The question was asked, what to do when the Owner of the computer isn’t the Entity that paid for it by credit card? One party incurred an Expenditure on behalf of another = Other Asset. Other Asset = you Loaned to another.
“This computer should be detailed on the books of Company B who bought it.”
Whoever Owns the computer puts it on their bookkeeping. How it is paid for is Separate. The owning entity either Bought it, or had someone else Buy it for them = went into Debt. Company A Other Asset = Company B Liability balance.
"Obviously, AMEX is on Company A's books and they usually pay the full amount due to AMEX, right?"
Paying AMEX in full or not, isn't part of this discussion. Company A also has AMEX liability, if their AMEX card was used. Whether or not they pay their AMEX, or how they pay, or if Company B pays (the Commingling referred to in this topic, earlier), is handled specifically and approprietly to how that happens.
Example:
Company B pays AMEX directly. Company B enters this as From Checking, against their Liaiblity = Owed to Company A. Meanwhile, Company B now enters that their credit card account balance has been Reduced by the party to whom they "loaned the use of our AMEX card" = they use Banking menu > Credit Card CREDIT, and as the expense, they list their Other Asset Account. Now their Asset account shows it got repaid, just Not To Them. The payment was sent to AMEX directly (Bad idea; avoid commingling by an "arm's Length" transaction = never pay someone else's Credit Card provider directly).
"But that is not what happened, Company B made payment directly to AMEX on Company A's account. This is where it gets messy, but it is a done deal and you cannot change the cash entries on Bank or CC."
It is handled properly; it is just a Bad method and they stated it won't be done like this, in the future.
"If this is already done, there is no outstanding loan to/from either company and no change to equity as
the cash has already been loaned and paid back, so no need to carry on balance sheet from my view."
If it is "already done" then all of these Entries were made.
