C OMPUTER A CCOUNTING WITH Q UICK B OOKS 2013 C HAPTER 10 Donna Kay Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved

10-2 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

10-3 S ET U P A N EW C OMPANY Steps to set up a new company 1. Complete EasyStep Interview 2. Add the People You Do Business With 3. Add the Products and Services You Sell 4. Add Your Bank Accounts 5. Enter Company Information 6. Customize Chart of Accounts 7. Lists

10-4 N EW C OMPANY 1.Select File > New Company 2.Select Detailed Start

Answer EasyStep Interview questions E ASY S TEP I NTERVIEW

10-6 E ASY S TEP I NTERVIEW Some differences for the Merchandising Company:  Select Industry: Retail Shop or Online Commerce  Track Inventory: Yes

10-7 A DD THE P EOPLE Y OU D O B USINESS W ITH

10-8 A DD THE P RODUCTS AND S ERVICES Y OU S ELL

10-9 A DD Y OUR B ANK A CCOUNTS

10-10 C HART OF A CCOUNTS  QuickBooks automatically creates a Chart of Accounts for industry selected.  Chart of Accounts for a merchandiser includes additional accounts, such as Inventory.

10-11 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

10-12 C REATE L ISTS Use Lists to track additional information:  Customer List  Vendor List  Item List (Inventory)  Employee List

10-13 C USTOMER L IST 1.Enter customer information in the Customer List (Customer Center). 2.Add job information

10-14 V ENDOR L IST Enter vendor information into the Vendor List (Vendor Center).

10-15 I TEM L IST Enter information about items to be purchased and sold: 1.Service items 2.Inventory items 3.Non-inventory items 4.Sales tax items

10-16 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.

10-17 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.

10-18 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 (Banking section).

10-19 R ECORD T RANSACTIONS Record transactions for a merchandising corporation including: 1.Owners’ investment 2.Purchase of inventory 3.Sales to customers

10-20 S ALES T RANSACTIONS Enter sales transactions with customers: 1.Create an invoice to record customer charges using Create Invoices window. 2.Record customer payment using Receive Payments window. 3.Record deposit in bank using Make Deposits window.

10-21 P RINT T RIAL B ALANCE Print a Trial Balance to verify the accounting system is in balance before making adjusting entries.

10-22 A DJUSTING E NTRIES Use the onscreen Journal to enter adjusting entries to bring account up to date at year end.

10-23 P RINT A DJUSTED T RIAL B ALANCE Print an Adjusted Trial Balance to verify the accounting system is still in balance after making adjusting entries.

10-24 P RINT R EPORTS Financial reports for the year include:  General Ledger  Profit & Loss  Balance Sheet  Statement of Cash Flows

10-25 C LOSE THE A CCOUNTING P ERIOD QuickBooks automatically closes the accounting period by closing all temporary accounts.

T O L EARN M ORE … See Chapter 10 Visit the Online Learning Center Visit