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Sland22
November 29, 2023
Question

Non Cash Owners Equity and Inventory

  • November 29, 2023
  • 1 reply
  • 0 views

We formed a new LLC with two owners.  Both owners contributed livestock, as non cash owners equity in the business.  The livestock needs to be listed as sellable inventory.  Now it seems that I have made a double entry and and have twice the amount in inventory.  I have obviously made an error in setting up the inventory account as well as in recording the owners equity.

 

How should these entries have been made?

Thanks. Steve

1 reply

C
CamelleT
November 29, 2023

I'll show you how we can manage these entries, Sland22.

 

Before editing inventory adjustment entries, I suggest you seek advice from your accountant since this can impact your accounting. 

 

Here's how we can make inventory adjustment:

 

  1. Click Search, then Advanced search.
  2. From the All Transactions dropdown, select Inventory Quantity Adjustment.
  3. In the Inventory adjustment account dropdown, choose the appropriate account.
  4. Select Search, then select the adjustment you want to edit. This opens the inventory quantity adjustment.
  5. To edit previous adjustments: 
    a. Change the Adjustment date and the Inventory adjustment account if necessary.
    b. Edit the details in the Previous adjustments section.
  6. (Optional) Enter a note explaining why you edited the adjustment in the Memo field.
  7. Hit Save and close.

 

Furthermore, this link will help you set up reorder points to keep tabs on your inventory: Set up low stock alerts in QuickBooks Online.

 

Drop a reply below if you have additional questions about managing your entries. I'll be here to help. Have a great day!

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