A a corporation, two of the owner purchased supplies for the business. No credit card transactions were accepted at this booth. The owners purchased supplies with their personal $ funds. I reimbursed them and wrote them a company check. How do I record the reimbursement? Thank you
@Eve2019 I find JEs to be the easiest method when it comes to recording effects on equity, but this one is half and half.
More specifically, to record their original purchase of supplies, you would debit supplies and credit Shareholder Contributions. I suppose you could break it up into the individual owner's purchases, if you're tracking it that finely.
Then, to record the reimbursement, simply create a check with the Write Checks function and, under the Expenses tab at the bottom of the window, select Shareholder Distributions for the account. Do this for each check you wrote to the owners.
At the end, the net effect between Contributions and Distributions should zero out, leaving only the supplies expense and a lower bank account balance, just as if you'd purchased the supplies with the business bank account to begin with.
You could also just have a Shareholder Equity account rather than splitting it into Contributions and Distributions, but I believe that's largely a matter of taste.
I would agree with @FishingForAnswers in terms of recording the reimbursement, @Eve2019.
Let me explain the process of writing a check to record the reimbursement:
For more detailed information, please refer to this article: Create, modify, and print checks in QuickBooks Desktop.
You can also check this article to learn more about managing your income and expenses effectively and addressing any errors: Learn the reconcile workflow in QuickBooks.
The Community is always open for you if you have further inquiries about recording a reimbursement. Keep safe.
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