Quicken & Other Budget/Accounting Software/Accounting Entries

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Question
Hi,

1)   The company pay to the “Car Park Company” of $1000 on behalf of the employees first every month, then 5 employees who took the car park will pay back the company individually to petty cash ($200 X 5persons). How to record this accounting entries?

2)   Our company (company A) is a marketing office for our regulator company (Company B). Company A only do marketing and events (no income only expense). Company A’s only source of fund is from Company B. How to record the fund received from Company B for Company A’s operating expenses? Is it also considered as income?

Answer
1 a.  when you write the check post to an Other current asset called "employee receivable    
    I would split that up into 5 split lines, same account
     employee receivable  Joe   $200
     employee receivable  Mary $200
     employee receivable  Hank  $200
    and so on


  b. when an employee pays $200 to petty cash
    create a Journal entry
    debit petty cash
    credit employee receivable Joe, or Mary or Hank

    QuickBooks has a Name field which you can post the names to.
    Or you can set up 5 different chart of  accounts.
    
    I think having 5 different accounts might be better in the long run
    so that you can easily print a report for an employee to show them the
    history of their repayments should they get behind.


2.   Since the company is a separate entity with a separate tax id, then the payments
  would be considered income, and the expenses to create the marketing materials would
  be the deduction against that income.   If the plan is to not have taxable income, you
  may want to REFUND any unspent balances at year end and then have them send a new payment
  in January.


Linda Saltz, CPA
Advanced Certified QuickBooks Advisor
http://www.qbalance.com
We sell and support QuickBooks Enterprise

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Linda Saltz, CPA, QBalance.com

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QuickBooks best practices, troubleshooting, accounting, tax We have over 70 pages of website content about QuickBooks tips, running a business, tax and business startup at http://www.qbalance.com

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