Business Law

School of Legal Thought:

1. Natural - Moral ideal
2. Historical - Law comes from customs accepted by the population
3. Analytical - Laws that come from logical principles
4. Sociological - Public policy vs. individual needs
5. Realist - Laws come from desirable social needs

Doctrine of Star Decisis
  Stand by decisions in previous determined cases.  Decisions must be the same!

1. Elements
1. Court of competent jurisdiction
2. Decided a controversy
3. By a written opinion
4. set forth a principle of law that formed a basis for it's decision
1. "Here's what judge said then, I want you to say it now."
5. Principle of law will be followed in subsequent cases
1. "5 other cases this has happened."

Res Judicata (only parties in the same legal issues)
    Things have been decided. 

1. Elements
1. Parties are the same
2. Same legal issue
3. Final decision
4. Court of competent jurisdiction

Auditor's

Auditor's are:
  1. Independent
      Fact- Faithful, Tell the truth
      Appearance- If the auditor is the president of the company, he is not independent in appearance.
  2. Selective Testing
      Random
      Judgemental
  3. Material Misstatements
  4. Form Opinion
  5. F/S as a whole & Presentation

www.maxwoodburycpa.com

We started publishing our new website today!  Visit us at http://www.maxwoodburycpa.com/

It's an accrual world!

Accrual Accounting - Revenues are recognized when they are earned and expenses are recognized in the same period as thhhe related revenue (mathching or using a systematic and rational allocation or expensing in the period in which they expire), not necessarily in the period in which the cash is received or expended by the company.

Dave Ramsey

In Dave Ramsey's book, "Financial Peace Revisited," he guides married couples with this comment;
     "You will never prosper like you should unless both spouses are willing to ask and answer these 5 questions:
1. What is our monthly income?
2. How much a month do we need to spend on food, gas, or kids' clothes?
3. Where are the wills and insurance policies?
5. What is in our retirement plans?"

Hierarchy of Accounting Qualities

Users of Accounting Information           Decision Makers and Their
                                                            Characteristics
Pervasive Constraint                 B             Benefits > Costs
User-specific Qualities              U             Understandability
                                                D             Decision Usefulness
Primary Decision Specific Qualities
1. Relevance
2. Reliability
                 Ingredients of Primary Qualities =>Relevance
                    1. Timeliness
                    2. Predictive Value & Feedback Value
                 Ingredients of Primary Qualities =>Reliability
                    1. Verifiability
                    2. Neutrality
                    3. Representational & Faithfulness
Secondary and Interactive Qualities
  Relevance = Comparability
  Reliability = Consistency
                                                      Threshold for Recognition
                                                                Materiality

My Updated Resume

Max Woodbury

Objective: A summer internship with an accounting firm focusing on tax

Education: Franklin College, Franklin, IN
Major: Accounting
Anticipated Date of Graduation: December 2012

University of Indianapolis 05-06

Skills: Certified QuickBooks ProAdvisor, Tax return preparation, Compilation of financial statements, Fluent in American Sign Language Strong work ethic, Written and verbal communication, Teamwork

Experience:
Max S. Woodbury, CPA, Franklin, IN 6/10 - Present
Staff Accountant
• Compile financial statements
• Prepare individual, corporate and partnership tax returns
• Utilize QuickBooks accounting software
• Install QuickBooks on client computers and serve as a Certified QuickBooks ProAdvisor

Church of Jesus Christ of Latter Day Saints 7/08 – 10/10
Financial Clerk
• Counted Sunday offerings
• Made weekly deposits at the local bank
• Write checks to cover church expenses
• Sat through audits twice yearly to comply with church financial policies

Dick Pierce Kicking Services, Columbus, OH Summers 08-10
Camp Instructor and Counselor
• Taught high school age kids how to kick a football


Activities and Awards

 Boy Scouts
• Eagle Scout: Raised approximately $10,000 and supervised and built an ADA compliant handicap ramp for the Indian Creek H.S. football stadium
• National Boy Scout of the year award – 2005
 Franklin College Football: starting varsity punter (ranked 27th nationally- ncaafootball.com)
 Franklin College Accounting Club

Analyzing Your Stock Activity

1. List your investments in order of their previous performance since your previous evaluation period:
1. HL  $7.12 $7.59 Increase of 6.60%
2. SLV $40.19 $42.61 Increase of 6.02%
3. CSCO $15.70 $15.06 Decrease of 4.08%
4. And So on.....
5. This way you can easily recognize your winners and losers
2. Determine your potential Gain or potential Loss (don't buy a stock with a potential loss 90% and potential gain of 10%).
1. Suggestion:
1. write down the price at what you expect to sell if you have a loss (4% or less below your purchase price
2. write down the price at what you expect to sell if you have a gain (10% or more from your purchase price OR maybe when your stock's P/E ratio increases 100%)
3. Nathan Rothschild said, "....I never buy at the bottom, and I always sell too soon."

Franklin College Accounting Club

It's an accrual world!

Itemized Deductions!

1. Medical Expeneses = 7.5% of AGI can be itemized
2. State and Local Taxes Paid can be itemized
3. Mortgage Interest Expense up to 2 homes
4. Investment Interest up to the amount income reported from investments
5. Charitable Contributions up to 50% of AGI can be itemized
6. Casualty and Theft Losses up to 10% of AGI and $100 per event
7. Gambling Losses up to gambling winnings can be itemized

Puzzle

Accounting is like a puzzle without the assurance that all the pieces are included in the box.  I love to do puzzles.  I love to do accounting more.  Following the puzzle's completion, the puzzler views the beautiful picture with satisfaction.  The accountants picture looks black and white with numbers but it tells a story.  An American's hard work, their sweat, their sacrifices, their love, and their fight for success.  I can't frame that kind of puzzle and view it every day. The accounting picture changes the second I complete the puzzle. 

New Laws Affect Tax

1. The Affordable Care Act
2. The American Recovery and Reinvestment Act of 2009 (ARRA)
3. Hiring Incentives to Restore Employment (HIRE)
4. Small Business Jobs Act of 2010 Tax Provisions

Becker Campus Ambassador!

I may become the Franklin College Becker Campus Ambassador!  I am very excited.  It will be a great experience for me to help my fellow accounting colleagues.  Becker "...has helped nearly half a million accounting, finance and project management professionals advance their careers and achieve success."  This is from Becker's website.  Becker is probably most known for their classes on passing the CPA exam.  "14 of the 15 highest scorers for the 2009 CPA exam prepared with Becker..."

Johnson County Development Corporation

JCDC Annouces Details for Annual Golf Outing - Event Date 09/27/2011 2011:08:11
This event is JCDC's premier annual golf outing. Attendees spend the day networking, building relationships, and having a great time while supporting and celebrating JCDC's continuous efforts in helping build a stronger marketplace within the county.

If you are interested in finding out more details on this event, please contact Nikki Walker at nvwalker@jcdc.org or 317.736.4300.
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Selling Your Home?

10 Tax Tips from the IRS:

1. In Genreal, you are eligible to exclude the gain from the income if you have owned and used your home as your main home for 2 years out of the 5 years prior to the date of its sale.
2. If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).
3. You are not eligible for the exclusion if you excluded the gain from the sale of another home during the 2 year period prior to the sale of the home.
4. If you can exclude all of the gain, you do not need to report the sale on the tax return.
5. If you have a sale that is not exludible, you must report the sale on the tax return.  You must report it on Form 1040 or Schedule D.
6. You cannot deduct a loss from the sale of your main home.
7. Publication 523 "Selling Your Home" will help you figure the adjusted basis of the home you sold, the gain or loss on the sale, and the gain you can exclude.
8. If you have more than 1 home, you can only exlcude the sale of your main home.  You must pay tax on any other home you sell for a gain.  If you have two homes and you live in both of them, then the home you live in most is your main home.
9. If you recieved the 1st time homebuyer credit and within 36 months of the date of purchase, the property is no longer used as the principal residence, you are required to repay the credit.  Repayment of the 1st time homebuyer credit is due with the income tax return for the year the home ceased to be your principal residence, using Form 5405, First Time Homebuyer Credit and Repayment of the Credit.  The full amount of the credit is reflected as additional tax on that year's tax return.
10. When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you recieve correspondance from the IRS.  Use Form 8822, Change of Address, to notify the IRS on changing your address.

IRS

The IRS has millions of dollars that are returned each year as undeliverable.  Did you have a refund but did not get your check?

1. You may have moved before the IRS could send you your check.  "Where's My Refund" at IRS.gov.

AUGUST 2011

We will be putting in a lot of work hours in August at Woodbury Square.  Hope to see you there with any accounting questions you may have!

Accountants

I am not a good accountant unless I pay little to no taxes every year and I do it ethically.  Meaning I am a good accountant when I know where and how to use deductions and credits on my tax return.  Also, the steps on how to live life by achieving these deductions and credits throughout the year.  Taxes is a way of life!  It can and should be a good way of life as well.