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ndfbroadwick wrote:
Owner has 2 companies and each has it's own separate QB. Company A is the Amex cardholder. Used Amex to pay Co B expenses. Bill total was $1000. Co A charges $700 and B charges $300.
B made a direct payment of $300 to Amex and A paid its $700 to Amex.
- How do I record the entries properly in each company's QBs account?
- Do I enter all of the credit card charges including Company B's incurred expenses in Company A account? If so, what is the appropriate account type/name for entering Company B expenses?
- How do I make sure of clearing the balance sheet for each company account?
As mentioned, I recommend they get separate credit cards for each company going forward, so for these transactions that have already occurred, you need to record what was actually already done as they have already been paid. Here is logic to follow/entries that will occur with credit card entries:
1) Expenses should be recorded on the books of the company they belong to, so debit expenses:
a) $700 Co A Debit Expense accounts and QB will Credit CC Liability account for same amount
b) $300 Co B Debit Expense accounts and QB will Credit CC Liability account for same amount
2) Cash should be recorded on books of the company who paid cash to AMEX to match bank info:
a) $700 Co A Debit Payment CC Liability account (to clear to zero) and Credit Cash/Bank account
b) $300 Co B Debit Payment CC Liability account (to clear to zero) and Credit Cash/Bank account
