and now we will learn how to record payments when we pay with the company credit card it is very
simple to setup your file to be able to pay with the company credit card first make an account in
the chart of accounts that represents the money that you owe to the credit card company secondly
put the credit card company on the vendor list in our example the name of the company that gives us
the credit card will be capital 1 so the name of the account and the chart of accounts that
we will put will be called Capital One credit card and because that's the name of the company
we will also put that name that same name on the vendor list from the main menu click list chart
of accounts and in the bottom left click account new the type of account that we are putting on the
chart of accounts is credit card and this will record all of our credit card transactions we
click continue and confirm that credit card type is chosen and with our cap locks on we will type
Capital One credit card when we click Save and close we can see that we get this advertisement
that we can click no and now we notice that the name Capital One credit card and the corresponding
type credit card has been added to the chart of accounts now let's put the credit card company
on the vendor list from the main menu click vendor vendor Center in the left side of the
vendor Center click vendor new vendor and type Capital One credit card now we have someone to
pay when we make a payment to the credit card click ok and we can see Capital One credit card
has been added to the vendor list recording credit card transactions is 90 to 99 percent the same as
recording transactions with your bank account for example let's imagine on April 5th Holden
charged $1000 of supplies from Staples with the new capital one credit card let's imagine that
the number that was on the credit card slip that came out of the machine was number 1 1 2 2 3 3 4
let's take a look at how we would record this from the main menu click banking enter credit
card charges notice the capital one credit card is already in the credit card field because it is the
only credit card type of account in our chart of accounts we put the date April 5th because that's
the day that we made the charge the vendor to whom we charged the supplies to is Staples the money
amount of the supplies is $1,000 push tab remember the reference number on the credit card slip that
came from the credit card machine when we swiped the card was 1 1 2 2 3 3 4 and the reason that
we paid Staples with the Capital One credit card is supplies so we have more supplies as a result
of charging $1,000 to Staples when we click Save & close we can open the trial balance and check
the results notice for the very first time Capital One credit card shows up on the trial balance as
$1,000 and supplies has increased by $1,000 if we double click supplies and look at the account we
can see that the first two payments for supplies came from checks but this last payment for supply
came from Capital One credit card and you can see transaction type says credit card charge
let's record another let's imagine on April 6th we charge $2,000 to UPS for a delivery let's imagine
that the number that was on the credit card slip that came from the machine when we swiped it was
number five five six six seven seven eight from the main menu choose banking enter credit card
charges the date that we charged was April six the vendor whom we charged was UPS notice QuickBooks
remembers that we paid UPS previously for delivery and it automatically puts the delivery expense
account in the bottom left the money amount was two thousand and of course the unique transaction
number was five five six six seven seven eight now we entered all the data we need for the April six
credit card charge to UPS when we click Save and close we notice that Capital One credit card now
has a balance of three thousand dollars you will also notice that delivery expense has
increased delivery expenses here and before this transaction delivery expense was only 650 now
delivery expenses two thousand six hundred fifty when we double-click delivery expense we can see
that the previous two transactions for delivery were paid by check but this particular delivery
was paid for with the capital one credit card and this charge increased delivery expense to
two thousand six hundred fifty dollars you can pay the credit card directly from the writer checks
when no let's imagine on April 7th we paid Capital One $1000 with cheque number 204 let's make this a
handwritten check before we write this check we notice that Capital One has a balance of 3,000
and the balance of cash has a balance of 30,000 if we pay $1000 to Capital One the credit card
balance will decrease to $2,000 and the cash in bank will decrease to 29,000 823 from the
main menu click banking write a check the date is April 7th the money amount is $1,000 let's remove
the print later option and make sure we type in the handwritten check number two zero four we
choose the payee as Capital One credit card and of course the account in the bottom left is also
the account Capital One credit card so this window is showing us that $1,000 is coming from the bank
account and getting paid to the Capital One credit card when we click Save and close we see that the
balance of Capital One has decreased to $2,000 and the cash and bank has gone down to 29,000 823