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REIMBURSE OWNER FOR PAID EXPENSES

Posted by Sandy 
REIMBURSE OWNER FOR PAID EXPENSES
February 05, 2014 12:59AM
Qestion is: This is a newly created company where we are renting trucks at 1099 employees as vendors. The owner paid the vendors out of his pocket and I need to show the employees paid per week so it show on their annual 1099 forms as a vendor and I also need to show the owner reimbursed so that the books balance. Can you show me how to proceed ?
Re: REIMBURSE OWNER FOR PAID EXPENSES
February 08, 2014 08:04PM
The first thing you need to do is clarify if they are vendors or employees. If you are paying employees then you would need to run payroll. If these are all vendors and need to be issued a 1099 at the end of the year then you would need to use the 1099 wizard to map the correct expense accounts.

For the out of pocket expenses you would first need to setup a petty cash account then use the following journal entries:

This will record the owner putting cash money out of his pocket.
Petty Cash XXX
Owners’ Equity XXX

This will record the payment to the vendor
Expense account XXX
Petty Cash XXX
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