©2012 Pearson Education, Inc. publishing as Prentice Hall 9-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 9—LECTURE CREATING A COMPANY IN QUICKBOOKS.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-3 Chapter Focus: Creating a Company in QuickBooks Program Updates may be obtained  Automatically  Manually The EasyStep Interview is used to set up a company A Chart of Accounts is created for a company Company Info and start dates are set up After the EasyStep Interview, QuickBooks Setup is used to create lists for:  Customers  Vendors  Employees  Items  Bank Accounts Payroll items and employee defaults are created and payroll setup is completed Company preferences are customized

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-4 Updates: Automatic QuickBooks has an automatic update feature If it is turned on, Intuit will send any new updates to your computer using the Internet If you use QuickBooks at home and your program updates and the one at your school does not, you may not be able to access your files at school In actual practice, automatic updates is the recommended setting

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-5 Updates: Automatic For training purposes, turn off automatic updates Click Help on the Menu bar Click Update QuickBooks Click the Options tab Notice Automatic Update is marked Yes

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-7 Updates: Manual Click Get Updates on the Update Now tab  You must use the actual date when you update When the update is completed, click Close

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-8 Create a Company QuickBooks uses the EasyStep Interview to help you create a company To set up a business, you will provide information to QuickBooks regarding:  Company information Name Address Telephone Number Tax ID  Starting Date for keeping records in QuickBooks  Chart of accounts  After the Easy Step Interview QuickBooks Setup is used to create lists for: Customers Vendors Employees Items

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-9 Begin EasyStep Interview Insert USB drive Open QuickBooks Click File Menu Click New Company Whenever you complete a screen, click Next Screens without input may not be shown in lecture

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-10 Begin EasyStep Interview Click Start Interview  Notice the other options: Converting data from Quicken, Peachtree, or Office Accounting Skip the Interview and set up company information on your own

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-14 EasyStep Interview Fiscal year starts in January Since you do not want to limit access to your company files, do not set up an administrator password Click Next

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-15 EasyStep Interview Click Next to create your company file Save in:  Choose your USB drive location File Name:  Your Name’s Movies & More & More (Use your own name) File Type: *.QBW (Think QuickBooks Working file) Click Save

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-25 EasyStep Interview Click No for tracking time  This is done when you want to bill for time spent on a project or if you are paying someone by the hour

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-28 EasyStep Interview Since the textbook date is different from your computer, click “Use today’s date or the first day of the quarter or month” Enter 01/01/11

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-29 EasyStep Interview Review QuickBooks income and expense accounts To customize the chart of accounts, you may:  Click the account name to select an additional account  Click a marked account to deselect it

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-31 QuickBooks Setup QuickBooks Setup allows you to add multiple customers, vendors, employees, sales items, and bank accounts all at the same time. Similar information is filled in for customers, vendors, and employees Individual information is completed for customers, vendors, and employees later

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-32 QuickBooks Setup QuickBooks Setup is divided into three sections:  Add people you do business with  Add products and services you sell  Add you bank accounts

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-33 QuickBooks Setup: Customers, Vendors, and Employees Three ways to add customers and vendors:  By importing information from your address book from Outlook, Yahoo, or Gmail  Pasted from Excel  Manually

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-34 QuickBooks Setup: Customers, Vendors, and Employees Click the Add button on the “People you do business with” screen and enter information  Click Customer, Vendor, or Employee to select  Information added includes: Name, Company Name, First Name, Last Name, Email, Phone, Alt. Phone, Fax, Address, City, State, Zip, and Contact Name

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-35 QuickBooks Setup: Customers, Vendors, and Employees Once customers, vendors, and employees have been added, enter the opening balances and opening balance date for customers and vendors

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-36 QuickBooks Setup: Service Items Second section of the setup adds items to the list. Click Add More on the “Products and services you sell” screen To add a service item, click Service on the QuickBooks Setup screen Enter the information for Name, Description, and Price

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-37 QuickBooks Setup: Inventory Items To add an inventory item, click Inventory Part Enter the Name, Description, Price, Mfg Part #, Cost, On Hand, Total Value, and the As of date

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-38 QuickBooks Setup: Add Bank Account Click the Add button on the “Add your bank accounts” screen Click in the column for Account name, enter the name Checking Tab to Account number, enter 123-456-78910 Tab to Opening balance, enter the amount 29,385.00 Tab to Opening balance date, enter the date 01/01/2011 Click Continue

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-40 Additional Setup After completing the EasyStep Interview, additional information is required:  Company Information: Tax forms Federal Employer Identification Numbers  List information needs to be customized for: Customers Vendors Employees Sales Items  Preferences  Chart of Accounts needs to be refined  Payroll setup must be completed

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-41 Complete Company Information Click Company Info on the Company menu Enter the Federal Employer Identification number: 15-9888654 View other information  Fiscal Year and Tax Year: January  Tax Form: 1040 (Sole Proprietor)

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-42 Chart of Accounts During the EasyStep Interview, QuickBooks created a chart of accounts based on the type of business indicated Chart of Accounts will need to be modified:  Balance Sheet accounts and their balances need to be added  Account names may need to be changed  Accounts may need to be deleted or made inactive

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-43 Chart of Accounts: Rename Equity Accounts Click Chart of Accounts icon Click the account Open Balance Equity Click Account button Click Edit

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-44 Chart of Accounts: Rename Equity Accounts Open Balance Equity needs to be renamed to First & Last Name, Capital  Enter the account name, click Save & Close Repeat the steps to rename Owner’s Equity to Retained Earnings

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-46 Chart of Accounts: Add Equity Accounts with Balances Enter the account name First & Last Name, Investment (use your first and last name) Click Subaccount, click First & Last Name, Capital Click the Enter Opening Balance button, enter 25,000 as of 01/01/11, click OK

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-47 Chart of Accounts: Add Subaccount with Opening Balance The Fixed Asset account, Equipment was not given an opening balance during the EasyStep Interview Equipment is purchased for an amount and is depreciated over time The balance of the Equipment account should reflect the current value of the equipment not the cost Add subaccounts for Equipment:  Original Cost  Depreciation Give Opening Balances to the accounts

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-48 Chart of Accounts: Add Subaccount with Opening Balance With the Chart of Accounts showing, Ctrl+N to add a new account Account Type: Fixed Asset Name: Original Cost Subaccount of: Equipment Opening Balance: 8,000.00 As of 01/01/11 Click OK Click Save & New

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-49 Chart of Accounts: Add Subaccount with Opening Balance Add Depreciation for Store Equipment Create a new account Account Name: Depreciation Subaccount of: Equipment Opening Balance: -800 as of 01/01/11  Must have the minus sign in front of the 800.00 Click OK Click Save & Close

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-50 Chart of Accounts: View the Changes to Store Equipment View the changes to Store Equipment  Original Cost is $8,000  Depreciation is -$800  Resulting in a Balance total of $7,200

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-51 Preferences QuickBooks may be customized by selecting different Preferences Many preferences are selected during the EasyStep Interview Some preferences are selected in addition to those marked during the interview The Preferences section has tabs where you may indicate “My Preferences” or “Company Preferences”  Not all Company Preferences or My Preferences will be discussed in the lecture; however, they are all discussed in the text

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-53 Accounting Preferences Company Preferences include:  May select the use of account numbers  Automatically assign general journal entry numbers  Provide warnings: Retained Earnings transactions 90 days in the past 30 days in the future  Closing Date and password My Preferences: None

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-54 Bills Preferences Company Preferences include:  Indicate number of days when bills are due after receipt  Select automatic use of discounts and credits My Preferences: None

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-55 Checking Preferences Many companies have more than one checking account and may have separate checking accounts for payroll purposes Checking preferences allow you to indicate which of your checking accounts to use for certain transactions My Preferences is a very important preference to select or you may end up using an inappropriate account for transactions My Preferences allows the selection of default accounts (normally checking or cash) to use when: Writing Checks Paying Bills Paying Sales Tax Making Deposits

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-56 Checking Preferences Company Preferences include:  Print account names on voucher  Change check date when non- cleared check is printed  Start with payee field on check  Warn about duplicate check numbers  Use autofill  Very important to select Checking as the default account to use when you: Open the Create paychecks form Open the Payroll Liabilities form

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-57 Desktop View Preferences My Preferences include:  View: One window or Multiple windows  Desktop: Save or not Show Home page when opening a company Show Getting Started Window Show Live Community  Color Scheme  Change Windows Settings for Display and Sounds

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-58 Desktop View Preferences Company Preferences  Select features shown on the Home Page Customers: –Invoices –Sales Receipts –Statements Vendors –Enter Bills –Pay Bills Estimates Sales Tax Sales Orders Inventory Payroll Time Tracking

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-59 Finance Charge Preferences My Preferences: None Company Preferences include:  Annual Interest Rate  Minimum Finance Charge  Grace Period  Finance Charge Account  Calculate charges from due date or billed date

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-60 General Preferences My Preferences include:  Pressing Enter to move between fields  Automatically open drop- down lists  Beep when recording a transaction  Automatically place a decimal point  Warn when editing or deleting transactions  Information regarding messages and ToolTips  Automatically recalling information  Default Date  Ask when custom items used in changing transactions

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-61 General Preferences Company Preferences show information for  Time format  Number of digits in the year  Saving transactions before printing

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-62 Integrated Applications Preferences My Preferences: None Company Preferences is used to manage all applications that interact with the current QuickBooks company file

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-63 Items and Inventory Preferences My Preferences: None Company Preferences include information for Purchase Orders and Inventory  Used to activate inventory and purchase orders  Warn about duplicate purchase order numbers  Warn if not enough inventory quantity on hand Enable units of Measure; such as, pounds, boxes, inches, etc.

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-65 Multiple Currencies My Preferences: None Company Preferences allow you to use more than one currency If you use more than one currency, you must select your “Home” currency Once selected, you may not turn off Multiple Currencies

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-66 Payments Use Intuit Payment Processing with Intuit Payment Solutions for:  Credit Card Processing  Paper Check Processing  eCheck Processing Receive Payments selections  Automatically apply payments  Automatically calculate payments  Use Undeposited Funds as a default deposit to account Invoice Payments allow you to:  Show payment link on emailed and printed invoices  This is deselected in the text because we do not subscribe to the Intuit PaymentNetwork.

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-67 Payroll & Employees Preferences My Preferences: None Indicate QuickBooks Payroll Features Pay Stub and Voucher Printing preferences Workers Compensation preferences Sick and Vacation preferences Display Employee List by First Name or Last Name Indicate Employee Defaults

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-69 Reminders Preferences Reminders List is a screen that appears to remind you of tasks that need to be performed The only choice on My Preferences is whether or not to display Reminders when opening the company

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-70 Reminders Preferences Company Preferences: indicate items to include as Reminders:  Printing: Checks and Paychecks Invoices and Credit Memos Sales Receipts and Sales Orders Purchase Orders  Overdue Invoices  Inventory to reorder  Bills to Pay  Money to Deposit  To Do Notes

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-71 Reports & Graphs Preferences My Preferences include when to refresh a report or graph  The screen shot shows the change to Refresh automatically, which is used in the text Indicate choice for graphs  Drawn in 2D  Use patterns

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-72 Reports & Graphs Preferences Company Preferences Select:  Report Basis: Accrual or Cash  How accounts are displayed in reports  Aging of Reports  Statement of Cash Flows  Customize Report Format, which may include Date Prepared, Time Prepared, and Report Basis

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-73 Sales & Customers Preferences My Preferences allows the selection of  Adding available time or costs to invoices for a job  Show Payment Toolbar on Receive Payment and Sales Receipt forms (Shown deselected)

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-74 Sales & Customers Preferences Company Preferences indicate:  Shipping Methods  Warning about duplicate invoice numbers  Select template for packing slips  Use of Price Levels (different prices for different types of customers)

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-75 Sales Tax Preferences My Preferences: None Company Preferences:  Indicate if sales tax is charged  Set up sales tax items and select the most common sales tax item (State Tax)  Assign Sales Tax Codes  Indicate when you owe sales tax and when you pay sales tax

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-76 Search Preferences My Preferences: None Used to indicate how and when to update search information Tell QuickBooks how may search results per page

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-77 Send Forms Preferences My Preferences allows “To be e-mailed” to be selected if a customer’s preferred send method is e-mail Indicate whether to send e-mail using Web Mail or QuickBooks E-mail Add E-Mail Ids

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-78 Send Forms Preferences Company Preferences allows you to change the default e-mail message for business forms The screen shot illustrates the standard message for an invoice

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-79 Service Connection Preferences My Preferences allows the selection of Settings:  Saving a file whenever Web Connect data is downloaded  Indicate whether to close QuickBooks after Web Connect is completed Web Connect is used as a Web browser to connect to the financial institution Before you can add online banking or online vendor payment to a QuickBooks account, you need information from your financial institution. You would go through Web Connect to obtain it

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-80 Service Connection Preferences Company Preferences include:  Indicate how you want to handle your connection to QuickBooks services Automatically connect with or without a password Allow background downloading of service messages

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-81 Spelling Preferences No Company Preferences My Preferences include:  When to check spelling: Always check before printing, saving, or sending forms  Select whether to Ignore words with Internet Addresses Numbers Capitalized first letter All uppercase letters Mixed case words  Displays and allows deletions of words that have been added to the dictionary

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-82 Tax: 1099 Preferences My Preferences: None For each 1099 Category you report to the IRS, you can select:  QuickBooks account (from the QuickBooks chart of accounts) you use to track 1099 vendor payments  The minimum (threshold) amount you must report to the IRS

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-83 Time & Expenses Preferences My Preferences: None Company preferences indicate whether or not you keep track of time Time tracking is useful if you bill by the hour Invoice options may be indicated  Track reimbursed expenses as income  Default Markup Percentage  Default Markup Account

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-84 Item List Contains information about all of the items sold or services performed by the business Items used to track services performed and products sold for income are created Used in conjunction with the income accounts of the company Items were added during QuickBooks Setup but will need to be customized New items may be added individually to the Item List

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-85 Edit Items: Service Item If QuickBooks Setup was used to create the Item List, individual information will need to be added to each item.  This includes adding Tax Codes

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-86 Delete an Item During QuickBooks Setup, items were added to the list by QuickBooks These items need to be deleted Open the Item List and click Consignment Item Click the Item button Click Delete Item

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-87 Enter Sales Tax Information Item List shows State Tax as 0.00% Edit State Tax:  Change the name and description to: CA Sales Tax  Enter the Tax Rate: 9.25%

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-89 Customer List Contains a list of all customers added during the QuickBooks Setup All customers need to have their individual terms, tax items, and credit limits added If customers were not entered during QuickBooks Setup, they may be added to the customer list at any time

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-90 Add Information to Individual Customers Open the Customer Center and double-click Day Care Center to Edit Complete Additional Info tab  Terms: Net 30  Tax Item: CA Sales Tax

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-93 Vendor List Contains a list of all vendors added during the QuickBooks Setup All vendors need to have their individual terms and credit limits added If vendors were not entered during QuickBooks Setup, they may be added to the vendor list at any time

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-94 Add Information to Individual Vendors Open the Vendor Center and double- click Disks Galore Complete Additional Info tab:  Terms: 2% 10 Net 30  Credit Limit: 10,000.00 Click OK to save the changes

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-96 Payroll To set up payroll, you:  Select your payroll options (Manual processing selection was presented in Chapter 8)  Complete the Payroll Setup Interview to: Add payroll defaults Customize information for employees added during QuickBooks Setup Add any additional employees Enter tax and year-to-date information

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-97 Payroll Setup Select Manual payroll calculations To access the Payroll Setup Interview:  Click Employees on the Menu bar  Click Payroll Setup

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-99 Payroll Setup Interview: Introduction Six sections to the Payroll Setup Interview:  Introduction  Company Setup  Employee Setup  Taxes  Year-to-Date Payrolls  Finishing Up Read the Introduction screen, click Continue

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-100 Payroll Setup Interview: Company Setup The Company Setup for payroll is used to:  Identify and setup your methods of compensation  Setup benefits offered by your company  Provide for additions and deductions your employees might have

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-101 Payroll Setup Interview: Company Setup Select methods of compensation  Salary  Hourly wage and overtime  Click Bonus to deselect You may also select  Commission  Tips  Piecework Click Finish

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-103 Payroll Setup Interview: Company Setup Setup employee benefits:  Health, dental, or other insurance  Retirement  Vacation and sick leave  Miscellaneous

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-105 Payroll Setup Interview: Company Setup To select how health insurance is paid  Click Employee pays for all of it  Click Payment is deducted after taxes

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-106 Payee (Vendor): Health Insurance, Inc. Select I don’t need a regular payment schedule for this item Click Next Repeat for dental insurance Click Finish Payroll Setup Interview: Company Setup

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-107 Payroll Setup Interview: Company Setup Review your Insurance Benefits list Click Continue Your Name Movies & More does not provide retirement benefits Click Finish and Continue

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-108 Payroll Setup Interview: Company Setup Paid time off, click:  Sick  Vacation Click Finish and then click Continue Review your Paid Time Off List

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-110 Payroll Setup Interview: Employees Setup Add information for individual employees Indicate:  Personal information  Hire date  Social Security numbers  Pay rate  Payments and deductions  Sick and vacation balances  Each employees W-4 form showing tax exemptions  Direct deposit information, if applicable  Termination date (if applicable

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-111 Payroll Setup Interview: Employees Setup Employees were added during QuickBooks Startup Review the Employee List and note that information is missing Additional information for each employee needs to be added

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-112 Payroll Setup Interview: Employees Setup Click Alice Brooks to select Click the Edit button Add her missing information:  City: San Diego  State: CA  Zip: 92101

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-113 Payroll Setup Interview: Employees Setup Enter Hiring Information:  Type: Regular  Social Security #: 100-55-2525  Hire Date: 04/23/1996  Birth Date: 12/28/1949  Gender: Female

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-116 Payroll Setup Interview: Employees Setup Provide information for benefits:  Dental Insurance: Amount: $10.00 Annual Limit: $120.00  Health Insurance: Amount: $50.00 Annual Limit: $600.00

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-117 Payroll Setup Interview: Employees Setup Indicate sick time:  40:00 hours per year  Unused sick hours have an accrual limit with maximum of 120 hours  Alice earns time off currently  Current balances: 20:00 Note: the computer date is shown even though the company information was created for 01/01/11. After the setup is complete, QuickBooks may display the hours as 3:20 per paycheck Repeat for vacation time

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-118 Payroll Setup Interview: Employees Setup There is no direct deposit for Alice, click Next Indicate state for withholding and unemployment tax: CA Alice did not live or work in another state

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-119 Payroll Setup Interview: Employees Setup Enter federal tax information:  Filing Status: Single  Allowances: 0  Subject to: Medicare Social Security Federal Unemployment

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-120 Payroll Setup Interview: Employees Setup Enter CA state taxes:  Filing Status: Single  Allowances: 0  Subject to: CA- Unemployment CA- Employment Training Tax CA-Disability  Click Next

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-121 Payroll Setup Interview: Employees Setup Setup the Wage Plan Information for Alice Brooks Since she is covered under a State Plan for both Unemployment Insurance and Disability Insurance, select plan S Click Finish

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-122 Payroll Setup Interview: Taxes Setup Set up payroll taxes for:  Federal  State  Local Information needed:  State tax ID number  Tax agencies you pay  Local payroll taxes you pay

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-124 Payroll Setup Interview: Taxes Setup State taxes for California are displayed CA- Unemployment needs to have the rate entered Click CA- Unemployment Click Edit

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-125 Payroll Setup Interview: Taxes Setup Review the first screen shown and click Next Enter the CA- Unemployment Company Rate: 3.4% Click Finish

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-127 Payroll Setup Interview: Taxes Setup Edit the information for Federal 940  Verify the Payee: United States Treasury  Select Payment Frequency: Quarterly Repeat for Federal 941/944

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-128 Payroll Setup Interview: Taxes Setup Edit the set up the payments for California Unemployment Insurance and Employment Training Tax:  Payee: Employment Development Department  Employer Acct. No. 999-9999-9  Payment Frequency: Quarterly Repeat for California Withholding and Disability Insurance payments Click Finish

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-130 Payroll Setup: Year-to-Date Payrolls The Year-to-Date Payrolls is completed to enter year-to-date amounts for employees and to identify liability payments  Note that you may see anywhere from one to four quarters for payroll history. This is determined by the date of your computer

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-131 Payroll Setup Interview—Determine if Payroll History Setup is Required Click No to answer the question:  Has your company issued paychecks this year?  Depending on your computer date, your payroll history may show all four quarters

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-132 Payroll Setup Interview—Finishing Up Click Go to Payroll Center Without a paid payroll service, you will go to the Employee Center when finished with Payroll Setup

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-133 Record Adjusting Entries When the EasyStep Interview is completed, all existing balances are placed into the Uncategorized Income and Uncategorized Expenses accounts so that the amounts listed will not be interpreted as income or expenses for the current period Receivables actually reflect earnings for the previous year and should not appear as income for 2011 Expenses reflect expenses for the previous year and should not appear as expenses for 2011

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-134 Record Adjusting Entries Transfer Amount of Uncategorized Income and Expenses to Capital account Prepare Profit & Loss Statement for January 1, 2011

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-135 Record Adjusting Entries Record Journal Entries:  Close Uncategorized Income and transfer to Capital: Date: 01/01/11 Debit: Uncategorized Income: 2,950.00 Credit: Your Name, Capital: 2,950.00  Close Uncategorized Expenses and transfer to Capital: Date: 01/01/11 Debit: Your Name, Capital: 5,000.00 Credit: Uncategorized Expenses: 5,000.00

©2012 Pearson Education, Inc. publishing as Prentice Hall 9-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 9—LECTURE CREATING A COMPANY IN QUICKBOOKS.

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©2012 Pearson Education, Inc. publishing as Prentice Hall 9-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 9—LECTURE CREATING A COMPANY IN QUICKBOOKS.

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Presentation on theme: "©2012 Pearson Education, Inc. publishing as Prentice Hall 9-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 9—LECTURE CREATING A COMPANY IN QUICKBOOKS."— Presentation transcript:

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