welcome to video number 15 in our minimum QuickBooks Series credit card transactions
credit card transactions are so so simple to record in QuickBooks they're exactly the same
as bank account transactions use the register of the credit card account to record the transaction
record all relevant information in the appropriate register and then check the results in the trial
balance for example let's imagine on July 14 Holden charged a delivery with FedEx on his
Capital One credit card for $100 and here's the slip number no problem it said Capital One credit
card was the card he charged it on so we opened that register said the date was July 14 now the
slip number goes in the reference field and I believe the slip number was one two three four
five one two three four five and the payee was FedEx so we find FedEx now FedEx is the vendor
but the service which is the expense was delivery and the amount of charge I believe was $100 $100
now before we record this let's predict what the results will be in the trial balance as soon as I
click record Capital One will show up in the trial balance for the first time with a balance of $100
and delivery expense will increase before I save this delivery expense is nothing is zero so they
will both show up in the trial balance for the first time as $100 I click record now look at
the trial balance Capital One showed up for the first time is $100 and two every expense showed
up for the first time as $100 what about this one July 15th paid electric bill with Holden's Capital
One credit card $250 slip number seven 7 eight 8 nine 9 now before we do this let's try to predict
what the results will be in the trial balance this transaction is $250 electric charged on capital 1
well capital 1 will increase by 250 and become 350 and electric expense hmm I could have sworn
I saw it here before well it's not here yet and that means electric expense is going to show up
for the first time on the trial balance as $250 so again we open the Capital One credit card register
we change the date to July 15th the reference number again was seven 7 eight 8 nine 9 7 7 eight
8 nine 9 the payee was con Edison and the expense which is the service they provided was electric
now again this is a charge so we put it in the charge column for $250 now after we click record
notice that both in the register and on the trial balance the balance of capital 1 increased to 350
and electric expense showed up for the first time in the trial balance as $250 now this next one is
interesting July 16 hold and charged a delivery but this time it's with UPS for $200 and this
time it's in Holdens chase freedom credit-card account and of course they give the slip number
well even though it's a different vendor it's still the same service so the expense for the
July 16th transaction should still be delivery expense so here in the trial balance delivery
expense is only $100 but if we charge for another delivery that costs 200 that means that after we
record this delivery expense will increase to a total of 300 dollars and chase freedom will
show up for the first time on the trial balance as $200 we open the Chase Freedom register we put the
date of the charge which is July 16th I believe the charge was number six 6 seven 7 eight 8 and
this time the payee was UPS but even though it's a different vendor it's still delivery expense
because that's the service and the amount of the charge is $200 at the moment I click record the
results show up in the trial balance exactly as we expect Chase Freedom showed up for the first
time as two hundred dollars and delivery expense increased to three hundred dollars now let's pay
down some of the credit cards how about on July 17 pay capital 150 dollars with check number two
from Holden's Chase Bank account now you have two options on how you might want to record this you
could record it as a check in the Chase Bank register or you could record this as a payment
in the Capital One register it doesn't matter the result in both registers will be exactly
the same so let's take a look at how we would like I would like to record it in the capital
one register as a payment making the reference number the number of the check check number one
so here's what I'm going to show you okay we will open up the Capital One register we will put the
date July 17 the reference number should be number two because that's the check number that we paid
now capital one should be on the list of vendors because there are also people whom we pay and in
addition to being people whom we pay they're also the account but in this case the account is where
the money is coming from the money is coming to the capital one credit card from Chase Bank
so if it's coming from the Chase Bank account you put Chase Bank account as the account now
this is a payment and the amount of payment is $50 notice the balance of capital one decreased
to 300 but the most interesting thing is when we now open the Chase Bank register we see that the
July 17th check number two to Capital One has been recorded in the Chase Bank register as a payment
as well so if you put the two registers next to each other you can see that in the Capital One
register we chose Chase Bank but if you put this in the Chase Bank register the account you choose
is Capital One and the numbers adjust themselves accordingly now let's try some more challenging
credit card transactions how about July 18 hold and charged a new computer from rex repair on
his Chase Freedom Card for eight hundred and fifty dollars well we know that the register he will use
is the Chase Freedom Card and we know the date is July 18th and the number on the slip was one again
one two three four five an incredible coincidence the payee was Rex repair but the biggest question
is what account to choose you see when I chose Rex repair QuickBooks remembered that repair expense
was associated with rex repair however in this particular transaction we Rex did not give us a
repair in this particular transaction Rex gave us an asset so what we have to do is scroll up where
it says asset now normally Rex gives us repair and the computer would be correct if it suggested
repair expense but on July 18th he did not give us a repair he gave us an asset so anything the owner
buys that has value that you can use into the future is an asset and this account asset is going
to show up in the trial balance for the first time as 850 dollars and the asset account is something
your accountant who does your taxes is going to have to look through one by one anyway for any new
asset that was purchased during the year so when we click record the balance goes up to a thousand
fifty if we open the trial balance we see that not only is the chase freedom up to a thousand
fifty but the account called assets which is here shows up for the first time in the trial balance
as eight hundred and fifty dollars what about this one July nineteen hold and paid his kid's dentist
four hundred dollars from his business Capital One credit card well we learned in a previous video
that anytime something is paid from a business bank account for non-business reasons the account
that goes in the transaction is withdrawals so we open up the capital one oh wait before we open the
capital one notice withdrawals is a hundred and fifty but withdrawals is going to increase by four
hundred and become five hundred and fifty and of course the balance of the Capital One credit card
will increase to 700 because we're charging 400 more we open up the capital 1 register we put July
19 reference number well let's leave it blank for now the payee now you could leave the payee blank
or you could put Rene the wife or whoever you want but notice if you put Rene the wife as the
payee QuickBooks remembers QuickBooks remembers that holdings withdrawals goes with this vendor
and it will suggest this account we happen to agree with it in this case so we leave it as
holdings withdrawals and it's a charge of $400 when we click record the numbers are exactly
what we expected capital 1 increased to 700 and Holden's withdrawals increased to 550 dollars
now this last one is very important July 20 Holden took a cash advance of 300 dollars from his Chase
Freedom credit card and they charged him a $15 fee this one is important because the fee increases
the balance of the credit card and they only give him 300 the other 15 is an expense to be safe you
should treat this one as two separate transactions one for the cash advance and another one for the
fee so what will happen after we record this well Chase Freedom will increase by the $300 cash plus
the fee and become 1365 of course bank fees will increase by 15 dollars and become 35 and since
the money is taken out as cash and we have to assume that it's taken for business that means
the business cash will show up for the first time on the trial balance as $300 now it said that we
took the cash from the Chase Freedom so we opened the Chase Freedom register and the date is July
20 the reference number I believe was let's see lo the reference number was something it's nine eight
seven six five just trust me okay reference number nine eight seven six five now you can leave the
payee blank but the money is coming from the chase account to the petty cash account because this is
what counts what cash we have and of course it's a charge because we're charging the cash advance
on the Chase Freedom Card so now it will increase by three hundred click record and now when we look
on the trial balance petty cash shows up for the first time as three hundred and the balance of
Chase Freedom has increased to one thousand three hundred fifty but remember we have to do another
transaction for the fifteen dollar fee let's do that in the same register Chase Freedom on the
same date July 20 okay same reference number so that will tell us it's part of the same
transaction but we will not put petty cash because this money did not go into petty cash the way this
did this is an expense specifically bank fees bank fees were basically charging a bank fee of $15 so
that $15 increases our credit card balance when we click record the balance and capital in the
Chase Freedom is exactly what we expected both in the register and on the trial balance notice the
bank fees increase to $35 and of course the petty cash didn't change by the fee but that's how you
would do that transaction now you didn't think that we're going to let you leave without making
a payment to the other credit card July 21 paid $50 to chase freedom with check number two from
the M&T bank account again you could record it as a check in the MT bank account or you
could record it as a payment in the chase freedom register let's do it the opposite way that we did
before just to prove that it's the same result so this time we're going to open the M&T or the
TM whatever bank account put the date and its check number two now the payee is Chase Freedom
let's we you know we can add a payee on the fly okay I don't think that Chase Freedom is listed
here so you can just click add new it's a vendor click OK and type in Chase Freedom and from now
on when you pay them if you click OK here they will be on the list but the account that's come
that the money is coming to from the TNM bank it's coming to the Chase Freedom and the amount
of the payment is $50 so in the TNM register the money's coming from TNM to Chase Freedom when we
click record we notice the TNM bank balance goes down but if we open to the Chase Freedom register
we see the exact same transaction written the exact same way decreasing the chase freedom so
it doesn't matter which register you put it in as long as you put it into the computer properly