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Archive for the ‘Tax Adjustments’ Category

Jesse Jackson confronted on Obama Hypocrisy & Carbon Tax

Question: I need URGENT help with Accounting…..PLEASE. Jouranl Entries and Trial Balance?

Oct. 1 Began business by making a deposit in a company bank account of $12,000, in exchange
for 1,200 shares of $10 par value common stock.

Oct. 1 Paid the premium on a one-year insurance policy, $1,200.

Oct. 1 Paid the current month’s rent, $1,040.

Oct. 3 Purchased repair equipment from Conklin Company, $4,400. The terms were $600 down and $200
per month for nineteen months. The first payment is due November 1.

Oct. 8 Purchased repair supplies from McKenna Company on credit, $390.

Oct. 12 Paid utility bill for October, $154.

Oct. 16 Cash bicycle repair revenue for the first half of October, $1,362.

Oct. 19 Made payment to McKenna Company, $200.

Adjusting entries:
a)1 mos insurance expired. b)Remaining inventory of repair supplies is $194 c)Estimated depreciation on repair equipment is $70 d)Estimated income taxes are $40

Answer: Oct 1
Cash $12,000 Dr
..Common Stock 12,000 Cr
….1,200 shares sold at $10 par value

Prepaid Insurance 1,200 Dr
..Cash1,200 Cr
….Premium payment for insurance coverage for the year

Rent Expense 1,040 Dr
..Cash Cr 1,040
….Rent for October

… etc.; remember that anything that DECREASES is a credit (CR) and anything that INCREASES is a debit (DR). So if you add cash, it’s a debit, and if you take away cash, it’s a credit. If you add to your expenses, it’s a debit. If you decrease the amount of an asset, it’s a credit.

Adjusting entries, Oct 31:
Insurance Expense 100 Dr
..Prepaid Insurance 100 Cr
….1 month insurance coverage

Here, you have an asset – something that you have paid for and is owed to your company (in this case, insurance coverage) which you are using up. The adjusting entry shows that you’ve ‘used’ one twelfth of your prepaid expense ($1200/12 = $100), so now it stops being an asset (something owed) and becomes an expense.

Property for Industry posts steady 1Q profit

April 19 (BusinessWire) – Property for Industry, which has a portfolio of 55 industrial properties, reported little-changed first-half profit as rentals rose and the company took one-time adjustments for a drop in the value of interest rate swaps.

An entrepreneur’s business plan is generally created to be reviewed by external funders. However, this should not be the first time that the plan is given a detailed review by a professional. Consultants and specialists are widely available and can offer valuable feedback which can save you from making embarrassing mistakes in full view of funders.

Specialists

Lawyers, accountants, and financial advisors can offer specific feedback on your business plan, as it pertains to their area of expertise. Make sure you seek specialists with experience working with startup businesses if you take this route. The upside of working with specialists to review the legal, financial, and tax aspects of your business plan is that they should have deep expertise on their topic. The downside is that you will need to speak to multiple specialists to cover all the bases and you will not have the benefit of one consultant who can give you an overall review of the strength of your current plan.

SCORE and SBDCs

SCORE (the Service Corps of Retired Executives) and SBDCs (Small Business Development Centers) are non-profit coaching and consultation services offering free services to entrepreneurs and small business owners. Both can give some initial advice and mentorship, but will not be able to devote a great deal of time to your plan as their mission is to offer basic consultations to many separate clients.

Business Plan Consultants

A business plan consultant can offer that overall review. This type of consultant specializes in creating business plans and helping entrepreneurs to develop their own. They have a very good idea of what funders want to see, and a general sense of the legal, tax, and financial issues that lawyers and accountants look at. A business plan consultant can offer an initial review and then refer you to a specialist with specific questions that are beyond their expertise. This can get you the best of both worlds in a sense – general advice on your strategy as well as deep expertise when you need it.

Senate-passed health reform bill faces tough negotiations with House

Physician organizations will be pushing for more changes in an effort to minimize future Medicare pay cuts.

Section 3: Michael Chen – College Financial Aid and College Tax Specialist

Question: What is the annual income I should write on the form I-864, Total income or adjusted gross income?

I’m self employed, and, in my tax return my total income is enough to be a sponsor, but after “self employed taxes”, my adjusted gross income falls a little behind the line. They ask to write my adjusted gross income for the last three yeas, I understand that, but I don’t know what to write on line 23 where they ask my “individual annual income”. Any help?
Thanks
Ok, just to be sure, so it’s not adjusted gross income?

Answer: Self-employment taxes are not a reduction from gross income to arrive at AGI. The instructions tell you to show your total earned income or retirement income for the year. That’s what you put down — total earned income, etc. Earned income is income from wages or self-employment. It does not include unearned income such as dividends, interest, capital gains, etc. Total income is always before any taxes, since eveyone’s tax situation is unique.

Table 1. All returns: sources of income, adjustments, deductions, and exemptions, by size of adjusted gross income, tax year 2006.(Individual Income Tax … from: Statistics of Income. SOI Bulletin $9.95 This digital document is an article from Statistics of Income. SOI Bulletin, published by U.S. Government Printing Office on September 22, 2008. The length of the article is 18590 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Tab…

Tax-adjusted market risk premiums in New Zealand: 1931-2002 [An article from: Pacific-Basin Finance Journal] $8.95 This digital document is a journal article from Pacific-Basin Finance Journal, published by Elsevier in 2004. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.Description: This paper documents historical returns to equities and long-term government bonds, bond yields and inflation rates in New…

Table 5.–Personal income and total adjusted gross income based on individual income tax returns per National Income and Product Accounts (NIPA), tax years … from: Statistics of Income. SOI Bulletin $5.95 This digital document is an article from Statistics of Income. SOI Bulletin, published by U.S. Government Printing Office on September 22, 2004. The length of the article is 823 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web br…

Analyzing Measure 66

Even though fewer than 3 percent of Oregon taxpayers would have to pay more, every Oregon voter will have the chance in a Jan. 26 statewide election to decide the fate of Measure 66.

What’s My Adjusted Gross Income (AGI) – E-File Explained

Question: The Bush tax rebate will be $800 for singles making under 85k.Is this based on gross adjusted income?

Answer: Nothing has been signed. There is no rebate. It’s all talk from a president famous for his cheap words. Remember his “end of major conflict in Iraq” speech?! How many have died since then?

The last time he pulled this stunt it was an advance refund on the 2001 tax returns. Many folks had to pay it back when they filed their tax returns!

If you do get something, put it in the bank and let it sit until you file your 2008 return in 2009. You may need it then if your refund is less than the advance refund you received

J.K. Lasser’s 1001 Deductions and Tax Breaks 2010: Your Complete Guide to Everything Deductible $11.05 A straightforward guide to taking tax breaks and deductions Completely revised to reflect important changes in this year’s tax laws, J.K. Lasser’s 1001 Deductions & Tax Breaks 2010 will help you take advantage of every tax break and deduction you may be entitled to. This comprehensive guide is clearly organized by subject matter so you can easily find situations that may apply to you…

J.K. Lasser’s 1001 Deductions and Tax Breaks 2011: Your Complete Guide to Everything Deductible $13.46 A straightforward guide to taking tax breaks and deductions Completely revised to reflect important changes in this year’s tax laws, J.K. Lasser’s 1001 Deductions & Tax Breaks 2011 will help you take advantage of every tax break and deduction you may be entitled to. This comprehensive guide is clearly organized by subject matter so you can easily find situations that may apply to you. Each…

Distribution of Virginia adjusted gross income by income class, 1975 …

Income limit lifted, opening Roth IRA conversions to all

Hillsborough resident Rick Smith likes the idea of converting a traditional Individual Retirement Account into a tax-free Roth IRA, but until this year, he and other higher-income taxpayers did not have that option. Now they do, thanks to a change in the tax code.

How to Complete and File a 1040A Tax Form : 1040A Adjusted Gross Income Tips