How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask PDtax Your Own Question
PDtax
PDtax, CPA firm owner
Category: Financial Software
Satisfied Customers: 4154
Experience:  Have used almost every software package available.
64119565
Type Your Financial Software Question Here...
PDtax is online now
A new question is answered every 9 seconds

Tyson gave Jon $130 cash which Jon deposited into his personal

This answer was rated:

Tyson gave Jon $130 cash which Jon deposited into his personal checking account.
Jon paid Legal Zoom $243.95 out of personal checking account for LLC.
Jon opened business bank account with $100 out of pocket cash.
At this point:
Tyson Capital Contribution: $130.00
Jon Capital Contribution: $213.95

How do I go about entering this into Quickbooks so everything is accounted for and we are off to a proper start instead of a mess.

PDtax :

Welcome to the site. I'm PDtax, and will be helping you today.

PDtax :

Quickbooks is a lot like an automated checkbook, and people make the mistake that the only ay to use the software is to enter income and payments through the check register. Not so. Make journal entries.

PDtax :

Since neither entry went theough the LLC checking account, make journal entries for the date and payments as follows:

PDtax :

1 Cash 130

PDtax :

Equity Tyson 130

PDtax :

2 Organization costs 244

PDtax :

Equity Jon 244

PDtax :

3 Equity Jon 244

PDtax :

Equity Jon 114

PDtax :

Cash 130

PDtax :

At the end, $0 cash, organization costs recorded, and equity accounts established.

PDtax :

Hope that covers things. Thanks from Just Answer. Please accept or leave positive feedback to close out your question. I'm PDtax.

Customer:

Okay, let me try that

Customer:

So "Payee" is cash?

Customer:

We are using QB Online, if that makes a difference

PDtax :

That's fine. I treated it as coming in and going out of LLC cash.

Customer:

I went to make a journal entry..it has <payee> <account>

Customer:

so I need to make a need account called "Cash"?

Customer:

need = new

Customer:

I can only make Vendor or Client account

PDtax :

If you want, you could use 'loan-Jon' for each cash transaction. Make that a vendor account.

PDtax :

So the first entry debits loan-Jon and credits Equity - Tyson.

Customer:

wow, this makes no sense...can I just give you access to our online QB and you can make the necessary entries?

Customer:

or is that not cool to do on here?

PDtax :

sorry, I can't do that through the site.

PDtax :

going to Q & A...

Jon,

I would like to try once more to provide the entries you need to set up the initial work done to set up your LLC. With QuickBooks in mind,

1 Note - Jon 130
Equity Tyson 130
2 Organization costs 244
Equity Jon 244
3 Equity Jon 130
Note - Jon 130

At the end, you have the two owner equity investments, and the cost of the LLC fees established.

Thanks for using Just Answer. Please try this solution, and provide positive feedback when you find it will meet your needs. I'm PDtax.

PDtax and 2 other Financial Software Specialists are ready to help you

Related Financial Software Questions