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Thevansm
Level 1

Equipment

Good day,

 

Any help with this is appreciated. Thanks in advance.

 

I'm starting a coffee shop that is registered as a LLC with 1 owner. The coffee shop is not yet operational. I started buying equipment for the business and paid for it out of my pocket. However, the owner of the space we are renting is also responsible for our buildout and recently handed me a check to reimburse me for equipment I purchased which he is willing to cover because it will be built in and we won't be able to take it with us if we move out. This is equipment like hand wash sinks, 3 bay sinks, etc.

 

My question is how do I record: (1) the purchasing of the equipment I paid out of my pocket, (2) and the reimbursement I received from the building owner. A side note - all expenses paid out of my pocket has been recorded as 'owner's contribution' in quickbooks online. 

 

Thanks,

Marcel

 

 

2 Comments
Jovychris_A
QuickBooks Team

Equipment

Thanks for posting to the Community, @Thevansm.

 

It's good to see that you're doing well with your business. You can record the equipment by making a journal entry and then select the expense account for the purchase.

 

Here's how:

  1. Select + New.
  2. Select Journal entry. Or, if you're in Business view, switch to Accountant view first. Then come back to these steps.
  3. On the first line, select the expense account for the purchase.
  4. Enter the purchase amount in the Debits column.
  5. On the second line, select Owner's equity.
  6. Enter the same purchase amount in the Credits column.
  7. Select Save and close.

 

Second, Decide how you want to reimburse the money.

 

For the reimbursement, you have two options.

Option 1: Record the reimbursement as a check.

  1. Select + New.
  2. Select Check. Or if you're in Business view, follow the steps to switch to Accountant view first. Then come back to these steps.
  3. Select a bank account to use to reimburse the personal funds.
  4. In the category column, select Owner's equity.
  5. Enter the amount to reimburse.
  6. Select Save and close or Save and new.

Option 2: Record the reimbursement as an expense.

  1. Select + New.
  2. Select Expense or Add expense.
  3. Select a bank account to use to reimburse the personal funds.
  4. In the category column, select Owner's equity.
  5. Enter the amount of the reimbursement.
  6. Select Save and close.

 

It will be recorded this way in QuickBooks. You can refer to this video article for more details: Pay for business expenses with personal funds.

 

Just in case you wanted to record funds transfer between two accounts, you can refer to this article: Transfer funds between accounts.

 

Please let me know if you have more questions. I'm always here to help. More power to your business!

Rustler
Level 15

Equipment

@Thevansm 

 

deposit the funds received and  use owner equity investment as the source account for the deposit

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