Owners Equity & QuickBooks

[PaloAltoMark]

Before I formally launched my business, I had incurred many expenses that I paid for out of my personal checking account. These included the cost to create product prototypes and even the cost of making the mold for a plastic parts manufacture. I think the right way to handle these expenses is to somehow assign them to owners equity.

Does anyone know the specific accounting transactions I would need to make in QuickBooks to properly account for this? I have the online version but I think it's pretty close to the desktop software version.

Thanks in advance.

[Freelancier]

Our accountant has us record any expenses that were incurred out-of-pocket as expenses to be paid (accounts payable). Then when you start making money, you pay yourself back against those. On the other hand, the cash you put into the bank account you open, that's going to be owners equity.

But your accountant may want something different. So you should chat with that person just to be 100% sure.

[PaloAltoMark]

OK thanks very much.

[jamesray50]

I would make a journal entry and record these costs as start up costs. Your accountant may amortize them or expense them. To make the entry click on the Banking tab and then click on More. Choose journal entry, debit Start Up Costs (a current asset account) and credit Owner's Contribution (or Member's Contribution). Enter a description in the memo. Click Save. Hope this helps.

[PaloAltoMark]

I would make a journal entry and record these costs as start up costs. Your accountant may amortize them or expense them. To make the entry click on the Banking tab and then click on More. Choose journal entry, debit Start Up Costs (a current asset account) and credit Owner's Contribution (or Member's Contribution). Enter a description in the memo. Click Save. Hope this helps.

Thanks again Jamesray50!