quickbooks

Account Type *

Number

Account Name

Subaccount of…

Other Current Asset

11210

Inventory

1120 – Inventory Asset

Other Current Asset

13100

Prepaid Insurance

Other Current Asset

13200

Prepaid Advertising

Fixed Asset

15500

Vehicles

Fixed Asset

15550

Acc Depr - Vehicles

15500 - Vehicles

Fixed Asset

15850

Acc Depr - Landscaping Equip

15800 – Landscaping Equip

Accounts Payable

20000

Accounts Payable

Other Current Liability

23000

Interest Payable

Income

42000

Product Sales

Expense

60110

Fuel Expense

60100 – Auto and Truck Expenses

Expense

60120

Auto and Truck Insurance

60100 – Auto and Truck Expenses

Expense

60130

Auto and Truck Rep & Maint

60100 – Auto and Truck Expenses

Vendor Name

Address

Terms

Pre-fill Account

Hardaway Nursery

1580 Highway 287

Mansfield, TX 76063

Net 15

Comptroller of Public Accounts

Print on checks as:

State Comptroller

P. O. Box 149354

Austin, TX 78714

Net 15

Basic Insurance Company

789 E. South St.

Arlington, TX 76010

Due on receipt

13100 – Prepaid Insurance

Customer Name

Invoice/Bill To

Service Address

Karen Jennings

210 Where Ave., Arlington TX 76015

Same

Manny Gonzales

P. O. Box 157988, Arlington TX 76015

150 Any Street, Arlington TX 76015

Marshall Taylor

817 Nowhere Rd., Arlington TX 76015

Same

Vi Huynh

820 Nowhere Rd., Arlington TX 76015

Same

Item Name/Number

130

150

151

Desc on Purchase Trans

Vinca, mixed

Impatiens, mixed

Impatiens, pink

Desc on Sales Trans

Vinca, mixed

Impatiens, mixed

Impatiens, pink

Cost

7.92

9.00

9.00

Sales Price

16.00

18.00

18.00

COGS Account

50000 – Cost of Goods Sold

Taxable

P

P

P

Preferred Vendor

Hardaway Nursery

Income Account

42000 – Product Sales

Asset Account

11210 Inventory

Reorder Point

0

0

0

As of

01/01/2021

01/01/2021

01/01/2021

Item Name/ Number

Description

Rate

Taxable?

Account

200

Lawn maintenance contract

125.00

No

45700 – Maintenance Services

205

Lawn maintenance

40.00

No

45700 – Maintenance Services

210

Trimming labor

40.00

No

45700 – Maintenance Services

215

Pruning labor

40.00

No

45700 – Maintenance Services

220

Planting labor

45.00

No

44900 – Installation Services

225

Mulching labor

45.00

No

44900 – Installation Services

#

Date

Ref Number

Description

2

01/02

Check #101

Invoice #37801

Purchased fliers and business cards from Staples for $199.80. Select Write Checks from the Banking section of the Home Page. Click the Printer (Print this check later) icon at the bottom of the screen to change the No. To Print to a line where you con input the check number. Type 102 on the line. Change the Date if needed. Type in Staples in the Pay to the order of field and press tab. In the Name Not Found window that pops up, click on the Quick Add button. Select Vendor and click OK . Type 199.80 in the field beside the $. Type Invoice 37801 in the Memo field. On the Expenses tab at the bottom of the window, Select the Account 13200 – Prepaid Advertising . The amount should fill in automatically. Click Save and close the window to continue.

Please note: you expect the fliers and business cards to last for three months. You will need to make an adjusting entry at the end of the month.

3

01/02

Invoice #1001

One of your customers decided to go with a lawn maintenance contract. This means you will bill the customer, Manny Gonzales, $125.00 per month for 12 months. You need to generate the January invoice for this customer.

Select Create Invoices from the Home window. Select Manny Gonzales from the Customer:Job/Group drop-down list. Change your date to 01/02/2021 and the Invoice # to 10001 . Make sure the Print Later option is not checked.

Click in the box below the Item Code and select 200 . The rest of the invoice line item should be automatically filled in. Make sure that you have the following on the line: Quantity – 1; Item Code – 200; Description – Lawn maintenance contract; Rate – 125.00; Amount – 125.00; and Tax – Non. If not, your item is most likely not set up properly. You can change the items that have down arrows. If there is no down arrow, you will need to edit the item in the Lists option. In the Customer Message textbox, select Thank you for your business .

(Continued on next page)

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Date

Ref Number

Description

(Continued from previous page)

Click the Print icon at the top of the Create Invoices screen. Click Quick Add on Customer Message Not Found pop up box.

You will need to click the Print icon again. On the next window, click the PDF option at the bottom of the screen. Select Save as PDF from the list. You will need to save your file to the appropriate folder.

Once you verify that your invoice is correct and has been printed to an PDF, click Save . Close the window to continue.

4

01/02

Check #3957

Manny Gonzales paid $125.00 for the first month’s contract with check #3957.

Select Receive Payments from the Home Page. Select Manny Gonzales from the Customer:Job drop-down list. Enter 125.00 in the Amount textbox. Select Check as the Pmt Method and type 3957 in the Check # textbox. QuickBooks should select the invoice automatically. If it doesn’t, just click in the box below the check ().

At the bottom of the Customer Payment screen, the Amount Due and the Applied amounts should be 125.00. The unapplied amount should be 0.00. If not, go back and correct the payment before clicking the Save button. Close the window to continue.

5

01/02

Check #102, Invoice #9855

Purchased used landscaping equipment for $1,475 from Kurt Greene. This is a Banking > Write Checks task. Click the Printer icon at the bottom of the screen and input 102 in the No. field. Check the date and change if needed. You can set up this vendor by typing the vendor name in the Pay to the order of field and clicking on the Quick Add button in the Name Not Found window.

Make sure to select Vendor in the next window. Enter the invoice number in the Memo field. Select Account 15800 – Landscaping Equipment from the drop-down list.

Save and close the window.

You expect to use the equipment for 12 months and you will use straight-line depreciation with no residual value. Don’t forget to calculate and record depreciation at the end of the month.

6

01/02

Borrowed $4,000 from First Bank to purchase a truck to use in your business. To record the proceeds of the loan, first you will need to add a new account to the Chart of Accounts. Select Other Current Liability as the Account Type. Type 24000 in the Number field and Short Term Note Payable in the Account Name field. Click OK .

Select Record Deposits from the Banking section of the Home page. If the Select payments to deposit window opens, click Cancel to close the window.

(Continued on next page)

#

Date

Ref Number

Description

(Continued from previous page)

In the From Account column in the Deposit window, select the account you just created to track the loan. In the Amount column, enter 4000 . Click Save . At this point, you might want to click on Check Register in the Banking section and make sure all of your entries look correct.

7

01/02

Check #103, Invoice #854937264

Purchased a used truck from Harry’s Auto Sales for $5,000. Write a check for the $5,000 . Select account 15500 – Vehicles with the amount of 5,000 . Save & Close .

Additional information: The First Bank note is a 12-month note with a 5.25% interest rate. The first payment will be due on February 4, 2021.

Depreciate the truck using straight-line depreciation over 5 years with no residual value.

Don’t forget to make any adjusting entries at the end of the month.

8

01/03

Invoice #10002, #10003

Two more of your customers decided to go with a lawn maintenance contract: Henry O’Brien and Karen Jennings. This means that you will bill each one $125.00 per month for 12 months. You need to generate January invoices for these two customers.

Select Create Invoices from the Home window. Since both invoices will be the same, select the New Group icon at the top of the window. On the New Group window, type Lawn Maintenance Contract in the Group Name textbox. Hold down the control key and select the customers listed above. Click the Add >> button to add the customers to the billing group. Click the OK .

On the Invoice window, select the Lawn Maintenance Contract group from the Customer:Job/Group drop-down list. Click OK on the pop-up window. Change the date to 01/02/2021 if necessary. Make sure 10002 is in the Invoice No. textbox. Click in the box below the Item Code and select 200 . The rest of the invoice line item should be mostly filled in. Make sure that you have the following on the line: Quantity – 1; Item Code – 200; Description – Lawn maintenance contract; Rate – 125.00; Amount – 125.00; and Tax – not checked. If not, your item is most likely not set up properly. You can change the items that have down arrows. If there is not down arrow, you will need to edit the item in the Lists option. In the Customer Message textbox, select Thank you for your business . Click on the Print this invoice later icon at the bottom so it is not selected. Click Save . On the Review Invoices you should see two invoices to be created . Click both checkboxes in the To Print column. Click Create and then Print on the next window. On the Print Forms window, the two new invoices should be highlighted. Click Print and then Save as PDF . Close your window to continue.

9

01/03

Check #104, Invoice #9856

Purchased a utility trailer from Kurt Greene for $1,500. This is a Banking > Write Checks task. Enter the invoice number in the Memo field. Select Account 15800 – Landscaping Equipment from the drop-down list. Save.

(Continued on next page)

#

Date

Ref Number

Description

(Continued from previous page)

You expect to use the equipment for 24 months and you will use straight-line depreciation with no residual value. Don’t forget to calculate and record depreciation at the end of the month. For simplicity calculate depreciation for the entire month of January.

10

01/03

Check #105

Paid $100 to Self-Store for a storage unit. This is a Banking > Write Checks task. Type January rent in the Memo field. On the Expenses tab, select the Account 67100 – Rent Expense . Save .

11

01/05

Check #106

Purchased two insurance policies from Basic Insurance Company. Policy AE295873-93745 is a 12-month general liability policy for $250. Policy 47-GB6487264-15 is a 6-month vehicle insurance policy for $300. Write one check for both policies. Include information in the Memo field as appropriate. Account 13100 - Prepaid Insurance should be debited.

Don’t forget to make adjusting entries at the end of the month. For simplicity, calculate insurance expense for the entire month.

12

01/09

Received payments from customers Karen Jennings and Henry O’Brien. Click on Receive Payments in the customer section of the Home window.

In the Receive Payments window, select Karen Jennings from the Received From drop-down list. Type in 125 in the Amount field. Change the date to 01/09/2021 . From the Pmt. Method drop-down list, select Check and type in 1532 in the Check # textbox. Make sure the payment is applied to the open invoice and click the Save button at the bottom of the window.

Following the steps above enter the payment (Check #2703 for $125.00) received from Henry O’Brien. Click Save .

13

01/10

1039485632

Received your First Bank Visa credit card statement, dated 01/07/2021, for purchases of gasoline for your truck and gasoline and oil for your landscaping equipment.

Click on Enter Bills in the Vendors section of the Home window. In the Enter Bills window, type in First Bank Visa in the Vendor textbox. Click the Set Up button in the Vendor Not Found window. In the New Vendor window, type First Bank Card Services in the Vendor Name and Company Name textboxes. Use 01/01/2021 for the As of date. Use P.O. Box 104851, Arlington TX 76010 as the address.

Click Ok to continue entering the bill. Make sure the date is 01/07/2021 . The Ref No. is 1039485632 . The Amount is 70.94 . The Bill Due date is 01/28/2021 . On the Expenses tab select Account 60110 – Fuel Expense and change the Amount to 50.00 . On the second line select Account 51600 – Materials Cost and the Amount should be 20.94 . Save and close the window.

14

01/10

Record the deposit of all monies collected to date. This is a Record Deposits task which can be found under Banking in the Home window.

(Continued on next page)

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Date

Ref Number

Description

(Continued from previous page)

Click the Select All button at the bottom of the window to select the payments for deposit. You can also check each payment individually. The total amount of the deposit should be $375.00. Click OK. Make sure the date is correct and then click Save .

15

01/11

Sale No. 201

Performed lawn maintenance and pruning for Vi Huynh. Click on Create Sales Receipts in the Customers section of the Home window or select Customers > Enter Sales Receipts from the menu bar. Select Vi Huynh from the Customer:Job drop-down list. Change the date to 06/11/2021 and the Sale No. to 201 . Select Cash from the Payment Method drop-down list.

Under the Item, select 205 . Change the Qty to 1.5 . On the next line, select item 215 and change the Qty to .5 (1/2 hour). The Sales Receipt total should be $80.00. Make sure that Print this sales receipt later is not checked. Click Save .

16

01/13

Estimate #1

Create an estimate for Marshall Taylor for a job planting and mulching. Click on Estimates in the Customers section of the Home window. Select Marshall Taylor from the Customer:Job drop-down list. Change the Date to January 13 . Click the first line under Item and select 130 . Change the Qty to 5. Also select items 150 and 151 and change the quantities to 3 for each one. Select item 100 with a quantity of 10 . Make sure the Tax column shows Tax for all these items. If not, change the lines to Tax .

Select item 220 and change the quantity to 2.5 . Select item 225 and change the quantity to 2 . Make sure these two items are non-taxable. The estimate total should be $443.34. Save .

17

01/14

Marshall Taylor accepted your estimate so you will now create Purchase Orders.

Open the estimate you created in the previous transaction if not already open. Click the Create Purchase Order icon at the top of the screen. In the Create purchase order… window, select the For selected items… option and click OK .

P.O. #100001

P.O. #100002

Select items 130 , 150 , and 151 by clicking in the box below the .. Make sure the quantities are 5 , 3 , and 3 respectively. Click OK . The Purchase Order will open. Change the P.O. Number. to 100001 . Make sure the date is January 14 and the amount should be $93.60. Click Save .

Go back to the estimate and create a Purchase Order for the mulch using the steps above. Specify 20 as the quantity for item 100 . On the Purchase Order itself, separate the items ordered. 10 will be for Marshall Taylor in the Customer column. The remaining 10 should not have a customer indicated in the Customer column. The total amount of the P.O. should be $40.00. Click Save . Close the Customer Center .

18

01/14

25501

Receive the inventory ordered on P.O. 100002. This is a Receive Inventory task. When you click on Receive Inventory on the Home Page, you will need to select the Bill Received at the top of the window. (Continued on next page)

#

Date

Ref Number

Description

(Continued from previous page)

Select Arlington Landscape Supplies from the Vendor drop-down list. Click Yes in the Open POs Exist window. Check PO No. 10002 in the Open Purchase Orders window and click OK . Change the date to January 15 . Type 25501 in the Ref. No. textbox. Since you received all the inventory ordered, you will not need to make any changes to the quantity. Notice that the customer Marshall Taylor and the fact that these 10 of the items are billable to him is indicated in this receipt of inventory. Make sure to add another line for the remaining 10 items. Do not select a customer job. Click Save .

Quick check figures to make sure you are entering information correctly. Open the General Ledger which can be found on the menu under Reports > Accountant & Taxes > General Ledger . When the General Ledger opens change the dates From 01/01/2021 and To 01/15/2021. You should have the following balances in these select accounts: Checking – 5,550.20; Accounts Receivable – 0.00; Accounts Payable – (110.94), Maintenance Services – (455.00). If your balances are okay, this would be a good point to make another backup that you want to hold on to as a restore point.

19

01/16

6392

Picked up the inventory from Hardaway Nursery. This is a Receive Inventory task. Note: The bill with Ref No. 6392 and all items were received.

20

01/16

Invoice #10004

Performed the work for Marshall Taylor. Select Estimates from the Customers section of the Home Page. Select Create Invoice from the top of the window. In the Create Progress Invoices window, select Everything on the estimate option and click OK to continue. The Invoice No. should be 10004 .

Add Item 205 to the invoice with an Invoiced quantity of 1.5 . Verify that the invoice totals $503.34, make sure the date is correct and Save . (

21

01/17

Sale No. 202

Create a Sales Receipt for Vi Huynh for 1 hour of lawn maintenance and 1 hour of trimming. The total should be $80.00. Huynh pays you with cash.

22

01/17

P.O. #100003

Create a purchase order for 10 bags of mulch.

23

01/17

Record the deposit of all undeposited funds. This is a Record Deposits task. The total deposit should be $160.00.

24

01/18

Print a check to yourself for an owner’s draw of $500 . This is a Write Checks task. Check the Print this check later option at the bottom of the screen. Type your name in the Pay to the order of textbox. In the Name Not Found window, click the Quick Add button. Select the Other option in the Select Name Type window and click OK . Select your Owners Draw account ( 30800 ) in the Expenses tab. Click Save .

25

01/18

Pay all bills due before January 29. This is a Pay Bills task found in the Vendors section of the Home window. In the Pay Bills window, select the Due on or before option and select the date 01/29/2021 . You should have one bill showing for First Bank Card Services. Check the box beside the Date Due. Make sure the Payment Date is 01/18/2021 . The Payment Method should be Check, the To be printed option

(Continued on next page)

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Date

Ref Number

Description

(Continued from previous page)

should be selected and the Account should be 10100 – First Bank Checking Account. Click the OK button.

At this point, you should verify that the vendor(s) to be paid are showing in the Payment Summary window. You have two options available: Print Checks and OK. Since you also need to print the check to yourself, select OK for now.

26

01/18

Starting Check #10001

Select the Print Checks option under the Banking section of the Home window. Change the First Check Number to 10001 . Two checks totaling $570.94 should be ready to print. Cancel if your amounts don’t agree with this entry and make any needed changes. Click Print… if the amount is correct.

In the Print Checks window, you can print to a printer or Save as PDF. Everything seems to work better if you actually print. If you can only Save as PDF, then you can go back to the check itself and change the check number to the appropriate number. By default, QB for Mac defaults to check #1. You will have a Print Check – Confirmation window open. You have the chance at this point to change the check numbers to 10001 and 10002 (Note: you should print to properly record this check whether it is to a printer or to file.) Click Print when you have made your selections.

You will have to enter a filename and select where you want the file saved if you have chosen to print to the Microsoft XPS Document Writer or Adobe PDF. Click OK in the Print Checks – Confirmation window.

27

01/20

Received the inventory for P. O. 100003. One of the bags was damaged, so you only received 9 bags. This is a Receive Inventory task. Make sure Bill Received is not checked. Be sure to change the quantity received. Leave the blank for now.

After receiving the inventory, you want to make sure to close the purchase order as you would keep a backorder on your books if you didn’t. Open the purchase order by double-clicking on the Show PO button at the bottom of the Item Receipt. To close the PO, click the box on the first line in the CLSD column. When you Save, note that the Backordered quantity changes from 1 to 0.

28

01/20

25670

Received the invoice for PO 100003.

Select Enter Bills Against Inventory in the vendors section of the Home page. Select Arlington Landscape Supplies from the Vendor drop-down list. Click OK . Make sure the Bill Received checkbox is checked. Enter the Ref. No. before clicking Save .

29

01/20

Received Check 765 from Marshall Taylor for the full invoice amount.

30

01/23

Sale No. #203, 204, 205

Provided 1.5 hours of lawn maintenance for Vi Huynh and 2 hours of lawn maintenance for Marshall Taylor. If you have a Billable/ Time/Costs window that pops up, click OK . Both paid you with cash.

(Continued on next page)

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Date

Ref Number

Description

(Continued from previous page)

Acquired a new customer, Maura Amato. Her address is 818 Somewhere Rd., Arlington TX 76015. You performed 2 hours of lawn maintenance and 1 hour of trimming shrubbery. She paid you with check 1384.

31

01/24

Record the deposit of all monies collected since the last deposit.

32

01/24

Invoice #10005

Provided 1.5 hours of lawn maintenance, 1.25 hours of mulching labor, 10 bags of mulch, and 1 hours of trimming labor for Henry O’Brien. This is a Create Invoices task. You are also allowing Net 15 terms for Mr. O’Brien for this invoice. In the Name Information Changed window, select One time . *** Note that Henry O’Brien is one of your lawn maintenance contract customers and you have already charged him for lawn maintenance. ***

33

01/24

PO #100004

Create a purchase order for mulch. You have decided to keep 15 bags on hand. Select the Inventory Stock Status by Item or the Inventory Stock Status by Vendor to help you decide how much to order. This report can be found on the Menu under Reports > Inventory. When the report opens, you may have to change the From date to 01/01/2021 and the To date to 01/24/2021 .

34

01/24

First Check #10003

Make a check run using the Pay Bills option. Select bills due on or before 02/04/2021 . This time you want to select the Print Checks option in the Payment Summary window.

35

01/27

25702

Received the inventory ordered on the January 24 purchase order.

Quick check figures to make sure you are entering information correctly. Make sure to change your General Ledger dates From 01/01/2021 and To 01/27/2021 . Checking – 5,769.00; Accounts Receivable – 134.05; Accounts Payable – (30.00), Sales Tax Payable – (20.64).

36

01/29

Ref. No. 6510,

Sale No. 206

Maura Amato wants you to plant 2 flats of vinca and one flat of mixed impatiens in one of her flower beds. Create a purchase order for the plants, receive the goods, and create a Sales Receipt for the plants, 2 bags of mulch, 1.5 hours of planting labor and .5 hours mulching labor. (No need to create an estimate or sales order). Maura pays you with cash.

37

01/30

Deposit all undeposited monies. The general ledger account 12000 – Undeposited Funds should have a zero balance when you complete this step.

38

01/31

Check #10005

Write a check to yourself for an owner’s draw of $500 using the Write Checks option. Make sure the Print this check later is selected. Print the check. Click OK to continue.

(Note: if you have voided any checks, your starting number may be different. Once again, it is recommended to print to the Microsoft XPS Document Writer or to Adobe PDF.)

39

01/31

Backup your data before starting this step. Use the example bank statement provided on Canvas to assist you with this step. Carefully check your check amounts and deposit amounts against the provided bank statement and make any needed adjustments before starting the reconciliation.

(Continued on next page)

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Date

Ref Number

Description

(Continued from previous page)

Select Reconcile from the Banking section of the Home page. The Statement Date should be 01/31/2021 . The Ending Balance is 5,905.56 . The Service Charge is 15.00 , Date 01/31/2021 , and the Account should be 60400 – Bank Service Charges . Click OK .

All Deposits have cleared the bank, so check each one in the far left column. All checks except the last one you printed on January 30 should be Marked as clearing the bank. The Difference in the bottom right corner of the reconciliation window should be 0.00 . If not go back and check to make sure you entered the ending balance correctly and you have entered the service charge on the first screen (click Modify ) and that only outstanding items are unchecked.

If you still are not balanced, See Section 12 for additional troubleshooting ideas.

When the difference is 0.00, click Reconcile Now . An option to print or display the Reconciliation Detail will pop up. For now, display the reports.

40

01/31

Print the Working Trial Balance at this point (before any adjusting entries). QuickBooks for Mac does not have this option so you will have to use a work around.

Note : If I have approved your use of a QuickBooks version other than QuickBooks Accountant (including QuickBooks for Mac), you will not have the Accountant menu option. Please use the alternative below.

From the Menu bar select Reports > Accountant & Taxes > Trial Balance . In the right panel of the Trial Balance window, select the date range From 01/01/2021 to 01/31/2021 . You want to make sure that all accounts are showing, so make sure you select All from the Display Rows list toward the bottom of the right panel.

Click the Export icon at the top of the Trial Balance screen. Click Yes on the Alert window if it pops up. If another window pops up, click Delete . Excel should open with the Trial Balance. Make sure all accounts are showing. Change Trial Balance to Working Trial Balance at the top of the report. Make sure all data fits in your columns. Add two new columns to the right of the credit column; Adjustments and Ending Balance. See screenshot below.

*** Make sure you print the working trial balance to a PDF file before going further as you must include it in your submitted reports and you cannot print it correctly later.

(Continued on next page)

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Date

Ref Number

Description

(Continued from previous page)

If you fail to include it, you may receive a zero for this assignment. You may also want to print out a copy to use as you work through the adjusting entries.

Use the working trial balance to review all accounts and determine any adjusting entries needed. ***

Note : If I have approved your use of a QuickBooks version other than QuickBooks Accountant, you will not have the Accountant menu option. Please see me to discuss your alternatives.

It is a good idea to make a backup of your company before continuing.

01/31

Enter the end of month adjusting entries in the General Journal.

Make a separate entry for each adjustment and round all adjustments to the nearest even dollar amount (no cents).

Check the Adjusting Entry checkbox for all of your adjusting entries.

Since QuickBooks automatically numbers the general journal entries, you will not have to enter any reference numbers. The Memo field should adequately describe each entry.