It won't show up on the balance sheet or income statement unless

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Oct 11, 2017
12:21:07pm

Huge Manatee All-American

It won't show up on the balance sheet or income statement unless

The date of the balance sheet is between the period of loan and payback

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Huge Manatee

Previous username: Bronoc
Bio page: Huge Manatee
Joined: Mar 14, 2011
Last login: Apr 29, 2024
Total posts: 51,682 (5,593 FO)

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Messages

Author

Time

Accounting question on a loan. A small business gives a $100K loan to a customer

Bro

10/11/17 12:18pm

It won't show up on the balance sheet or income statement unless

10/11/17 12:21pm

All transactions happened within the same month?

BlackBart

10/11/17 12:22pm

There are actually several loans and they are typically paid back within several

Bro

10/11/17 12:23pm

Any loans crossing over at a month-end should be on the balance sheet

BlackBart

10/11/17 12:32pm

Assuming the loan is paid back after month end, shouldn't it be shown as an

Bro

10/11/17 12:31pm

are you saying that the company continues to book it as income on the income statement even after the payoff and has an

HarlemCoug

10/11/17 12:24pm

Yes, I am concerned they are overstating their revenues. It looks like they book

Bro

10/11/17 12:28pm

Ask to have their operating accounts' bank statements. Compare revenue/cogs

BlackBart

10/11/17 12:35pm

RE: Yes, I am concerned they are overstating their revenues. It looks like they

Twturner5

10/11/17 12:35pm

I'm no CPA, but...

WaHooWaCoug

10/11/17 12:37pm

I think it will be difficult to find an accountant who thinks this is revenue. Because the revenues and COGS don't match

HarlemCoug

10/11/17 12:38pm

Thanks. I won't name names, but they used a CPA based in SLC for 2016 taxes.

Bro

10/11/17 12:44pm

you use the word "clearly" in your post. if it's clear what they were doing then that's less troubling.... not exactly

HarlemCoug

10/11/17 12:46pm

It's a balance sheet transaction only. No part of it should ever hit the P&L

BYU-Ite

10/11/17 12:31pm

RE: It's a balance sheet transaction only. No part of it should ever hit the

Twturner5

10/11/17 12:37pm

Thank you! This is the answer I was hoping for and I hope this is actually the

Bro

10/11/17 12:37pm

Ask for their billing register in Excel. In most outputs, you should be able to

BlackBart

10/11/17 12:41pm

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