Journal entries: Recording the trade-in of an asset

July 28, 2009

In 2006, your firm purchased a copier for $20,000. To date, depreciation expense of $12,000 has been taken. In 2009, your firm trades in the copier for a new one costing $25,000. The trade-in allowance is $3,000. What is the journal entry to record the trade-in? Copier (new)                                Debit [...]

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6 early signals of customer payment problems —what to do

July 20, 2009

Here are some useful tips to cut your company’s losses in the recession. Although the downturn has changed normal payment patterns, when you see any of these signs, management would be well advised to act before it’s too late. 1. Loss of contact. Defined as two broken promises to pay. Accept one promise. The second time, [...]

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Make sure your company or client Is properly insured

July 14, 2009

Is your company or client properly covered? Most owners think they are “insured.” But it is coverage a firm does not have that can put it out of business. Check this list from Gaebler Ventures, a venture capital firm: Exposure Coverage Tools and equipment (used off-premises) Contractors’ equipment floater Stock (inventory) Usually insured as part of [...]

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PCI Compliance: Frequently Asked Questions

June 14, 2009

Payment card industry compliance is confusing for many ecommerce merchants. But it potentially affects every merchant that accepts credit card payments. Failure to understand the PCI compliance standards could result in higher merchant account fees and fines from the credit card issuers. Merchants oftentimes have similar general questions on PCI compliance. We posed some of [...]

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Beware of IRS’ 2009 “Dirty Dozen” Tax Scams

June 3, 2009

The Internal Revenue Service today issued its 2009 “dirty dozen” list of tax scams, including schemes involving phishing, hiding income offshore and false claims for refunds. “Taxpayers should be wary of scams to avoid paying taxes that seem too good to be true, especially during these challenging economic times,” IRS Commissioner Doug Shulman said. “There [...]

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Energy-Saving Steps This Year May Result in Tax Savings Next Year

May 24, 2009

The Internal Revenue Service today reminded individual and business taxpayers that many energy-saving steps taken this year may result in bigger tax savings next year. The recently enacted American Recovery and Reinvestment (ARRA) of 2009 contained a number of either new or expanded tax benefits on expenditures to reduce energy use or create new energy [...]

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Start setting aside state sales tax for Web sales in any state

May 23, 2009

The Supreme Court has backed state sales tax on Internet sales. New Mexico had imposed its gross receipts tax on Dell Computer’s Internet sales in the state, even though Dell had no physical presence in the state other than a third-party service tech under contract. State courts found for the state, and the Supreme Court [...]

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Be A Social Security Expert

March 27, 2009

The next time an employee or owner asks you about Social Security benefits, you can provdie all the answers, with total confidence.  Here they are: For retirees born in 1941, full retirement age is 65 and 8 months; in 1942, 65 and 10 months, gradually increasing to 67 for those born in 1960 and later. [...]

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Five Tips to Avoid Tax Time Stress

March 20, 2009

Are you looking for ways to avoid the last-minute rush for doing your taxes? Here are some stress-relieving tips to help you. 1.     Don’t Procrastinate – Resist the temptation to put off your taxes until the very last minute. Your haste to meet the filing deadline may cause you to overlook potential sources of tax [...]

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I can’t make my IRS tax payment, what do I do?

March 13, 2009

IRS has flexibility if you can’t make tax payments due to financial woes.  Call the phone numbers in the IRS correspondence you receive. The IRS can: Postpone collection actions; Be flexible about missed or reduced installment-agreement payments; Re-value real estate by negotiating an Offer in Compromise (OIC); Offer ways to avoid default on an OIC; [...]

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