Thank you for the detailed post, NNG Enterprises.
Allow me to help you record these transactions in QuickBooks. First off, you can create a liability account with a balance of $32,227.
- Click Accounting on the left pane.
- Select Chart of Accounts.
- Select New.
- From the Account Type drop-down menu, select Other Current Liabilities.
- From the Detail Type drop-down menu, Trust Accounts - Liabilities.
- Enter a name for the account (Health Insurance Premium) or accept the suggested name.
- Enter the balance amount.
- Select Save and close.
Then, record the payments by creating expense transactions using the account you just created. You can record the increased premium amount via journal entry. You can check this with your accountant to make sure it's recorded correctly.
Furthermore, canceling the insurance means you have to reverse the JE to zero out the balance of the liability accounts. You'll need your accountant for this.
You can check this article to learn more: Record a retainer or deposit.
If you have other questions about recording your health insurance premiums, don't hesitate to leave a reply.
