COMPUTER ACCOUNTING WITH QUICKBOOKS 2011 CHAPTER 10

C HAPTER 10 O VERVIEW  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 2011

E ASY S TEP I NTERVIEW 1.Select File > New to open EasyStep Interview. 2.Answer EasyStep Interview questions to set up a new company. COMPUTER ACCOUNTING WITH QUICKBOOKS 2011

E ASY S TEP I NTERVIEW Some differences for the Merchandising Company:  Select Industry: Retail Shop or Online Commerce.  Track Inventory: Yes COMPUTER ACCOUNTING WITH QUICKBOOKS 2011

C HART OF A CCOUNTS  QuickBooks automatically creates a Chart of Accounts for industry you select.  Chart of Accounts for a merchandiser includes additional accounts, such as Inventory. COMPUTER ACCOUNTING WITH QUICKBOOKS 2011

C USTOMIZE C HART O F A CCOUNTS 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 2011

C REATE L ISTS Create Lists to track additional information:  Customer List  Vendor List  Item List (Inventory)  Employee List COMPUTER ACCOUNTING WITH QUICKBOOKS 2011

1.Enter customer information in the Customer List 2.Add job information to the Customer List. C USTOMER L IST COMPUTER ACCOUNTING WITH QUICKBOOKS 2011

V ENDOR L IST Enter vendor information into the Vendor List. COMPUTER ACCOUNTING WITH QUICKBOOKS 2011

I TEM L IST Enter information about items to be purchased and sold: 1.Service items 2.Inventory items 3.Non-inventory items (including sales tax) COMPUTER ACCOUNTING WITH QUICKBOOKS 2011

O PENING A DJUSTMENTS For existing companies with opening balances, QuickBooks offsets the opening balances. 1.Accounts receivable opening balances are offset to Uncategorized Income account. 2.Accounts payable opening balances are offset to the Uncategorized Expenses account. 3.Opening balances for inventory items and all other accounts are offset in the Opening Balance Equity account. COMPUTER ACCOUNTING WITH QUICKBOOKS 2011

O PENING A DJUSTMENTS Record opening adjustments using journal entries. 1.Transfer Uncategorized Income to Opening Balance Equity account. 2.Transfer Uncategorized Expenses to Opening Balance Equity account. 3.Transfer Opening Balance Equity account balance to Capital Stock account. COMPUTER ACCOUNTING WITH QUICKBOOKS 2011

P URCHASES OF I NVENTORY For a merchandising company, record credit purchases: 1.Enter inventory items ordered using Purchase Order icon. 2.Record items received using Receive Inventory icon. 3.Record bill received using Enter Bills Against Inventory icon. 4.Pay bill when due using Pay Bills icon. 5.Print the check using Print Checks icon (in Banking section of Home page). COMPUTER ACCOUNTING WITH QUICKBOOKS 2011

R ECORD T RANSACTIONS Record transactions for a merchandising corporation including: 1.Owners’ investment 2.Purchase of inventory 3.Sales to customers COMPUTER ACCOUNTING WITH QUICKBOOKS 2011

S ALES T RANSACTIONS Enter sales transactions with customers: 1.Prepare an invoice to record customer charges using Invoice window. 2.Record customer payment using Receive Payments window. 3.Record deposit in bank using Make Deposits window. COMPUTER ACCOUNTING WITH QUICKBOOKS 2011

P RINT T RIAL B ALANCE To verify the accounting system is in balance at year-end, print a Trial Balance before making adjusting entries. COMPUTER ACCOUNTING WITH QUICKBOOKS 2011

A DJUSTING E NTRIES Use the onscreen Journal to enter adjusting entries to bring account up to date at year end. COMPUTER ACCOUNTING WITH QUICKBOOKS 2011

P RINT A DJUSTED T RIAL B ALANCE To verify the accounting system is still in balance after making adjusting entries, print an Adjusted Trial Balance. COMPUTER ACCOUNTING WITH QUICKBOOKS 2011

P RINT R EPORTS Financial reports for the year include:  General Ledger  Profit & Loss  Balance Sheet  Statement of Cash Flows COMPUTER ACCOUNTING WITH QUICKBOOKS 2011

C LOSE THE A CCOUNTING P ERIOD QuickBooks automatically closes the accounting period by closing all temporary accounts. COMPUTER ACCOUNTING WITH QUICKBOOKS 2011

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