Level 15

Reports and accounting

@RedSoxCyr wrote:

New business owner and trying to figure out how to account for some details


Complimentary coffee (machine and materials) for customers and staff


I would just ignore it, but if you want to do things correctly

post the fair market value of the machine to other income or donation income

then buy the machine for that same amount


also - we bought a business and they had no idea how much was outstanding for gift cards -  we accepted up to $500 in debt for this (the rest will be subtracted at closing) 
As these come in - - do they go under a goodwill category  - -or some form of debt?


A gift card you owe is a debt and should be posted to a gift card liability account



Thanks for your help