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Old 04-11-2006, 09:51 PM
DEWARS DEWARS is offline
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Journal entries

I am setting up my Nieces Boutique store's Balance sheet items which include her inventory - which is quite massive. She has made numerous purchases for inventory, assets and some expense items such as supplies with her personal credit cards and checking account. I have finally gotten her to use a business credit card and business checking account. And hopefully, I can convince her to migrate to Quickbooks retail version POS.

Anyway, my questions involve setting up her inventory and assets. As I enter her store's inventory (via new items section) the offset is Equity. Should I offset all her purchases for Fixed assets - such as computer, store items - desk, counters displays etc as journal entries dr to fixed assets and Cr to owner's equity? Can this be done for supplies she has purchased for the store. All were bought with personal accounts prior to the store opening.

Any help would be most appreciated.

Dewars
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Old 04-12-2006, 05:03 AM
Joe Williams Joe Williams is offline
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You could use Owner's Equity or Owner's Paid in capitial (equity type).
The Open Balance Equity it athe account QB uses and can be journaled to the correct account(s) after the setup is complete
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Old 04-14-2006, 08:26 AM
DEWARS DEWARS is offline
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Thanks so much for your help.

This is what I am doing. Anything she has paid for outside of using a company account (company petty cash, checking or credit card) my journal entries are:
Dr. - Inventory: Merchandise or Expense or Furniture and Fixtures, etc.
Cr. - owner's equity.

Joe, you wrote, "The Open Balance Equity it athe account QB uses and can be journaled to the correct account(s) after the setup is complete." I am not sure what you meant by this? What other journal entries would I make after setting up the Company that would pertain to the above?

Thanks.

Dewars
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Old 04-14-2006, 06:25 PM
Joe Williams Joe Williams is offline
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In srtict accounting there is no Open Balance Equity and QB's use of it drives CPAs nuts. It is just a n account used when you create a new balancesheet account with a balance. The balance must go some where and that is the account QB uses and you can journal it to Owner's Equity, Shareholders Ect. If you want it does not hurt to leave it in Open Balance Equity.
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Old 04-14-2006, 09:17 PM
DEWARS DEWARS is offline
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Joe thanks for the answer. Once I have all her inventory, expenses and assets that she paid with personal accounts set up, I will take your advice and transfer to Owner's equity. Wouldn't want her tax person to go ballistic. LOL

Thanks again.
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