Category Archives: Check

In setting up my new QuickBooks file, how do I enter the existing bank account balance with outstanding uncleared checks

It really depends upon how they were reported in previous year’s Financial Statement Report.

Let’s take examples and assume the ending bank balance per the bank statement is $11,000. There is also one check you wrote for $10,000 has not cleared the bank yet. In your books, the actual bank balance should be $1,000, right?

Example #1: You have already reported $10,000 as an expense in the previous year’s financial statement.

Since you have already reported, you do not want to expense it again in the current year. You would post $10,000 check as “Prior year” activity, with a prior date. This way, you can put the bank statement’s ending balance and have the uncleared check as outstanding, for the purpose of bank reconciliation.

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Example #2: You have not reported $10,000 as an expense in the previous year’s financial statement.

This becomes your current year financial activity when the check has cashed the bank. If you are downloading banking transactions, you would expense it when the bank posted the transaction. In setting up QuickBooks file, the bank balance is $11,000, the same as the bank statement balance.

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2015 Laser 1099-MISC Income, Federal Copy A, Bulk

2015 Laser 1099-MISC Income, Federal Copy A, Bulk

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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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2015 Laser 1099-MISC Income, Federal Copy A, Bulk

2015 Laser 1099-MISC Income, Federal Copy A, Bulk


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#QuickBooks #QBO What is the maximum digits you can use for a check number

A check number can be of up to 21 digits.

To sign up QuickBooks for a free trial from US Canada UK and Australia, bookmark this URL link > www.newqbo.net/sign/

check number digits

 

Weekly Price Check US CA UK AU (Plus Plan)

USACanadaUKAustralia
us120x90ca120x90uk120x90au120x90
USD 23.97 per monthCAD 14.50 per monthGBP 15.00 per monthAUD 21.00 per month
USD 23.97 per monthUSD 12.01 per month
(Conversion)
USD 23.30 per month
(Conversion)
USD 16.60 per month
(Conversion)
LOWEST PRICE!

 

#QuickBooks Online

 

#QuickBooks – How do I enter and print reference information on voucher checks?

In QuickBooks Online, there is no feature setup to print reference number (or vendor bill number) on voucher checks. Reference number comes directly from entered bill number field.

 

Here is a sample of Voucher Check printout:
Click on the screenshot below to enlarge it
voucher check

  • Reference column = entered vendor invoice number on “bill no.” field
  • Original amount = vendor invoice amount
  • Printer setup selection = voucher (not standard)

Weekly Price Check US CA UK AU (Plus Plan)

USACanadaUKAustralia
us120x90ca120x90uk120x90au120x90
USD 23.97 per monthCAD 14.50 per monthGBP 15.00 per monthAUD 21.00 per month
USD 23.97 per monthUSD 12.01 per month
(Conversion)
USD 23.30 per month
(Conversion)
USD 16.60 per month
(Conversion)
LOWEST PRICE!

 

#QuickBooks Online

 

How to set it up and enter bank Line of Credit (LOC) transactions in new QuickBooks Online?

To track a line of credit (LOC) extended to your business, create a liability account with an opening balance of zero in your Chart of Accounts.

Chart of Accounts
Chart of Accounts

From the Home page screen

  • Go to the Company Gear (right upper-corner)
  • Select Chart of Accounts under Settings header
  • Select blue “New” button (right corner)
  • New “Account” information screen will open
  • Category Type = Other Current Liabilities
  • Detail = Line of Credit
  • Name = Line of Credit (or Chase Line of Credit if preferred to name the bank)
  • Description Line of Credit (or same as name)
  • Balance = Leave opening balance as “0” (zero even if you’ve already used LOC and has balance. It’s better to enter transaction later.)
  • Click “Save” button
Add new LOC account
Add new LOC account

To record (for example $100,000.00) the LOC extended to your company and deposited to main Checking account:

Bank Deposit
Bank Deposit

From the Home page screen

  • Go to Create “+” sign (top middle)
  • Deposits under Other header
  • Ensure the proper Deposit to account is selected (in this example, Chase Checking Account)
  • Date = Enter bank posted date
  • Go “Add New Deposits” section
  • Received From = Chase LOC Payment (Add New as Vendor if needed)
  • Account = Line of Credit (Select the “Line of Credit” account just created as “Other Current Liabilities) from the Account drop-down arrow)
  • Description = For example, Chase line of credit deposited to Chase Checking Account
  • Payment Method = Bank Online or appropriate (add new if needed)
  • Ref Number = Enter last four digits of LOC number (optional)
  • Amount = $100,000.00
  • Attachments (paper clip icon) = Upload picture of related document (if available)
  • Click “Save and New or Save and Close” blue button

This entry will show you have added $100,000 as deposit to Chase Checking Account and $100,000 as liability to Chase LOC account.

loc deposit
loc deposit

To record just interest charges (in this example $500 interest charges) applied to the LOC by your financial institution:
See instructions below for making Principal and Interest Payment.
From the Home page screen

  • Select blue navigation bar on the left
  • Select Transactions
  • Select Registers
  • Locate Line of Credit Account register
  • Double click Line of Credit Account
  • Liability for Line of Credit screen will open
  • Enter the date of the interest charge (for example 4/30/2014)
  • Financial institution name where the line of credit is held as the Payee (in this example Chase LOC Payment)
  • Enter the interest charge in the Increase column (in this example $500.00)
  • Choose Interest Expense account from the “Account” drop-down arrow
  • Enter “Memo” as Interest Expense for the period (in this example for April, 2014)
  • Click Save
Record Interest Expense
Record Interest Expense

To record a repayment of the LOC and/or payment of interest charges:
(In this example making $5,000 LOC payment from Chase Checking Account ($4,500 principal and $500 interest)

From the Home page screen

  • Select Create “+” sign
  • Select “Expense” (if paid Online) or Select “Check” (if issued Check) under Vendors header. In this example, we are making online payment.
  • Click the LOC Account as Payee from drop-down arrow (“Chase LOC Payment” in this example)
  • Choose the bank account you want to make payment from (“Chase Checking Account” in this example)
  • Expense Date: = Payment Date (for example 4/30/2104)
  • Payment Method: = Bank Online
  • Under Account Details, click the drop-down arrow and choose the “Line of Credit” account (Other Current Liabilities type),
    Under Description = Principal Payment
    Under Amount = $4,500.00
  • On the second line, Under Account Details, click the drop-down arrow and choose the “Interest Expense” account (Expenses type),
    Under Description = Interest Payment
    Under Amount = $500.00
  • Make sure total payment is $5,000.00
  • Attachments (small paper clip icon, bottom left): Upload photo of LOC statement. Optional but recommended.
  • Click Save and New or Save and Close button
LOC payment
LOC payment

To enter a payment that has been made directly from the LOC to a vendor, where no bills have been entered:
In this example, we are making $10,000 payment to Simon Manufacturing for purchased materials.
From the Home page screen

  • Select blue navigation bar on the left
  • Select Transactions
  • Select Registers
  • Locate Line of Credit Account register
  • Double click Line of Credit Account
  • Liability for Line of Credit screen will open
  • Enter the date of the purchase (for example 4/30/2014)
  • Name of Vendor Payee (in this example Simon Manufacturing)
  • Enter the amount in the Increase column (in this example $10,00.00)
  • Choose Purchases Expense Account from the “Account” drop-down arrow
  • Enter “Memo” as Buying Materials (for example XYZ job)
  • Click Save

NOTE: This transaction will not show up on Vendors Center record. For to show transaction recorded on Vendors Center, see three-steps process below.

LOC purchases
LOC purchases

To pay bills where funds have gone directly from the line of credit to the Vendor Entered Bill as Accounts Payable:
This involves three steps process.

Step # 1 Enter Vendor Bill

Enter Vendor Bill
Enter Vendor Bill

From the Home page screen

  • Select Create “+” sign
  • Select “Bill” under Vendors header
  • Select Vendor = Simon Manufacturing
  • Date = 4/30/1014
  • Under Account Details column, select Account = Purchases Expenses Account for example
  • Amount = $10,000.00
  • Click Save and Close button

This entry will created Accounts Payable balance of $10,000.00 to Simon Manufacturing’s account

Step # 2 Write Journal to show payment to Vendor by LOC

Journal Entry
Journal Entry

From the Home page screen

  • Select Create “+” sign
  • Journal Entry under Other
  • Enter the date (for example 4/30/2014)
  • On the first line, click the Account drop-down arrow and select Accounts Payable
  • Under the Debit column, enter the amount ($10,000 in this example) you paid the vendor
  • Enter a memo such as “Paid from line of credit”
  • Under Name, click the drop-down arrow and select the vendor you paid (“Simon Manufacturing” in this example)
  • On the second line Under Name, click the Account drop-down arrow and select the line of credit account (“Line of Credit” in this example)
  • Under the Credit column, enter the amount you paid the vendor ($10,000 in this example)
  • Enter a memo such as “Paid from line of credit”
  • Click Save and Close
Journal Entry for Purchase Payment
Journal Entry for Purchase Payment

Step # 3 Now you need to link the bill payment to the vendor credit paid by LOC:
From the Home page screen

  • Select Create “+” sign
  • Select “Pay Bills” under Vendors header
  • Under Pay to the Order of, select the vendor name (Simon Manufacturing)
  • Under Choose an account for Bank, Select Bank Clearing Account (Add new if needed. This account will always have zero balance.)
  • The screen will refresh and you’ll see a matching amount under Credits and Bill Payment Information.  Click the checkboxes so the amounts match.
  • Leave the amount blank as “0.00” zero. It’s “In and Out” entry, so amount should be zero
  • Click Save and Close button

This entry will clear Accounts Payable and will show payment transaction on Vendor Center.

Apply LOC payment to vendor 1
Apply LOC payment to vendor 1

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