Income seems like such a straight-forward concept, and it's easy to think of all deposits as income.
But not all deposits are income
even though you are adding money to the business's checking, savings, or other financial account.
Example:
The company borrows money.
This could be from a bank or other lending institution, a cash advance on a credit card, or
the owner(s) personally loan the company money.
When the company borrows money, regardless of the source, it is not income.
A liability account should be set up because this money will be repaid at some point.
It may be a Current Liability (short-term) or a Long-term Liability (a year or greater).
It may be repaid on a regular schedule or as a lump sum payoff.
As the company pays down (or totally pays off) this loan,
the liability account (the amount the company owes) will decrease.
These payments do not have any impact on income or expenses.
It all happens in the asset and liability accounts.
Another example:
The company owns rental property(s).
Generally, when a property is rented to a new tenant, a security deposit is required.
This security deposit is not income.
It, too, is a liability for the company.
At some time in the future, when the tenant leaves,
some or all or none of the security deposit may be returned to the ex-tenant.
The liability account for the security deposit(s) would be reduced because
the company no longer owes the money to the ex-tenant.
When the tenant leaves and no security deposit is returned because of damages,
the liability account is still reduced in full (the original security amount)
and that amount will now be considered income.
Expenses will be incurred when the repairs are actually made.
The same is true for a partial refund of the security deposit;
the entire security deposit amount will be removed from the liability account.
Part of it will be returned to the ex-tenant (by writing a company check to the ex-tenant)
and the remainder will be treated as income.
Again, expenses will be incurred when the repairs are actually made.
Friday
2011.04.29 De-clutter, simplify and organize . . . the after . . .
. . . of the display shelves above the games and crafts cabinets.
Isn't all that empty space appealing?
I saved three empty frames, have at least a dozen to give away,
condensed some things in the library to make room for
the photo albums and scrapbooks.
I did a quick de-clutter and organize on the cabinets below.
One section was emptied (more for giving away)
and now the backpack and diaper bag have a convenient, but hidden home.
Also did a quick de-clutter of the hang bar in the entry closet
so that the "coat chair" is gone.
Just a week or so ago, Vince said "Do you actually NEED all those jackets?"
(Yeah, they were mostly mine.)
But, they are leaving now
so the kids' coats have hanger space and pegs available.
Again, convenient to use, but put out of sight.
There are several other areas
which have become "hot spots" on my de-cluttering radar.
Their turns will come.
A side-by-side comparison . . .
Did you notice the tables?
Theresa asked if we could switch the square one from the library
with the oval one originally here.
Theresa: Change is good.
I agree.
2011.04.29 De-clutter, simplify and organize . . .
. . . the display shelves above the games and crafts cabinets.
Now that I'm not working 6 days a week (tax season),
I'm ready for some spring cleaning and de-cluttering.
For me, the de-cluttering and organizing is much more enjoyable than the cleaning,
but cleaning a shelf is so easy when there is nothing on it :)
First step, mull it over in my mind and decide what's leaving.
Study the area for a couple of days to figure out the good and bad,
what's still functional, and what isn't.
Maybe the purpose of the area should be totally changed?
Am I just moving some things somewhere else?
Have things gotten old? boring? not needed?
Here's the before photo . . .
I've never been able to figure how areas become cluttered, but I know they do.
There is a very small storage room upstairs and I think stuff multiplies in the dark.
The top two shelves are mostly decorative and include the CD/radio.
The short third shelf has always been a challenge because it's only 5 1/2 inches high.
The table in front is an "extra" table for games, puzzles, craft projects,
and extra seating during family holidays and celebrations.
But, right now, it's mostly a catch-all for backpacks, diaper bags,
library make-and-take projects, and just stuff.
What I've decided so far ~ always subject to change ~
is to move all the photo albums and scrapbooks to the library
which will free up the cabinet top.
I love empty surfaces; they look so ready for projects and activities.
I also want to condense the display photos.
Condense means remove the photo(s) and file them in a photo box;
sell, pack, or give-away the frames.
Definitely keeping the decorative lamps and the CD/radio.
Problem: there isn't any "free" space in the library for the albums.
This will require a quick de-clutter of a shelf in the library.
The after photo will be posted soon (I hope).
2011.04.29 Doublefile viburnum . . .
. . . so named because the flowers are in pairs
and seem to be marching down each branch . . .
[ Happy birthday, jan :) ]
Thursday
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