the date of service or the date of payment ...
A: An accounts receivable is incurred at the time of the sale. So normally the A/R would "begin" on ...
|
| How to calculate average cost during purchase return and sales return in Moving Average Cost Method. | 10/27/2008 |
Q: Moving Average Method Product A/c No 101 Supplier A/c No 201 Cash A/c No 102 Product Profit ...
A: Moving average cost means an inventory costing method under which an average unit cost is computed ...
|
| accounting | 10/22/2008 |
Q: The Ritz Manor is a popular seaside resort. A double room costs $220 for one night. In order to ...
A: This sounds like a homework problem. If so, please do your own homework. If that is not the case, ...
|
| Employee Bonus & Taxes -add'l | 10/17/2008 |
Q: My company is a non-profit senior community center. Our leadership team would like to pay one time ...
A: Payroll taxes are *not* an option, they are mandatory. An alternative, however, is to "gross-up" ...
|
| adjusting journal entry | 10/15/2008 |
Q: i am having trouble figuring out the amount to debit and credit to certain accounts. Victor hast two ...
A: Your scenario is vague, not clear. I presume your are asking about the salary expense at Dec. 31, ...
|
| Employer taxes for 1099 | 10/6/2008 |
Q: If I issue 1099 MISC to contractors , as an employer do I need to file 941, 940 and State ...
A: The payroll forms 941, 940, and the state equivalents are required for employees, not independent ...
|
| Financial Accounting | 9/28/2008 |
Q: Sir, I'm a student of MBA with major as Human Resource Management. The question I'm going to ask you ...
A: So, what question do you have?? I you do the research about this topic including all the topics ...
|
| Imputed income | 9/27/2008 |
Q: I recently began receiving my insurance benefits at work and was surprised to see around twice the ...
A: First, I am not sure a domestic partner can qualify as a dependent. I have not reviewed the relevant ...
|
| Receivables paid directly to suppliers | 9/26/2008 |
Q: If a receivable amount due from a customer to me is paid directly to one of my suppliers, what asset ...
A: Since no funds were received by you, nor paid out by you, there should be no entry to a ...
|
| single member payroll? | 9/23/2008 |
Q: I'm setting up a single member LLC in QuickBooks. I'm not sure how to expense out money like payroll ...
A: If the LLC is incorporated, then payments of wages to the owner/employee are just like wages paid to ...
|
| periodic inventory system | 9/8/2008 |
Q: Explain why a small business such as this might use the periodic inventory system.(mountain mabel's ...
A: Many businesses cannot track a specific individual inventory item, rather inventory is tracked by ...
|
| Single Entry vs Double Entry | 8/15/2008 |
Q: If I am going to use single entry accounting rather than double in my small business (service ...
A: A single entry accounting system is simply a means to track cash receipts and disbursements. Thus if ...
|
| Tax related | 8/12/2008 |
Q: An S corporation is paying back to the only shareholder what he loaned the corp. How does the loan ...
A: How does the loan repayment affect taxes? -- There is no effect on income taxes. Its just like any ...
|
| Defined benefit pension - monthly payment | 8/7/2008 |
Q: How do I know whether my company has correctly calculated my monthly pension payment?
A: You question is not clear. Are you asking how much the monthly payment into your pension, aka the ...
|
| simply Accounting Entries/Shareholder Loan | 8/5/2008 |
Q: A bookkeeping question using Simply accounting What does my journal entry look like for this ...
A: I do not use, and have not used, Simply Accounting. The answer which follows is a general answer for ...
|
| More acronyms: S, Sign, L/H | 7/22/2008 |
Q: it is Patricia again... I wonder if you can help me with other acronyms. They appear in the ...
A: I would agree that "L/H" probably means leasehold. "Sign" might mean simply a sign as advertisement ...
|
| Acronyms (CIP and FF) from a Chart of Account | 7/21/2008 |
Q: I'm translating a chart of accounts into Spanish and have a couple of acronyms unknown to me... CIP ...
A: CIP = abbreviation for construction in progress or construction in process. There are capital assets ...
|
| Payroll and balance sheets | 7/19/2008 |
Q: "How does payroll affect the balance sheet -- when the expense is incurred and paid in the same ...
A: If all payroll taxes are paid in the same period in which the payroll expenses are incurred, there ...
|
