Computerized Farm Record Keeping with Quicken® 2003

Bulletin 908

Credit Cards & Lines of Credit

Making Entries

Credit card or line of credit transactions are entered into the appropriate register just like making entries into a checking account register. Each farm related transaction should be entered into the credit card register. Just like in a checking account register, credit card transactions can also be entered as split transactions if necessary. For credit card transactions that are for only personal expenses, it is optional if this type of transaction is entered into the register.

**Note** When you use a line of credit or a credit card to pay business expenses, those expenses are deductible at the time of the charge (or payment from the credit line) rather than when the credit card statement is actually paid. To make sure these expenses are deducted in the correct year, you need to enter the business related charges in your credit card account as soon as possible after the transaction is made.

Example:

You and your spouse are going out to dinner for your anniversary. On the way to the restaurant you stop at the Farm & Ranch Store to pick up a few things for the farm. You use your Master Card to pay for the items. At the restaurant, the bill for dinner is $50 and you charge it to your Master Card. The following split transaction is entered into your Farm Master Card account.

Date	Payee	Memo	Category	Amount
1/15/XX	Farm & Ranch Store		--SPLIT--	$607.50
	**Split Screen Detail**
	Category	Memo		Amount
	1. Fuel & Lube	Oil for truck		75.00
	2. Supplies, LS	Cattle supplies		400.00
	3. Repairs:Mchy	Chisel plow shank		125.00
	4. Hmisc	Candy for grandkids		7.50

**Note** This transaction was entered as a split transaction since there are multiple categories. The personal transaction was included since it was part of the transaction at the Farm & Ranch Store.

**Note** Since it is not mandatory that transactions of a personal nature are entered in the Farm Master Card account, the restaurant transaction was not entered. Without the personal transactions entered, the account balance will not be correct. The correct outstanding balance is $657.50, but only $607.50 has been actually entered into the register.

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