The Bookeeper has a 5 figure amt (rounded off) listed as "Cost of Goods Sold" on the P&L but does not itemize this amt but adds this 5 figure amt to the "Job Costs", "Job Materials" and Tools & Machinery Purchases". Is that normal? Where do I enter this?
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General Ledger for S Corporation
The figure the bookkeeper provided may contain items to depreciate or apply a section 179. Ask for a print out of the general ledger and do a trial balance.S Corporations are tricky. The profit on page one Form 1102S is not always what it seems to be. What kind of software do you use? -
I use ProSeries and I have another question...
I did a Balance sheet dated 1/1/07 and under Assets the bookeeper has $20K inventory. On balance sheet dated 12/31/07 the bookeeper has a - $8185 as "other Job Cost" for which that amt flows to Sch L line 3b due to the fact I entered that amt on Sch A Ln 1 (beginning year inventory) and produced the same to COGS amt on the 12/31/07 balance sheet produced. Why is the 1/1/07 Inventory asset amt different from the 12/31/07 beginning year inventory amt? Shouldn't those amts be identical?Comment
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Jan inventory vs Dec Inventory
Unless you made a typographical error, you are asking why an inventory changed over 12 months from Jan to Dec of the same year. The Jan 1 2007 inventory should be the same as the Dec 31, 2006 inventory, but is not likely to remain unchanged between Jan and Dec of the same year.Comment
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My Original question probably confusing
First of all should the 12/31/07 P&L have a "beginning inventory" amt and if so should that beginning inventory amt be the same as the "inventory asset" on the 1/1/07 balance sheet? As mentioned in my above quote, the bookeeper has NO listing for "beginning inventory" on the 12/31/07 P&L instead a listing "Jobs Costs-other" that when entered in form 1120s Sch A Ln 1 (beginning inventory), produces the same "total COGS" amt as the 12/31/07 P&L displays and Sch A Ln 1 flows to Sch L line 3b (inventories) so in order for my "beginning of tax year" columns in Sch L to balance, I had to "override minus $8185 (COGS inventory at the beginning of year Sch A Ln 1) on Sch L line 3b and enter $20K. Will I be ok?Comment
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Let's review..
COGS calculation. The basic formula is Beg Inv + Purchases - Ending Inv = COGS
You are confusing COGS with Purchases. If you do a little algebraic manipulation of the above formula you end up with Purchases = COGS - Beg Inv +Ending Inv
Bingo: there is your minus Beg Inv.
Side note: I'd echo the comments that the tax preparer gives the depreciation adjustment back. It the company is using tax basis statements, you need to advise them on the many choices such as 179, bonus depreciation, and ADS. Aside from the fact bookkeepers don't know the entire tax picture, it's tricky to get these occasional entries right.Comment
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Let's review..
COGS calculation. The basic formula is Beg Inv + Purchases - Ending Inv = COGS
You are confusing COGS with Purchases. If you do a little algebraic manipulation of the above formula you end up with Purchases = COGS - Beg Inv +Ending Inv
Bingo: there is your minus Beg Inv.Comment
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