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PDtax
PDtax, CPA, MBA
Category: Finance
Satisfied Customers: 4675
Experience:  Tax professional and business consultant for 35 years.
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I am entering my company's financials into quickbooks (cash

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I am entering my company's financials into quickbooks (cash basis) and need to know how to deal with two situations:
1) how do I enter a credit to a credit card from cash back bonus (right now I'm using credit from cash, but that depletes my cash account and it is negative right now, which it can't be)
2) how do I enter when I re-deposit my own paycheck into the corporate account because I need money in that account (right now I'm using a debit to shareholder distribution, but it doesn't feel right)

Hi from Just Answer. I'm PDtax, and can assist.

1) how do I enter a credit to a credit card from cash back bonus (right now I'm using credit from cash, but that depletes my cash account and it is negative right now, which it can't be)

Let's say your business credit card total is $1000 for the month, and you get a $20 credit, making the total $980. You can debit Vis* #1 for $1,000, credit cash fpor the check and credit rebate income for $20.

2) how do I enter when I re-deposit my own paycheck into the corporate account because I need money in that account (right now I'm using a debit to shareholder distribution, but it doesn't feel right) It is right. Your shareholder distribution (I call it shareholder draw) will be the net of the two, and you can fix it at year end.

If cash is that tight, I suggest not taking a paycheck for the week, since you are paying taxes and insurance on money you are not getting. Saves all those taxes, reduces your W-2, etc.

Thanks for asking at Just Answer. Positive feedback is appreciated. I'm PDtax.

Customer: replied 30 days ago.
Thanks, ***** ***** cash rebate is not income, it is tax free

I never said it was taxable. It's a book to tax adjustment. An m-1 item. Remove it from book income for tax.

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PDtax

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