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Oct 11, 2017
12:32
:15
pm
BlackBart
All-American
Any loans crossing over at a month-end should be on the balance sheet
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BlackBart
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LVCoug
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BlackBart
Joined
Oct 3, 2004
Last login
Apr 29, 2024
Total posts
33,555 (299 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
Huge Manatee
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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