That is a very nice explanation, But if you have a cash income and didn't hit the bank, how do you JE the amount? Will this be JE from the owner draw to the income account?
@@Moe-tu3bd If they did not deposit you record it to cash on hand, then record a transfer from Cash on Hand (bank) to owner's draw. Remember Cash on Hand is manually managed and is not linked to any bank account. The purpose of this is to record that the money was used by the owner and not deposited in the checking account.
How would I add receipts that I found for 2022? They should have been entered as a journal entry but were completely missed. These receipts are for office supplies paid for by the owner out of their own personal funds. We have an owner's contribution account and typically debit in the journal entry office supplies and credit owner's contribution. Can we just enter the receipts and date according to the receipt or do we need to do something special since these receipts are from 2022?
If you already filed taxes this would not qualify as an expense for the current year. If this however is a major expense that was accrued when you first organized the business you can enter as an asset and depreciate it over the years.
Just categorize as subcontractor, if there was more than one you can split. Better yet you can record the money as a transfer to cash then record each contractor expense out of cash.
That is a very nice explanation, But if you have a cash income and didn't hit the bank, how do you JE the amount? Will this be JE from the owner draw to the income account?
Did you record the sale to undeposited funds? If so the next step is to record the deposit to the cash account such as cash on hand or petty cash.
@@ClaudiaXperts
They didn’t deposit it,
@@Moe-tu3bd If they did not deposit you record it to cash on hand, then record a transfer from Cash on Hand (bank) to owner's draw. Remember Cash on Hand is manually managed and is not linked to any bank account. The purpose of this is to record that the money was used by the owner and not deposited in the checking account.
Many
thanks @@ClaudiaXperts
@@Moe-tu3bd you are welcome!
How would I add receipts that I found for 2022? They should have been entered as a journal entry but were completely missed. These receipts are for office supplies paid for by the owner out of their own personal funds. We have an owner's contribution account and typically debit in the journal entry office supplies and credit owner's contribution. Can we just enter the receipts and date according to the receipt or do we need to do something special since these receipts are from 2022?
If you already filed taxes this would not qualify as an expense for the current year. If this however is a major expense that was accrued when you first organized the business you can enter as an asset and depreciate it over the years.
How do I record this.. I did cash withdrawal from the bank and used it to pay a subcontractor?
Just categorize as subcontractor, if there was more than one you can split. Better yet you can record the money as a transfer to cash then record each contractor expense out of cash.