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Orienteer
Level 1

How to reconcile transfer from Kickstarter which later transfered to final intended company?

Hello,

 

We won Kickstarter campaign and received corresponding transfer. But for the idea (for which we had KS campaign) it was decided to establish completely separate company which is not going to be child or any how affiliated with original one. So full amount of money via check were transferred to that company.

So there are 2 transactions which are currently uncategorized:

1) Incoming money transfer from Kickstarter to Company 1.

2) Outgoing money transfer via check from Company 1 to Company 2.

Please advice what's the proper categorization for these 2 transactions?  

1 Comment 1
KimMcCPA
Level 6

How to reconcile transfer from Kickstarter which later transfered to final intended company?

@Orienteer,

 

Congrats on the Kickstarter win!!!

This is an escrow situation, as the money does not belong to Company 1.

Setup [Company 2] Escrow as an Other Current Asset.

Both incoming and outgoing transactions will use this account.

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