RBC Ownr Refund

Hi mando71,

QuickBooks Online makes it simple to manage the accounting side of your business with its powerful tools and resources. I'd be glad to steer you in the right direction so you can focus on the things you enjoy doing. 

Recording your transactions properly is an essential step for maintaining clean books. I highly suggest reaching out to an accounting professional for expert advice on how to enter the transactions in QuickBooks. If you're not in contact with a professional, don't worry, you can search for one using this link here. I'll also leave this question open so other community accounting experts can chime in and share their advice.

If you still have questions, feel free to leave a comment below. I'll be here to assist. 

Hi, mando71 

01. Post a journal entry

Debit  Cost of Incorporation  $640

Credit  Owners Equity   $640

02. Use the Bank Deposit screen to record the Refund of $300

select the Cost of Incorporation as the Account.

Feel free to contact me for any clarifications.

Hi Mando

Whenever you record stuff in QuickBooks online, try to do it through available functions rather than journal entries.  Take these one step at a time.

For the initial payment of the $640 for incorporation, you mention that was paid on a personal credit card, presumably for the owner.  As such, you should record that as a bill with the owner as the payee, against incorporation costs.  This will end up showing as accounts payable to your owner, and an expense for the incorporation.

For the refund, mark it as a deposit to the bank account, and mark it against the incorporation expense.

Finally, if your owner doesn't plan on being reimbursed by the business, but leaving that initial $640 as an owners investment in the business, you can record that as a credit against the accounts payable, and record it against owners equity - business funding/deposits.

Hope this helps!