Gift Cards on Chart of Accounts

Gift Cards on Chart of Accounts

Gift Cards on Chart of Accounts

What account on the chart of accounts do I have to use when I bought gift cards as Christmas presents for our employees?

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Dec 28, 2017
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by: Stephanie

Thank you for your question about what account on the Chart of Accounts you should use when you buy gift cards as Christmas presents for your employees.

When you purchase the gift cards for your employees, you can categorize the cost of the gift cards in a direct gift expense account on the chart of accounts by debiting the expense account and crediting the bank account.

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Gift Certificate on Chart of Accounts

Gift Certificate on Chart of Accounts

Gift Certificate on Chart of Accounts

If we purchased a gift certificate for a client using our business visa, what Chart of Account category would that fall under?

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Dec 12, 2017
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by: Stephanie

If you purchase a gift certificate for a client using your business visa, you would categorize this as a Gift Expense on the Chart of Accounts which would be showing as:

DEBIT Gift Expense
CREDIT Visa Credit Card (Liability)

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How To Allocate Employee Benefit on Chart of Accounts

by Anna Kieu
(Cape Town, South African)

Employee Benefit on Chart of Accounts

Employee Benefit on Chart of Accounts

Pleas help me with these..

I bought the microwave, kettle and fridge for the employee.

Which account should I allocate those to on the Chart of Accounts?

Is this Entertainment expense or office equipment ..?

Also, can I claim vat from those expenses?

Thank you !

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Jun 05, 2018
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by: Stephanie

Thank you for your question about how to allocate purchases made for employees on the chart of accounts.

There are typically a few different ways you can account for these kinds of purchases.

One of the main ways to allocate the purchases you made for your employees would be to expense it under an Employee Benefits Expense category.

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Pet Store Chart of Accounts

by Gail
(Daggett, Michigan)

Pet Store Chart of Accounts

Pet Store Chart of Accounts

What does a typical Chart of Accounts look like for a Pet Store?

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Jan 03, 2018
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by: Stephanie

Thank you for your question about what a typical Chart of Accounts looks like for a Pet Store business. Following is a sample Pet Shop COA:

ASSETS:
Petty Cash
Checking Account
Savings Account
Accounts Receivable
Pet Product Inventory
Prepaid Expenses

LIABILITIES
Accounts Payable
Loan Payable
Note Payable
Owner Payable

EQUITY:
Owners Contributions
Owners Distributions
Retained Earnings

INCOME:
Sales Pet Supplies
Sales Returns
Sales Discounts
Interest Income
Other Income

COST OF GOODS SOLD:
Purchases Pet Supplies
Purchses Discounts
Freight
Direct Labor

EXPENSES:
Advertising Expense
Automotive Expense
Insurance Expense
Office Expense
Rent Expense
Repairs & Maintenance
Telephone Expense
Utilities Expense
Other Expenses

This should help get you started and can be added to as needed.

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Quarterly Tax Payments on Chart of Accounts

by cjwimmers
(Indiana)

Quarterly Tax Payments on Chart of Accounts

Quarterly Tax Payments on Chart of Accounts

We pay quarterly tax payments for federal and state taxes to lesson the blow of taxes we owe for our llc. Into what chart of account would I allocate those payments in quickbooks? THANKS for any help!

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Dec 28, 2017
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by: Stephanie

Thank you for your question about where to allocate the quarterly tax payments on your Chart of Accounts for your LLC business.

LLC owners and members are considered to be self employed which means they are not subject to withholding taxes from earnings and so must pay quarterly taxes.

These quarterly taxes are considered a personal expense and are not a tax deduction to the LLC business; Therefore the Federal and State quarterly estimated tax payments should be shown as two separate subcategories under the Member Distributions Equity account.

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Sales Promotions on Chart of Accounts

by Naz
(Kuwait)

Sales Promotions on Chart of Accounts

Sales Promotions on Chart of Accounts

Hello, Let me first of all thank you for help all over the world..

How to account for sales promotions expense and stock consumption..

Lets say we are supplier of Pepsi.. we have a promotion and we are distributing free Pepsi to 5000 people..

How to record it on the chart of accounts?

Thanks in advance for any help!

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Dec 28, 2017
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by: Stephanie

Thank you for your question about how to account for sales promotional expenses on the Chart of Accounts.

When pulling products out of an existing inventory to give away as promotional samples, there must be a journal entry to adjust the inventory account on the general ledger.

To do this you would use the actual cost of manufacturing the items, including storage costs and any other expenses used in the company's cost of goods sold calculation.

Then you would Debit sample expenses or prepaid expenses, depending on whether you are expensing or capitalizing your sample costs.

And you would Credit the inventory account for the same amount.

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Sole Proprietorship Chart of Accounts

by Lori
(Denver, Co, US)

Sole Proprietorship Chart of Accounts

Sole Proprietorship Chart of Accounts

I have a Sole Proprietorship business for aviation maintenance/repair service only. No sales, no parts, no employees.

The business has one checking account and one bank loan on the hangar I work out of. Is below correct at all?

Bank/Cash Acct - asset
Opening balance - equity account
Retained earnings - equity account
Owners equity account
sub acct Owners draw
sub acct Owners contributions
Hangar long term liability account
sub acct Mtg payable
sub acct Mtg interest expense account
Hangar asset acct
Current liability accounts
expense accounts
Revenue/Income acct
other income acct
Fixed assets/depreciation
other assets/notes receivable
Contributions acct
Allocation of 1/4 est taxes to owners draw
account

Please advise,
Thanks!
L

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Dec 12, 2017
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by: Stephanie

Thank you for your question about how to setup a chart of accounts for a sole proprietorship. I have recreated your list in the order it should be shown on the Chart of Accounts and whether or not it would show up on the Balance Sheet (BS) or Profit and Loss (PL) Statement below:

Bank/Cash Acct asset (BS)
Hangar asset acct (BS)
Fixed assets/accumulated depreciation (BS)
Other Assets/Notes Receivable (BS)
Current liability accounts (BS)
Hangar long term liability Account (BS)
Mtg payable (BS)
Opening balance equity account (BS)
Owners equity account (BS)
Owners contributions (BS)
Owners draw (BS)
Allocation of est taxes to owners draw (BS)
Retained earnings equity account (BS)
Revenue/Income acct (PL)
Other Income acct (PL)
Expense accounts (PL)
Mtg interest expense account (PL)

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Tax Refund on Chart of Accounts

Tax Refund on Chart of Accounts

Tax Refund on Chart of Accounts

How would you classify a tax refund check on your chart of accounts?

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Jun 05, 2018
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by: Stephanie

Thank you for your question about how to classify a tax refund check on your chart of accounts.

As a sole proprietor, you should classify your tax refund as an Owner's Contribution which would show on your balance sheet.

An example would be:

DEBIT Checking Account (Asset)
CREDIT Owner's Contribution (Equity)

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Wife of Business Owner Helping With Chart of Accounts

Business Owner Help

Business Owner Help

Thank you for the basic bookkeeping 101 info. You touched on a topic that I have a question on--

Sole proprietorship owner's drawing account. Should the "personal expenses" i.e. groceries and other household items be "lumped" in the Owner's Draw?

Right now they are basically showing as "undesignated" expenses because I didn't know what to do with them.

Leigh

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May 25, 2018
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starstarstarstarstar 		Personal Expenses on Balance Sheet
by: Stephanie

Thank you for your inquiry about how personal expenses and other household items she be accounted for under Owners Draw.

You can use subcategories under Owner's draw to give you more detail into how you are spending your money. This can also be useful for keeping track of additional possible tax write offs, such as medical expenses, and office in home deductions for rent and utilities.

This is a personal preference really. You can lump all under Owners Draw or use subcatories for more specific reporting.

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