Recent content by Counterofbeans

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    USA Allocating fixed costs

    I'm not in the publishing business, so I need a little help filling in the blanks where I don't understand.... Why does the units sold, either projected or actual, play a role in determining the cost per unit? It sounds like something where you will need a projected sales number, as actual...
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    USA Promissory Note JE

    You should impute interest then.
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    USA Promissory Note JE

    => Dr Cash Cr Loan from Lender (To record the cash receipts from the lender) Dr Operating expenses Cr Cash (To record the cash paid for operating expenses Dr Loan from Lender Cr Cash (To record the repayment of the loan from lender) The loan is...
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    Transportation cost on sales return

    Expense it under the name of any account you wish. Where to put the cost in terms of a reduction of sales or as a cost of sales is a company policy decision which should be disclosed in the Notes to the financials While you can try and craft an argument that it's an inventoriable cost...
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    USA Does Equity always equal A - L?

    Look back in the system to the JE that recorded such unrealized gain...A one-sided JE just doesn't make sense (or else that's a significant mistake) I'm thinking that you will find an account that isn't mapped to your financial statements/balance sheet. Like I said above, double check your...
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    UK Management Buy-Out

    What are the facts of the situation? "Management Buy Out" doesn't mean much... Cash is being paid/a loan is being assumed...for what exact reason? And is there anything that can adjust the cash flows?
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    USA Depreciation Question

    LOL, that's a mistake. That should be a separate line item on the SOCF
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    Recognizing AR billed for unearned revenue

    Record it in AR, or damn-near any other current asset account, all you want. As long as you have the corresponding credit to a liability account, in this case Unearned Revenue, there's no problem. You could get some angst if someone actually tries to reconcile AR and Revenue, as this would be...
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    USA Does Equity always equal A - L?

    Well, that's clearly your problem. I have no clue how you can record a one-sided JE, but once you resolve that, you'll have your answer
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    USA Accruing Expenses @ Year End

    It sounds like you are referring to a reversing JE. The whole point of a reversing JE is to simply put the expense into the correct period, but keep your AP department from not having to worry about cut-off at period end. Ideally, you want them to mechanically continue doing the same steps...
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    USA Depreciation Question

    Yes, it could be. I haven't had a nasty discontinued operations situation for over 10 years, but, if memory serves, any expense related to that operation gets collapsed into a single line item, including depr/amort expense. As such, you wouldn't see it, at first glance, just looking at the...
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    USA Equity:Opening Balances

    The question isn't whether A-L=E, the question here is who gave the company $500 and why? Or, did someone simply pull money out of a general account and go open a savings account?
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    USA Does Equity always equal A - L?

    To answer your question, overwhelmingly, the answer is yes, A-L=E. I'm guessing that you're simply missing an account that needs to be grouped to the balance sheet/income statement, as it would seem very strange to have a one-sided J/E. Review all accounts in your TB and make sure they are...
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    Write off of Goodwill

    Not trying to cause any problems, but I'd be very concerned about that. The controller (or whoever) recording JEs without any understanding about why they are recording it is ripe for issues. In my mind, you have a right to know why you are recording anything in the G/L.
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    Write off of Goodwill

    Question 1: Why are you writing it off then? How can management determine that it is impaired? Although, it sounds like the balance is wholly immaterial if it's "evaded" the auditors for years.