QBP2007 Journal Entry or process with QuickBooks?

Posted by Nathan on September 2, 2007, 10:45 am

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: quoted-printable

How would you transact "Accrued Distributions" (2006) to be distributed =
to LLC "members" in QuickBooks Pro 2007 or would it be more efficient =
with a journal entry? These distributions will be distributed in 2007 =
after the final audit of the previous fiscal year end 12/31/2006.=20

Would I set up an Equity account Distributions Due Members in Equity =
section to offset Accrued Distributons?
Write a distribution check offsetting Accrued Distributions?

I am just the bookkeeper and we are in the middle of changing =
accountants and implementing the accural basis of accounting.
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<DIV><FONT face=3DArial size=3D2>How would you transact "Accrued =
Distributions"=20
(2006) to be distributed to LLC "members" in QuickBooks Pro 2007 or =
would it be=20
more efficient with a journal entry?  These distributions will be=20
distributed in 2007 after the final audit of the previous fiscal year =
end=20
12/31/2006. </FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Would I set up an Equity account =
Distributions Due=20
Members in Equity section to offset Accrued Distributons?</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>Write a distribution check offsetting =
Accrued=20
Distributions?</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=3DArial size=3D2>I am just the bookkeeper and we are in =
the middle=20
of changing accountants and implementing the accural basis of=20
accounting.</FONT> </DIV></BODY></HTML>

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Posted by Joanne on September 2, 2007, 11:21 am

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How would you transact "Accrued Distributions" (2006) to be distributed to
LLC "members" in QuickBooks Pro 2007 or would it be more efficient with a
journal entry? These distributions will be distributed in 2007 after the
final audit of the previous fiscal year end 12/31/2006.

Would I set up an Equity account Distributions Due Members in Equity section
to offset Accrued Distributons?
Write a distribution check offsetting Accrued Distributions?

I am just the bookkeeper and we are in the middle of changing accountants
and implementing the accural basis of accounting.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

I believe the Journal Entry would be:

Debit to 2006 Distributions
Credit to a Liability Account called Notes Payable or something more
descriptive.

--
Sincerely,
Joanne

If it's right for you, then it's right, . . . . . for you!!!

http://www.jobird.com
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Posted by Z1Z on September 13, 2007, 8:02 pm

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: quoted-printable

The answer Joanne provided is correct insofar as the journal entry is =
concerned, but your question is really an accounting question and not a =
QuickBooks question. So, the answer is that you should not make the =
journal entry. It is not necessary or appropriate to 'accrue' =
distributions regardless of whether you are on the cash basis or the =
accrual basis. You should record the distributions when they are paid. =
This is a much better procedure than attempting the to distributions.
How would you transact "Accrued Distributions" (2006) to be =
distributed to LLC "members" in QuickBooks Pro 2007 or would it be more =
efficient with a journal entry? These distributions will be distributed =
in 2007 after the final audit of the previous fiscal year end =
12/31/2006.=20

Would I set up an Equity account Distributions Due Members in Equity =
section to offset Accrued Distributons?
Write a distribution check offsetting Accrued Distributions?

I am just the bookkeeper and we are in the middle of changing =
accountants and implementing the accural basis of accounting.
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<DIV><FONT face=3DArial size=3D2>The answer Joanne provided is correct =
insofar as=20
the journal entry is concerned, but your question is really an =
accounting=20
question and not a QuickBooks question. So, the answer is that you =
should not=20
make the journal entry. It is not necessary or appropriate to 'accrue'=20
distributions regardless of whether you are on the cash basis or the =
accrual=20
basis. You should record the distributions when they are paid. This is a =
much=20
better procedure than attempting the to distributions.</FONT></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV>"Nathan" <<A=20
=
wrote in=20
message <A=20
=
LrpUUfbnZ2dnUVZ_gGdnZ2d@comcast.com</A>...</DIV>
<DIV><FONT face=3DArial size=3D2>How would you transact "Accrued =
Distributions"=20
(2006) to be distributed to LLC "members" in QuickBooks Pro 2007 or =
would it=20
be more efficient with a journal entry?  These distributions will =
be=20
distributed in 2007 after the final audit of the previous fiscal year =
end=20
12/31/2006. </FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Would I set up an Equity account =
Distributions=20
Due Members in Equity section to offset Accrued =
Distributons?</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>Write a distribution check offsetting =
Accrued=20
Distributions?</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=3DArial size=3D2>I am just the bookkeeper and we are =
in the middle=20
of changing accountants and implementing the accural basis of=20
accounting.</FONT> </DIV></BLOCKQUOTE></BODY></HTML>

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