BUSA 100 – Fundamentals of Accounting – Ms. Schmidt

Mini Practice Set 2 – Using QuickBooks

 

 

The Mini Practice Set 2 is at the end of Chapter 13 on pages 496 – 500.  You will be working on the following instructions:

 

Downloading Instructions

·   Go to my website at:  www.cerritos.edu/dschmidt

·   Go to:  Course Materials à BUSA 100 à Scroll down to Chapter 13 à Right click “Bargain Buys QuickBooks File” à Save Target As à Choose your flash drive.

·   Next, download and save the 10-column worksheet by following the same steps.

·   Close the internet when the files are saved.

 

Starting balances have already been entered for you. Vendors and customers are set up.  DO NOT REMOVE any journal entries that are pre-existing.  They were put there for a reason. The major task for this assignment is  to RECORD JOURNAL ENTRIES for this company.  Since this is the second project of this nature, instructions are minimal. Follow the same accounting cycle as we did with the first one. 

 

Opening the QuickBooks file

From the Desktop, double click on the QuickBooks Pro 2007 icon.  You will be offered a choice of options by the program.  Choose the first menu item from the left that says “Open or restore an existing company” à Open a company file à Next à locate your flash drive à double click Bargain Buys.QBW

 

Customize Your Company

With the “Bargain Buys.QBW” file open, go to the “Company” menu item and choose “Company Information.”  Put your last name in front of  Bargain Buys……….  For example, after completing this step, my file name would read “Schmidt’s Bargain Buys.”  This will insure your name is on your printouts. 

 

 

Recording Journal Entries

Do this by clicking on Company à Make General Journal Entries

§      For each transaction, change the date on QuickBooks to match the textbook. 

§      Under “Account,” choose the appropriate account by clicking on the empty line to activate it, then click on the drop-down arrow to select an account. 

§      Enter the amount in the “Debit” or “Credit” column.

§      Click on the “Save & New” box at the bottom to enter the next transaction.

§      Notes:  For transactions involving Accounts Receivable or Accounts Payable, choose the appropriate customer or vendor under “Name.”

 

Things to note while journalizing transactions:

 

#3. Record the transaction for October in the journal.  The transactions are on pages 498 – 499.

      Note:  There are two errors in the transactions. 

1 – The third transaction for Oct 2 should read, “….in payment of Invoice 9387 ($7,830.00) …” not $7,880.00.

2 – The second transaction for Oct 4 should read, “…in payment of Invoice 5671 ($8770) …” not $7,830.

 

# 8 through 10:  Completing the 10-column worksheet. (This Excel worksheet should have been downloaded from my website as well.)

      Note:  For #9, adjusting entry

Letter “b” should read, “On October 31….” not “On October 1…”

Letter “d” should read, “On October 1…” not “On October 31…”

 

 

#15:  Journalize adjusting entries.  Take the items from the worksheet that you completed above, and journalize the adjustments to get them into the system.  When this is done, you will need to print out the Income Statement and the Balance Sheet.

 

#16:  Journalize closing entries.  Enter the four closing entries discussed in Chapter 13.  When this is done, you will need to print out the Journal and the Post-Closing Trial Balance.

 

Notes on Printing the:          

                          Journal:  Reports à Accountant & Taxes à Journal.  Don’t forget to change the dates. 

                          Click the Print button.  When the print screen comes up, choose the option (in the bottom left hand corner) that says “fit report to one page wide.”  Don't forget to make sure you are hooked up to the network printer in the classroom.

 

                          Trial Balance:  Reports àAccountants & Taxes à Trial Balance

                          Income Statement:  Reports à Company & Financial à Profit & Loss Standard

                          Balance Sheet:  Reports à Company & Financial à Balance Sheet Standard

 

 

To Exit the Program

Go to File menu, then choose “Close Company.”  You then need to exit the program.  Go to File menu, then choose exit.  The new data you entered in QuickBooks is automatically saved upon exit.

 

 

What to Turn In

1)     Profit and Loss

2)     Balance Sheet

3)     10-column Worksheet

4)     Journal that includes the adjusting entries and the closing entries.

5)     Post Closing Trial Balance