1. 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.

2. 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
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3. 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
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4. New Company
Select File > New Company
Select Advanced Setup
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5. EasyStep Interview
Answer EasyStep Interview questions
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6. EasyStep Interview Some differences for the Merchandising Company:
Select Industry: Retail Shop or Online Commerce
Track Inventory: Yes
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7. Add the People You Do Business With
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8. Add the Products and Services You Sell
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9. Add Your Bank Accounts
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10. 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.
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11. 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
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12. Create Lists Use Lists to track additional information: Customer List
Vendor List
Item List (Inventory)
Employee List
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13. Customer List Enter customer information in the Customer List
Add job information
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14. Vendor List
Enter vendor information into the Vendor List.
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15. Item List Enter information about items to be purchased and sold:
Service items
Inventory items
Non-inventory items (including sales tax)
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16. 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.
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17. 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.
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18. 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).
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19. Record Transactions
Record transactions for a merchandising corporation including:
Owners’ investment
Purchase of inventory
Sales to customers
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20. 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.
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21. Print Trial Balance
Print a Trial Balance before making adjusting entries to verify the accounting system is in balance at year-end.
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22. Adjusting Entries
Use the onscreen Journal to enter adjusting entries to bring account up to date at year end.
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23. Print Adjusted Trial Balance
Print an Adjusted Trial Balance to verify the accounting system is still in balance after making adjusting entries.
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24. Print Reports Financial reports for the year include: General Ledger
Profit & Loss
Balance Sheet
Statement of Cash Flows
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25. Close the Accounting Period
QuickBooks automatically closes the accounting period by closing all temporary accounts.
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26. To Learn More …
Turn to Chapter Visit the Online Learning Center Visit
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