Financial Accounting

Partnership Comp Prob Introduction-10 Accounting Comprehensive Problem worksheet

Written by Bob Steele CPA - Accounting Instruction, Help & How To on . Leave a comment

Partnership comprehensive accounting problem will be a problem that covers the accounting cycle for the first month of operations for a partnership. This presentation will introduce the pre formatted worksheet we ill be using. If you would to work the problem in Excel along with this video we will have a course available soon that will provide the reformatted worksheets. We will enter transaction to start a new partnership, enter the accounting journal entries in the general journal, post them to the general ledger, create the trail balance from the general ledger, enter adjusting journal entries, create financial statements, and enter closing entries. for more accounting information see website. http://accountinginstruction.info/cou…

 

Financial Accounting

Federal Unemployment Tax Act Calculation (FUTA)-Payroll Tax Calculations FUTA

Written by Bob Steele CPA - Accounting Instruction, Help & How To on . Leave a comment

Federal unemployment tax or FUTA is a payroll tax that is paid by the employer only. In other words the payroll tax is based on employee wages but is not withheld from employee pay but taken form the employer. Employer only payroll taxes are often less understood because most people have less experience with them as employees. FUTA payroll tax can also be confusing because it has a low cap of $7,000 at this time. In other words the employer pays FUTA tax on the first $7,000 of each employee earning and then stops paying FUTA after the employee has reached the 7,000 cap. The other confusing thing about FUTA is that the rate is tied to Statue Unemployment Tax or SUTA. In other words, the FUTA tax rate is less if the state has SUTA that the employer must pay. Just about every state does have SUTS so companies generally pay the lower FUTA rate. The FUTA tax is a kind of flat tax, or even rate up to the 7,000 cap. For more accounting information see website. http://accountinginstruction.info/cou…

 

 

Financial Accounting

Corporation Comp Prob Introduction – Accounting Transaction 10

Written by Bob Steele CPA - Accounting Instruction, Help & How To on . Leave a comment

Corporate comprehensive accounting problem will be a problem that covers the accounting cycle for the first month of operations for a corporation. This presentation will introduce the pre formatted worksheet we ill be using. If you would to work the problem in Excel along with this video we will have a course available soon that will provide the reformatted worksheets. We will enter transaction to start a new corporation, enter the accounting journal entries in the general journal, post them to the general ledger, create the trail balance from the general ledger, enter adjusting journal entries, create financial statements, and enter closing entries. for more accounting information see website. http://accountinginstruction.info/cou…

 

Financial Accounting

Partnership Closing Process – Closing Process for Partnership In Excel

Written by Bob Steele CPA - Accounting Instruction, Help & How To on . Leave a comment

The accounting closing process for a partnership is much the same as the accounting closing process for other entities like a sole proprietorship or corporation except that the last to steps will involve different accounts, different equity accounts. The goal off the closing process is to close out temporary accounts including income statement accounts of revenue and expense accounts and draws. The closing out of temporary accounts prepares the trial balance for the next time period the next month or year. We will have a four step closing process. The first step will close revenue to an income summary account. The second step will close expenses to and income summary account. The third step will close the income summary account, how having an amount equal to net income, to the related capital accounts according to their profit sharing agreement. The fourth and final step will close out draws to the related capital accounts. For more accounting information see website. http://accountinginstruction.info/cou…

 

 

Financial Accounting

Issuing Stock for Cash – How to record the journal entry for the issuing of common stock for cash

Written by Bob Steele CPA - Accounting Instruction, Help & How To on . Leave a comment

Issuing common stock is how a corporation can generate capital, generate money, for use in the company. Issuing common stock provides stockholders with an equity interest in the company. Mot stock sales we think of on a stock exchange are trades between investors instead of stock issued from the company. We recording stock issued from the company we the company will receive cash from investors. The journal entry related to issuing stock for cash will include a debit to cash. The debit will be calculated as the amount of stock issued times the market price. We will issue stock for as much as we can, the market price. We will credit common stock, increasing equity, but not for the same amount as cash received if there is a par value. We will credit common stock for the amount of stock issued times the par value. The difference between the cash and common stock will be credited to additional paid in capital. For more accounting information see website. http://accountinginstruction.info/cou…

 

 

Financial Accounting

Cash Dividends – How to record a cash dividend – Journal entry for cash dividend

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Cash dividends are similar to draws for a sole proprietorship or partnership except with some exceptions. Unlike dividends draws can differ from partner to partner and each partner has control over the amount they with to draw. Dividends still represent money going from the business to the owners, in this case the owners being stockholders. The dividends must be uniform, however. There must be an equal amount of dividend distributed to each stock. The process of recording a dividend is longer as well. We first need to declare a dividend. At the date of declaration we will enter the journal entry decreasing retained earning or increasing dividends in the equity section and increasing a liability account to represent the cash owed to the stockholders. We will then pay the stockholders at a later date, decreasing cash with a credit and decreasing the payable account.
For more accounting information see website.

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Financial Accounting

Partnerships Liquidation Partner Does Not Pays Partnershi

Written by Bob Steele CPA - Accounting Instruction, Help & How To on . Leave a comment

Partnership liquidation will go through the closing process of a partnership. We will work the partnership closing process in Excel. Partnership liquidation needs to happen in specific step, a liquidating order, to avoid problem. The first step in the partnership liquidation is to sell the assets and recognize any gain or loss on the sale. If this steps results in a partner capital account being less then zero, or flipping from a credit balance to a debit balance, we need to see if we can collect money from the partner with a negative balance. If the partner will not pay we will need to allocate the negative capital account to the remaining partners to continue. Then we can pay off liabilities. Once we are left with only cash and capital we can pay off the partners.
For more accounting information see website.

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Financial Accounting

Partnership-New Partner Added Easy Question

Written by Bob Steele CPA - Accounting Instruction, Help & How To on . Leave a comment

Adding a new partner to an existing partnership can be a more difficult process then providing a new equity interest in a corporation. One reason is the at the partnership less standardized in term of stock verses capital accounts. The partnership is also not a separate legal entity so any significant change in ownership can cause the partnership to terminate and then reestablish.
For more accounting information see website.

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