Hello, first time poster and new to the accounting profession. Anyway I'm appealing to the sage knowledge of this forum because I'm stumped.
This year the owner decided to become a public notary. She gave me two invoices from the Pennsylvania Association of Notaries. These invoices include a multiple number of items both tangible and intangible. The physical items included the official notary stamp, a tote bag, and business cards with the official PAN logo. And the intangible items are the license and rights to use the PAN logo and say you're a notary. At first I decided to add a new account to the chart of accounts called Notary Expense, and journalize it as a debit to Notary Expense.
Now the owner wants me to reverse the entries and journalize it as an investment into the business. Can I do this? I was also stumped thinking if I should dissect each line item on the invoice and allocate it to a specific account, such as the notary stamp, is that equipment? Or the business cards, are those office supplies? Or the notary license, should that be a debit to Intangible Asset? One of the big problems with the transaction is that the owner paid for all this using her personal bank account, and not the business bank account. If it should be an expense, should this be included in a general expense account? The business is an LLC but she is the only owner.
This year the owner decided to become a public notary. She gave me two invoices from the Pennsylvania Association of Notaries. These invoices include a multiple number of items both tangible and intangible. The physical items included the official notary stamp, a tote bag, and business cards with the official PAN logo. And the intangible items are the license and rights to use the PAN logo and say you're a notary. At first I decided to add a new account to the chart of accounts called Notary Expense, and journalize it as a debit to Notary Expense.
Now the owner wants me to reverse the entries and journalize it as an investment into the business. Can I do this? I was also stumped thinking if I should dissect each line item on the invoice and allocate it to a specific account, such as the notary stamp, is that equipment? Or the business cards, are those office supplies? Or the notary license, should that be a debit to Intangible Asset? One of the big problems with the transaction is that the owner paid for all this using her personal bank account, and not the business bank account. If it should be an expense, should this be included in a general expense account? The business is an LLC but she is the only owner.
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