1. Accounting for a Service Company

2.  Record Transactions  Prepare a Trial Balance  Make Adjusting Entries  Prepare an Adjusted Trial Balance  Financial Statements & Other Financial Records Income Statement Balance Sheet Statement of Cash Flows Journal Ledger  Closing

3.  Owner Investments  Purchases  Make Payments  Sales  Receive Payments

4.  Use Record Deposits tool Journal Entry Your Name Checking(Cash) Opening Balance Equity (Capital Account)

5.  Use Write Checks tool Journal Entry Supplies Cash

6. Purchases on Account - Credit Purchases  Use Enter Bills tool to record purchase  Use Pay Bills tool to record payment Journal Entry - Purchase Supplies Accounts Payable Journal Entry - Payment Accounts Payable Cash

7.  Use the Record Deposits tool Journal Entry Cash (Your Name Checking) Sales

8.  Use the Invoices tool to record sale  Use the Receive Payments tool to record customer payments  Use the Record Deposits tool to record deposits Journal Entries Accounts Receivable Sales Cash Accounts Receivable

9.  Used with frequently recurring transactions  Transactions have some static (non-changing) data  Saves time entering data  Record with Edit>Memorize Bill or Ctrl + M  Recall with Lists>Memorized Transactions List or Ctrl + T, then double-click the transaction to use

10.  Recorded at the end of the accounting period  Brings certain account balances up to date prior to preparing the financial statements  Record in QuickBooks using Company>Make General Journal Entries

11. 1. The Trial Balance indicates a balance of $800 in the Supplies account. A physical count of supplies shows that the company has $250 of supplies on hand. Prepare the adjusting entry to update the appropriate accounts. 2. The company purchased an automobile for $20,000 to be used in the business. The automobile is expected to have a useful life of 5 years and a salvage value of $5,000. Prepare the adjusting entry to update the appropriate accounts. 3. The company has a $12,000 note payable. Interest is to be paid when the note matures, but accrues annually at a rate of 6%. Prepare the adjusting entry to update the appropriate accounts.

12.  Prepare as of the last day in the fiscal period  Income Statement – Shows the results of operations over a period of time (revenue – expenses)  Balance Sheet – Shows a company’s financial position as of a particular point in time (assets = liabilities + equity)  Statement of Cash Flows – shows how and why the Cash account has changed over a period of time

13.  Close accounts in QuickBooks by setting the Closing Date Company>Set Closing Date  Close temporary Accounts Revenue Expenses Income Summary Drawing/Dividends