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  #1  
Old 03-31-2012, 09:29 AM
nidgy nidgy is offline
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Question Uncleared checks in new QB file

Our company is starting up a new QB file April 1, 2012. How do you record the uncleared checks. I was going to go to enter check and record them offseting to an account I made up for historical uncleared transactions. (Account set up on balance sheet). I was going to enter the cleared balance in the bank account which will offset to Opening Balance Equity. Throughout the process I was going to check both registers (old computer/new computer) to make sure they end up the same as of March 31, 2012.
Does anyone see any problems with this? It was suggested to me to do the following but it just confuses me... Enter a JE Dr. Bank and Cr. Bank for the same amount. This will get the GL to balance to the bank account and let you clear checks.
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Old 04-01-2012, 12:48 AM
Joe Williams Joe Williams is offline
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Enter the uncleared checks with the original date and for the account, use an Other Income account named "old income". This will then be reported in Retained Earnings next year.
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Old 04-01-2012, 05:22 PM
nidgy nidgy is offline
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Quote:
Originally Posted by Joe Williams View Post
Enter the uncleared checks with the original date and for the account, use an Other Income account named "old income". This will then be reported in Retained Earnings next year.
I am confused why I would use other income account for uncleared checks that I need to tick off on the new file... these are uncleared checks that still need to clear as the vendors cash them.... not staledated.
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Old 04-02-2012, 12:42 AM
Joe Williams Joe Williams is offline
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The checks should point to the expenses they paid or to some expense account for tax purposes. If the tax year starts on April 1, you need to show the Retained Earnings for previous years. If you are starting a new company (with a new tax ID) then the checks can point to Owner's Equity)
Does the tax year for the company start on Jan 1 or on April 1?
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Old 04-02-2012, 05:15 PM
nidgy nidgy is offline
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The tax year for the new company starts on April 1, 2012...The checks point to the expense accounts on the old file ending March 31, 2012. If I enter them again won't I be double booking them. I was going to enter them to opening beginning balance. I found this old post... For clarification purposes, you should be entering a beginning balance for checking that is the Ending Cleared Balance from the Bank Statement dated 4/30/2006 if May 1st is your start date. Then re-enter any outstanding checks and deposits with their correct dates and amounts to the Opening Balance Equity account and you should wind up with your ending Reconciled Register Balance as of 5/1/2006. The outstanding checks will then be there to check off when you reconcile May. Does this make sense?
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Old 04-03-2012, 05:18 AM
Joe Williams Joe Williams is offline
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Yes. In the Company Preference set the Fiscal Year to Apr 1 so when you run the P&L and other reports you can set the date for Fiscal Year so ONLY the income and expenses dated 4/1/2012 through 3/3/31 will be reported.

You could enter the uncleared checks dated prior to 4/1/2012 using the normal expense accounts or using a balance sheet type account, I prefer the expense account so I can see what they were for.
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  #7  
Old 04-05-2012, 04:00 PM
Deidre56 Deidre56 is offline
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when you load beginning balances into your new file, you will load your March 31 st Balance Sheet. you will load this using a journal entry. since assets = liabilites + equity, your journal entry will balane. When you enter the balance in teh checking account, one line in the journal entry is the March 31st ending bank balance. then list each outstanding check on its own line. by entering each check on its own line, they will list out separately on your bank rec screen. you will need to clear the march 31st bank balance and any new o/s checks that clear in april when you do the april reconcile. clear as mud?
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