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adjusting journal entry in quickbooks online

Forum|Forum|3 years ago
February 28, 2023
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I made an AJE for the fiscal year end of 06.30.2021 on 02.20.2023 after the CPA finished the tax returns. The CPA created the AJE. Why do the transactions in the AJE (debits and credits) show up on my current YTD balance sheet in 2023, if the journal entry is dated 06.30.2021? This is changing the assets and liabilty on the balance sheet for 2023. On the YTD p&l IN 2023 the AJE dated 06.30.2021 is not effecting the p&l and nn

QuickBooks Online

Best answer by Adrian_A

Hi there,

I'm here to share more information about posting the adjusting journal entries.

The journal entries should've affected your Profit and Loss and Balance Sheet reports since they affect account-related reports. To fix this, ensure that the Report period is set to This Fiscal Year-to-date. If so, and the journal entry is entered as 2021, we can run some troubleshooting steps to fix this matter.

To start with, open the reports through an incognito window to rule out the possibility of a webpage issue. You can refer to these shortcut keys to open an incognito window in all supported browsers:

Chrome: Ctrl+Shift+N
Firefox: Ctrl+Shift+P
Safari: Command+Shift+N

If it works, I recommend that you clear its cache. By clearing them, you can remove that historical data and access QuickBooks with a clean slate. You can also switch to a different supported browser to see if it has something to do with your browser.

I've added these links as your guide in making adjusting journal entries and running reports:

Feel free to post whenever you have concerns about modifying reports.

Adrian_AAnswer

Hi there,

I'm here to share more information about posting the adjusting journal entries.

The journal entries should've affected your Profit and Loss and Balance Sheet reports since they affect account-related reports. To fix this, ensure that the Report period is set to This Fiscal Year-to-date. If so, and the journal entry is entered as 2021, we can run some troubleshooting steps to fix this matter.

To start with, open the reports through an incognito window to rule out the possibility of a webpage issue. You can refer to these shortcut keys to open an incognito window in all supported browsers:

Chrome: Ctrl+Shift+N
Firefox: Ctrl+Shift+P
Safari: Command+Shift+N

If it works, I recommend that you clear its cache. By clearing them, you can remove that historical data and access QuickBooks with a clean slate. You can also switch to a different supported browser to see if it has something to do with your browser.

I've added these links as your guide in making adjusting journal entries and running reports:

Feel free to post whenever you have concerns about modifying reports.

Rainflurry

@9130 3525 3968 4316

Any AJEs that hits the balance sheet accounts (assets, liabilities, equity) that are dated in the past, will change your current balance sheet. That is normal. Your BS is a running total of all entries to those accounts from the day your business started. They're not impacting your P&L because they are dated 2021 and you're running a 2023 YTD P&L which shows only entries posted to income or expense accounts dated 2023. A P&L has a starting date and an ending date, so entries dated outside of those dates do not affect it.

9

9130 3525 3968 4316Author

Now another question has raised.

I have two real estate properties:

I need to add them to the assets and liabilities & expenses.

Balance Sheet

The assets are the purchase price of the homes, correct?

I put the two properties (homes) under fixed assets.

home 1 $225,500

home 2 $250,000

The liability is the $400k Line of credit used to purchase these homes, correct?

Income statement (p&l)

Now, I paid cash for the closing costs, down payment, and earnest money deposits $85,000 (just using round numbers)

This is an expense, right?

home 1 $38,426.91

home 2 $46,417.41

Now, do I need to also include the remaining balance for the total cost of each home in the above expense?

home 1 $208,325.00

home 2 $191,675.00

These two amounts above, are also the same amounts for the Line of credit $400k So if I enter this as an expense will this overstate the liability on the balance sheet?

Thank you.

Rainflurry

@9130 3525 3968 4316

The liability is the $400k Line of credit used to purchase these homes, correct? Yes.

Now, I paid cash for the closing costs, down payment, and earnest money deposits $85,000 (just using round numbers) This is an expense, right? No. The only things that are an expense are the loan fees. Everything else is put into the asset basis of the property. When you depreciate the basis, that is the expense that hits your P&L.

So, to summarize, all of the costs for the properties with the exception of the loan fees are put into the fixed asset account of the property. The journal entry would look something like this:

	Debit	Credit
Property 1 (Fixed Asset)	All costs less loan fees
Property 2 (Fixed Asset)	All costs less loan fees
Loan fees (Expense)	XXX
Loan payable (mortgage/LOC)		XXX
Cash (downpayment, etc)		XXX

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