When we started the business, my husband purchased supplies out of his own pocket at the beginning. Initially, I put it in as an expense and the Cash on Hand account since he had to get a business bank account. I have tried setting up a journal entry with the amount in the cash on hand debited and credit the Owner's equity. This caused this amount to appear in the Cash account. I then tried a Cash on Hand transfer to the Cash account and then a 2nd part to the journal entry for Cash account and Owner's equity which doubled the amount in the Cash account. I am missing something. I need help with this journal entry- he wanted to get reimbursed for the supplies purchased from the beginning.
Still having an issue... I read community comments before doing this. One said to do an Expense with method of payment for Cash and another read Expense and a Cash on Hand (like a Petty Cash). So I wanted to remove the amount in both the Cash and the Cash on Hand amount to be reimbursed.
How do I set up these expenses with a Payable account? Do I set up a journal entry to do this transfer from Cash and Cash on Hand to Payable? I can't figure out how to get it to acknowledge a payable account in the Expense- it only will allow an asset. We tried to tie the purchased supplies to individual projects to track COGS. How do I retain that with the reimbursement? It involved his first 3 projects while we waited on getting his bank account set up and cards mailed.
When we started the business, my husband purchased supplies out of his own pocket at the beginning. Initially, I put it in as an expense and the Cash on Hand account since he had to get a business bank account. I have tried setting up a journal entry with the amount in the cash on hand debited and credit the Owner's equity. This caused this amount to appear in the Cash account. I then tried a Cash on Hand transfer to the Cash account and then a 2nd part to the journal entry for Cash account and Owner's equity which doubled the amount in the Cash account. I am missing something. I need help with this journal entry- he wanted to get reimbursed for the supplies purchased from the beginning.
Exactly what I needed! You just saved me several hours. Thanks!
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