Computer Accounting with QuickBooks 2012 Chapter 10 Merchandising Corporation: Sales, Purchases and Inventory Donna Kay McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

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 10-2

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 10-3

New Company Select File > New Company Select Advanced Setup 10-4

EasyStep Interview Answer EasyStep Interview questions 10-5

EasyStep Interview Some differences for the Merchandising Company: Select Industry: Retail Shop or Online Commerce Track Inventory: Yes 10-6

Add the People You Do Business With 10-7

Add the Products and Services You Sell 10-8

Add Your Bank Accounts 10-9

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. 10-10

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 10-11

Create Lists Use Lists to track additional information: Customer List Vendor List Item List (Inventory) Employee List 10-12

Customer List Enter customer information in the Customer List Add job information 10-13

Vendor List Enter vendor information into the Vendor List. 10-14

Item List Enter information about items to be purchased and sold: Service items Inventory items Non-inventory items (including sales tax) 10-15

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. 10-16

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. 10-17

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). 10-18

Record Transactions Record transactions for a merchandising corporation including: Owners’ investment Purchase of inventory Sales to customers 10-19

Sales Transactions Enter sales transactions with customers: Prepare an invoice to record customer charges using Invoice window. Record customer payment using Receive Payments window. Record deposit in bank using Make Deposits window. 10-20

Print Trial Balance Print a Trial Balance before making adjusting entries to verify the accounting system is in balance at year-end. 10-21

Adjusting Entries Use the onscreen Journal to enter adjusting entries to bring account up to date at year end. 10-22

Print Adjusted Trial Balance Print an Adjusted Trial Balance to verify the accounting system is still in balance after making adjusting entries. 10-23

Print Reports Financial reports for the year include: General Ledger Profit & Loss Balance Sheet Statement of Cash Flows 10-24

Close the Accounting Period QuickBooks automatically closes the accounting period by closing all temporary accounts. 10-25

To Learn More … Turn to Chapter 10 Visit the Online Learning Center http://www.mhhe.com/kay2012 Visit www.myquickbooks.me 10-26