Computer Accounting with QuickBooks 2015 Chapter 10 Donna Kay

Chapter 10 Overview Setup a New Company Customize Chart of Accounts Create Lists Create Sales Tax Item Enter Opening Adjustments Record Transactions Enter Adjusting Entries Print Reports COMPUTER ACCOUNTING WITH QUICKBOOKS 2015

Set Up A New Company Steps to set up a new company Complete EasyStep Interview Add the People You Do Business With Add the Products and Services You Sell Add Your Bank Accounts Enter Company Information Customize Chart of Accounts Lists COMPUTER ACCOUNTING WITH QUICKBOOKS 2015

New Company Select Create a new company Select Detailed Start COMPUTER ACCOUNTING WITH QUICKBOOKS 2015

New Company Enter Name Answer EasyStep Interview questions Select Next Answer remaining interview questions ….. COMPUTER ACCOUNTING WITH QUICKBOOKS 2015

EasyStep Interview Some differences for the Merchandising Company: Select Industry: Retail Shop or Online Commerce Track Inventory: Yes COMPUTER ACCOUNTING WITH QUICKBOOKS 2015

Add the People You Do Business With COMPUTER ACCOUNTING WITH QUICKBOOKS 2015

Add the Products and Services You Sell COMPUTER ACCOUNTING WITH QUICKBOOKS 2015

Add Your Bank Accounts COMPUTER ACCOUNTING WITH QUICKBOOKS 2015

Chart of Accounts QuickBooks automatically creates a Chart of Accounts for industry selected. Chart of Accounts for a merchandiser includes additional accounts, such as Inventory. COMPUTER ACCOUNTING WITH QUICKBOOKS 2015

Customize Chart Of Accounts Customize the Chart of Accounts to fit your specific business needs: Add accounts Edit accounts Delete accounts For each account include: Account number Tax-Line mapping Opening balance, if needed COMPUTER ACCOUNTING WITH QUICKBOOKS 2015

Create Lists Use Lists to track additional information: Customer List Vendor List Item List (Inventory) Employee List COMPUTER ACCOUNTING WITH QUICKBOOKS 2015

Customer List Enter customer information in the Customer List (Customer Center). Add job information COMPUTER ACCOUNTING WITH QUICKBOOKS 2015

Vendor List Enter vendor information into the Vendor List (Vendor Center). COMPUTER ACCOUNTING WITH QUICKBOOKS 2015

Item List Enter information about items to be purchased and sold: Service items Inventory items Non-inventory items Sales tax items COMPUTER ACCOUNTING WITH QUICKBOOKS 2015

Opening Adjustments For existing companies with opening balances, QuickBooks offsets the opening balances. Accounts receivable opening balances are offset to Uncategorized Income account. Accounts payable opening balances are offset to the Uncategorized Expenses account. Opening balances for inventory items and all other accounts are offset in the Opening Balance Equity account. COMPUTER ACCOUNTING WITH QUICKBOOKS 2015

Opening Adjustments Record opening adjustments using journal entries. Transfer Uncategorized Income to Opening Balance Equity account. Transfer Uncategorized Expenses to Opening Balance Equity account. Transfer Opening Balance Equity account balance to Capital Stock account. COMPUTER ACCOUNTING WITH QUICKBOOKS 2015

Purchases of Inventory For a merchandising company, record credit purchases: Enter inventory items ordered using Purchase Order icon. Record items received using Receive Inventory icon. Record bill received using Enter Bills Against Inventory icon. Pay bill when due using Pay Bills icon. Print the check using Print Checks icon (Banking section). COMPUTER ACCOUNTING WITH QUICKBOOKS 2015

Record Transactions Record transactions for a merchandising corporation including: Owners’ investment Purchase of inventory Sales to customers COMPUTER ACCOUNTING WITH QUICKBOOKS 2015

Sales Transactions Enter sales transactions with customers: Create an invoice to record customer charges using Create Invoices window. Record customer payment using Receive Payments window. Record deposit in bank using Make Deposits window. COMPUTER ACCOUNTING WITH QUICKBOOKS 2015

Print Trial Balance Print a Trial Balance to verify the accounting system is in balance before making adjusting entries. COMPUTER ACCOUNTING WITH QUICKBOOKS 2015

Adjusting Entries Use the onscreen Journal to enter adjusting entries to bring account up to date at year end. COMPUTER ACCOUNTING WITH QUICKBOOKS 2015

Print Adjusted Trial Balance Print an Adjusted Trial Balance to verify the accounting system is still in balance after making adjusting entries. COMPUTER ACCOUNTING WITH QUICKBOOKS 2015

Print Reports Financial reports for the year include: General Ledger Profit & Loss Balance Sheet Statement of Cash Flows COMPUTER ACCOUNTING WITH QUICKBOOKS 2015

Close the Accounting Period QuickBooks automatically closes the accounting period by closing all temporary accounts. COMPUTER ACCOUNTING WITH QUICKBOOKS 2015

To Learn More … See Chapter 10 Visit the Online Learning Center www.mhhe.com/kay2015 Visit www.My-QuickBooks.com COMPUTER ACCOUNTING WITH QUICKBOOKS 2015