Correct general journal entry from prior year (closed year)

I don't see a mistake unless it is in your journal entry reflecting the January credit. I would delete that transaction and use the "Enter Credit Card Transactions" option under Banking to make the entry. Toggle the form to credit, show the proper date for the credit card credit, the vendor and the amount with the distribution account as Office Supplies.
If you go to vendor center and look at the transactions for the vendor, you will properly see a negative transaction.

Hi Robert: Thanks for your input. I was concerned about actually deleting that journal entry as it would affect my Retained Earnings for that year which had already been report to IRS with 2003 tax return.

This is what I did, however. Let me know what you think:

1. General Journal entry dated 5/12/08
debit office supplies expense account $19.99
credit accounts payable account $19.99

2. Go into pay bills menu
select office max bill
select apply credits
apply credit
hit pay bill

This allowed me to wipe out the negative balance for that vendor. I think that in my prior version of quickbooks (2002 or 2003) it did NOT have an automatic button in the pay bills menu allowing you to apply credits to open bills. And when I was trying to reconcile my credit card at that time, I could not get rid of the bill showing up in the credit card which I think is why I had done a journal entry crediting the vendor and debiting the credit card account. But this was the wrong approach because it ended up doing an extra credit to that vendor account (I had first done a vendor credit in the enter bills/credits mode then I had done the general journal entry to credit supplies expense account and debit credit card).

Since I had basically double credited the expense account, I had understated my expenses for that year and overstated Retained Earnings.

So this year, I am capturing that understated expense with the 5/12/08 journal entry.

Judi

Perfect!

FIRST TIME USER. I MADE A MISTAKE AND I DELETED GENERAL JOUNAL ENRTIES THAT HAD ALREADY BEEN RECONCILED. THAT MISTAKE CHANGED THE BEGGINING BALANCE OF MY NEXT RECONSILIATION. HOW DO I UNDO THAT DELETE? I NEED HELP! I HOPE TO HEAR FROM SOME ONE SOON. THANKS!

1. Re-create the journal entries. You should be able to find the transactions under Reports - Accountants & Taxes - Audit Trail. Be sure to use the right dates!
2. Re-reconcile you last reconciled statement. Input the closing balance then check off the deleted journal entries that you re-created in step one.
3. Your statement will then balance. (The little 0.00 in the bottom right hand corner where it says "Difference".)
4. Hit "Reconcile Now".
5. Print your reports.
SOON ENOUGH?

WOW! THANKS I APPRECIATE THAT! SOON ENOUGH YOU ASKED? AH, THAT WAS GOOD ENOUGH- I GUESS- JK.. YOU WERE GREAT.....