Every month or so my business hosts a Charity Ride. We collect cash from riders to reserve their spot in the class. Afterwards I deposit the cash and then write a check for the Charity. Can somebody please help me with the accounting for this type of situation?
Here are the real-life steps of what's happening:
- Receive Cash, Sales increase
- Deposit Cash, Checking account increases
- Write check, charity account expensed
The posted check shows up in my banking transactions to review. I categorize it as "Charitable Contributions", an Expense account. (side note, I also have a sales category for this, "Sales: Charity Rides".). After the check is posted & categorized, I created a Journal entry.
JE Attempt:
Debit – Cash
Credit – Sales: Charity Rides
Debit – Checking account
Credit – Cash
Is this correct? This journal entry with the posted check?
I've tried it a couple ways but can't seem to get my Check to show up under payments when reconciling my checking account. I've probably deleted it / adjusted it too many times. It does show up correctly in my Charitable Contributions register, but not when reconciling my bank statement....
Any help would be appreciated!
For reference, attached is a similar example with both cash + digital donations. Just trying to make sure I'm doing this correct.
