Video

Hello Chris, glad you found it helpful! Here is the answer to your question (yes will make the video on this as well) Sale of Fixed Asset will be recorded as follows... Assuming Fixed Asset Cost was $10K and its been depreciated for $7500 in Books. Additional Dep up to date of sale - $500 (which is to be recorded in books). Now you sell it for $4k. Step 1 - Record the remaining dep of $500 in the books using the method in this video. Step 2 - Dr. Cash/Bank - $4000 Dr. A/D - $8000 Cr. Fixed Asset - Cost - $10000 Cr. Gain/Loss on Sale of F/A - $2000 (Plug) Note - This will be other income type account and this account will be debited in case you had a loss on sale - e.g. if you had sold this asset for $1k Hope this helps! Do subscribe to the channel :)

Very welcome! Glad you found it helpful :)

Thanks!

Welcome! Glad you found it helpful :)

Thank you! Glad you are finding it useful!

Thank you! Do subscribe to the channel :)

Hi! Glad to hear it was helpful :) Actually this is not possible in QuickBooks. You have to either manually put it on the invoice or attach a report to the invoice that shows trust balance. Do subscribe to the channel if you haven’t yet :)

Hi, for Vehicle purchase, yes. For lease - no. In case of leased vehicles - you would enter lease payments as expense as you incur them. Down payment will be expensed as well.

Hi! Great question! Thank you for pointing it out. If there is an open bill in Company B, then instead of debiting Insurance expense in JE in Company B, you would debit Accounts Payable and enter vendor name in "Name" field. Once JE has been saved, you will go to the bill that was open in company B (and was paid by Company A), click on mark as paid, offset the bill with JE you just recorded. This will create a Zero transaction and will mark the bill paid in Company B. Hope this answers your question :)

@@placcountingsolutions Great! Thank you so much. I just tried it. So I see the bill is closed with JE but it also generated bill payment(Check) with $0. Is it okay to just leave it? I'm wondering if I did something wrong..

Very welcome :) yes please leave the zero txn as that’s the txn connecting bill and JE. Also do subscribe if you haven’t already! Thank you

@@placcountingsolutions Will do. Thank you so much!! :)

Happy accounting 😊

You're welcome! please subscribe to the channel if you haven’t already :)

@@placcountingsolutions I did subscribe. I watched / clicked on about 5 other videos on how to do a bounced check. I couldn't figure it out until I saw your video. Very well presented and explained. I'm so glad I found your channel. Have a great day.

So glad you found it helpful! Have a great day!

Very welcome :) Do subscribe to the channel if you haven’t yet.

Glad you found it helpful!

Hi! Will explain... There are two ways of dealing with accrued expenses. 1. The way I explained that accrued expenses get reversed in following period and then you book the expense normally as if it was never accrued for. 2. The way you mentioned that we keep the accrual as a liability and when payment is made in following period, you would debit that liability account and credit cash. Both are perfectly fine! One benefit with the first one is that you don’t have to memorize or review accrued expense report to see if certain expense has been accrued or not to see which account to debit. Since accrual has been reversed already, you can post the entry normally to an expense account. But again, you can do it your way too :)

Purpose of the journal entry is to recognize the prepaid expenses as actual expenses in the correct period. If insurance expense was paid for 12 months, then we post it to prepaid expense and every month we move 1/12th of it to actual expense account. I mentioned Balance sheet and P&L because Prepaid expenses sit as assets on balance sheet and with the journal entry they are recognized as expense and brought into P&L every month. Hope this helps. If not, please feel free to email me and I can further explain - Info@placcountingsolutions.com

Depreciation expense is considered an operating expense and yes it shows up on profit and loss statement.

@@placcountingsolutions Thank you.

Very welcome :)

Hello, yes, the recurring dates can only be in future. QB won’t make recurring entries in past.

Thank you! So let me explain :) There are two ways of dealing with accrued expenses. 1. The way I explained that accrued expenses get reversed in following period and then you book the expense normally as if it was never accrued for. 2. The way you mentioned that we keep the accrual as a liability and when payment is made in following period, you would debit that liability account and credit cash. Both are perfectly fine! One benefit with the first one is that you don’t have to memorize or review accrued expense report to see if certain expense has been accrued or not to see which account to debit. Since accrual has been reversed already, you can post the entry normally to an expense account. But again, you can do it your way too :)

@@placcountingsolutions Right. Now I get it. Thank you very much for the explanation.

Very welcome !Do subscribe to my channel if you haven't already :)

@@placcountingsolutions Subscribed.

👍

Amounts you would get from depreciation schedule in your tax return OR you would calculate in an excel schedule and then post the entry here with that amount. Calculations are beyond the scope of this video. Hope this helps :)

You're welcome!

Thank you for letting me know 🙏 Will upload videos with full screen tomorrow!

Glad you found this helpful :) feel free to suggest any other content you would like to see on Quickbooks.

Hi, do you mind sending an email to Info@placcountingsolutions.com explaining your situation? What was the advance for exactly - buying an asset ?? I need to know little more to be able to provide accurate entry that should be made. Thank you