Owner paid a subcontractor with his own money. How to make sure Vendor shows up on 1099 and still able to write the reimburse check to the Company Owner

First, you will need to create a new dummy bank account. You will also need a due to the owner as a liability type account to use it for later reimbursement.

Step#1 Use bank deposit form (create + sign > other > bank deposit) to record contributed amount by the owner to pay a contractor. Account to show as due to the owner liability type account. See screenshot below.

owner deposit
owner deposit

Step#2 Use Expense form (create + sign > vendor > expense) to create contractor expense posted to appropriate expense account. See screenshot below.

contractor expense
contractor expense

Step#3 Use Check form (create + sign > vendor > check) to write the reimburse check to the Company Owner. See screenshot below.

check to owner
check to owner

In case there is no need to reimburse the owner (step#1), you will use a capital contributed account which would be an Owner’s Equity type account.

Review of 1099 vendors and payments list. See screenshot below.

review 1099 vendors payments
review 1099 vendors payments

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#QuickBooks – How do you print bank register in QBO

This feature is available although it is still on QuickBooks Labs stage right now.

It is a part of the “New Registers” feature at the labs.
To go to “QuickBooks Labs” and turn this feature on:
From the home page screen

  • Click Company Gear (upper right corner)
  • Click “QuickBooks Labs” under Settings
  • Turn on “New Register”
  • Done

Click on the screenshots below to enlarge them

Go to “Bank Register”:
From the home page screen

  • Left navigation bar
  • Click Transactions > selection menu will expand
  • Click Chart of Accounts
  • Select bank account in question and click “View Register” under Action column

The print icon is in the far right corner of Bank Register screen:
Note: When we tested this on 7/6/2015, Balance column was not showing actual balance rather just n/a.

Click “Small Gear” next to print icon and select “show in one line” box, it will give more selections.

Here is a sample of printed bank register. There is no customization at this point.

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#QuickBooks Online


How to setup Liquor License purchase with Notes Payable in new QuickBooks Online?

Case: Amortizable asset being paid off with Notes Payable

I have an asset that needs to be amortized (a liquor license) and I’m confused about how to keep track of the payments we make on it in Quickbooks. The full price is $50K, we put $5K down, and make $750 payments each month (no interest) until it is paid off.

I’m not sure how to list this asset in Quickbooks, I know it’s supposed to be amortized straight-line over 15 years (Reg. 1.197-2(b)(8).

Step-by-step instruction:

You will need to set up ” Liquor License” as Intangible Assets (Or Other Assets in QBO), not as Fixed Assets.

Here is how to do it in new QuickBooks Online (QBO):

To setup new accounts in Chart of Accounts:

From the home page screen > Company Gear icon (upper right corner) > Settings > Chart of Accounts > New (blue button)

  • #1 Category Type = Other Assets > Detail Type = Licenses > Name and Description = Liquor License
  • #2 Category Type = Other Assets > Detail Type = Licenses > Name and Description = Cost > Check Sub Account checkbox = Liquor License
  • #3 Category Type = Other Assets > Detail Type = Accumulated Amortization of Other Assets > Name and Description = Accumulated Amortization of Liquor License > Check Sub Account checkbox = Liquor License
  • #4 Category Type = Expenses > Detail Type = Other Misc. Costs > Name and Description = Liquor License Amortization Expense
  • #5 Category Type = Long Term Liabilities > Detail Type = Notes Payable > Name and Description = Notes Payable to XYZ

How to record $5K down payment and also record $50K Liquor License as Other Assets and $45K as Notes Payable at the same time?

How was this $5K down payment made?

  • For Check = use Check form (Create + sign > Vendors “Check”)
  • For Online, Debit Card type = use Expense form (Create + sign > Vendors “Expense”)

You enter $5K down payment transactions as other use payment with the following Account splits under Account details heading:

  • Notes Payable to XYZ (refer to #5 above) = $5,000
  • Notes Payable to XYZ (refer to #5 above) = -$50,000 (negative amount)
  • Liquor License (Other Assets type, refer to #2 above) = $50,000

You will notice Check Amount is still $5,000.

For amortization of liquor license, you can setup monthly journal entry and make it recurring transactions type.

  • Debit > Liquor License Amortization Expense (refer to #4) = $277.78
  • Credit > Accumulated Amortization of Liquor License (refer to #3) = $277.78

When making $750 monthly payment, select Notes Payable to XYZ account (refer to #5 above).

Even after it’s fully amortized, cost and amortization should stay on the books until it’s sold again.