QB CH 3
QB CH 3
QB CH 3
BANKING
SCENARIO
The next morning as you pass the open door of Mr.
Castle's office, you notice he is looking at the financial
statements you prepared. You try to slip past his door
unnoticed, but you take only a few steps when you hear
him curtly call your name.
You turn to see Mr. Castle charging toward you with
documents in hand.
I need you to keep an eye on the bank accounts. Cash
is the lifeblood of a business. A business cant survive if
it doesn't have enough cash flowing through its veins to
pay its bills. So it's very important that someone keep
an eye on the cash in our bank accountsthe cash
inflows into the accounts and the cash outflows from
the accounts. That is your job now.
Handing you more documents, Mr. Castle continues,
We fell behind on our bank reconciliations. Here is
last months bank statement that needs to be
reconciled.
After you master QuickBooks bank reconciliations, you
send Mr. Castle the following quick text.
Chapter 3
Banking 3.3
INTRODUCTION
In Chapter 3, you will learn about using QuickBooks to perform
banking tasks, such as making deposits, writing checks, reconciling
bank statements, and online banking.
Start QuickBooks by clicking on the QuickBooks desktop icon or
click Start > Programs > QuickBooks > QuickBooks Premier
Accountant Edition 2013.
WORKFLOW
Use the Workflow approach if you are using the same computer and
the same .QBW file from the prior chapter. Just as in a business, since
you are using the same computer, you can continue to use the same
.QBW file. Although you will make backups, you will not need to use
the backup files unless your .QBW file fails.
Step 1:
Step 2:
Step 2:
BANKING NAVIGATION
If necessary, click the Home icon in the Icon bar to display the Home
page.
Print checks.
Chapter 3
Banking 3.5
Step 2:
Step 3:
Payments (checks)
Deposits
Balance
If necessary,
scroll up or
down to locate
the 11/15/2017
Sergeant
Insurance entry
or use the Go To
feature.
Split indicates
that a payment is
split between
two or more
accounts.
Chapter 3
Banking 3.7
The $675
payment is
split
between
three
different
expense
accounts.
Step 5:
Step 2:
Step 3:
Step 5:
You can record deposits and checks directly in the Check Register or
use the Make Deposits window and the Write Checks window.
Chapter 3
Banking 3.9
MAKE DEPOSITS
Deposits are additions to the Checking account. Any cash coming
into a business should be recorded as a deposit to one of the
companys accounts.
QuickBooks classifies deposits into two types:
1. Payments from customers.
2. Nonsales receipts (deposits other than customer payments) such
as:
! Cash received from loans.
! Investments from owners.
! Interest earned.
! Other income, such as rental income.
Payments from customers are entered using the Customers section of
the Home page. For more information about recording payments
from customers, see Chapter 4: Customers and Sales. Deposits other
than customer payments are recorded using the Banking section of
the Home page.
Mr. Castle wants to invest an additional $72,000 in the business by
depositing his $72,000 check in Rock Castle Construction's Checking
account.
To record nonsales receipts (a deposit other than a customer
payment):
Step 1:
Step 2:
Step 3:
Chapter 3
Banking 3.11
Cash back
can be used
to keep
cash out for
Petty Cash.
However, a
better
approach is
to deposit
the full
amount and
then write a
check for
Petty Cash.
Select the
account from
the drop-down
list or type
30100 and
QuickBooks
automatically
completes the
account title.
Step 4:
Click in the From Account column. From the dropdown list of accounts, select 30100 Capital Stock.
Press Tab.
Chapter 3
Banking 3.13
WRITE CHECKS
A business needs to track all cash paid out of the companys
checking account. Examples of payments include purchases of
inventory, office supplies, employee salaries, rent payments, and
insurance payments.
Supporting documents (source documents) for payments include
canceled checks, receipts, and paid invoices. These source
documents provide proof that the transaction occurred; therefore,
source documents should be kept on file for tax purposes.
QuickBooks provides two ways to pay bills:
One-step approach to bill paying:
" Record and pay the bill at the same time. When using this
approach, the bill is paid when it is received.
Two-step approach to bill paying:
" Record the bill when it is received.
# Pay the bill later when it is due.
QuickBooks:
1. Records an expense (debit).
2. Reduces the Checking account (credit).
Covered in
Chapter 5:
Vendors,
Purchases,
and
Inventory.
QuickBooks:
1. Records an expense (debit).
2. Records an obligation (liability)
to pay later (credit).
Chapter 3
Banking 3.15
In this chapter, you will use the Write Checks window (One-Step
Approach) to pay a computer repair service bill for Rock Castle
Construction.
To use the Write Checks window to pay bills:
Step 1:
QuickBooks
automatically
completes the
address using
address
information from
the Vendor List.
If you use
handwritten and
computerprinted checks,
to keep check
numbers in
sequence,
set up two
subaccounts for
the Checking
account:
1. Computerprinted checks
subaccount.
2. Handwritten
checks
subaccount.
Leave Print
Later
unchecked if
you handwrite
a check and
just need to
record the
check in
QuickBooks,
but not print
the check.
Step 2:
Step 3:
If you use more
than one
Checking
account, change
the check color:
1. Edit menu.
2. Change
Account
Color.
Click Print.
Chapter 3
Step 5:
Banking 3.17
PRINT JOURNAL
QuickBooks uses two different ways to enter information:
1. Onscreen forms, such as the onscreen check you just completed.
2. An onscreen Journal using debits and credits.
When you enter information into an onscreen form, QuickBooks
automatically converts that information into a journal entry with
debits and credits.
To view the journal entry for the check that you just recorded:
Step 1:
Click the Reports icon in the Icon bar to open the Report
Center window.
Step 2:
Step 3:
Select: Journal.
Step 4:
Step 5:
Select Run.
Step 6:
Step 7:
Chapter 3
Banking 3.19
The five different types of accounts are listed below along with the
effects that debits and credits have on them.!!
Account Type
Asset
Liability
Equity
Revenues (Income)
Expenses
Debit/Credit
Debit
Credit
Credit
Credit
Debit
Effect on Balance
Increase
Increase
Increase
Increase
Increase
Account
Checking
Capital Stock
Step 8:
Account
Type
Asset
Equity
Debit/
Credit
Debit
Credit
Effect on
Balance
Increase
Increase
check
repair
of the
credits
Step 9:
2.
Chapter 3
Banking 3.21
The following bank statement lists the deposits and checks for Rock
Castle Construction according to the banks records as of November 20,
2017.
BANK STATEMENT
11-20-2017
Checking
Previous Balance
+ Deposits
- Checks
- Service Charge
+ Interest Paid
Ending Balance
10-20-2017
0
4
11-20-2017
$71,452.58
0.00
4,161.56
10.00
0.00
$67,281.02
Deposits
Date
Date
10-31-2017
10-31-2017
11-14-2017
11-19-2017
Amount
0.00
Checks Paid
No.
433
436
451
460
Amount
712.56
24.00
3,200.00
225.00
Chapter 3
Banking 3.23
Step 2:
Step 3:
Step 4:
Step 5:
Step 6:
Step 7:
Click Continue.
Click on
deposits
and checks
that have
cleared the
bank and
are listed on
the bank
statement.
If you use
Online
Banking,
click the
Matched
button to
reconcile
online
transactions
and mark
online
transactions
as cleared.
Difference
equals 0.00
when the
bank
statement is
reconciled.
Step 8:
Step 9:
Step 10: After marking all deposits and checks that appear on the
bank statement, compare the Ending Balance and the
Cleared Balance at the bottom of the Reconcile window.
The Difference amount in the lower right corner of the Reconcile
window should equal $0.00.
Chapter 3
Banking 3.25
Step 12: Highlight the items on the bank reconciliation report that
you marked as cleared for the November bank
reconciliation.
You have now completed the November bank reconciliation for
Rock Castle Construction.
ONLINE BANKING
QuickBooks offers an online banking feature so that you can conduct
banking transactions online using the Internet. View online banking
features through the Banking menu shown next.
The steps for using online banking with QuickBooks are:
1. Set up account for online banking services.
2. Select a participating financial institution and set up an
account.
Step 2:
Step 3:
Chapter 3
Banking 3.27
Step 4:
Step 5:
Step 6:
Step 7:
Chapter 3
Banking 3.29
Step 2:
Select Purchase/Charge.
Step 3:
Step 4:
Step 5:
Step 6:
Step 7:
Step 8:
To
download
and match
credit card
charges,
select
Download
Card
Charges.
To pay a
credit card
bill, select
Ready to
pay a credit
card bill?
Step 9:
SAVE CHAPTER 3
Save a backup of your Chapter 3 file using the file name: YourName
Chapter 3 Backup.QBB. See Appendix B: Back Up & Restore
QuickBooks Files for instructions.
WORKFLOW
If you are using the Workflow approach, leave your .QBW file open
and proceed directly to Exercise 3.1.
QUICKBOOKS VIDEOS
Watch the QuickBooks videos at www.myquickbooks.me to view
QuickBooks features.
GO PAPERLESS!
Go Paperless using Excel templates. See Appendix D: Go Paperless
with QuickBooks for instructions about how to save your
QuickBooks
documents
and
reports
electronically.
Visit
www.myquickbooks.me to download the Excel templates.
Chapter 3
Banking 3.31
LEARNING ACTIVITIES
Important: Ask your instructor whether you should complete the
following assignments by printing reports or exporting them to Excel
(see Appendix D: Go Paperless with QuickBooks).
EXERCISE 3.1:
MAKE DEPOSIT, VOID CHECK, AND WRITE CHECK
SCENARIO
As you glance up from your work, you notice Mr. Castle charging
past your cubicle with more documents in hand. He tosses a hefty
stack of papers into your creaking inbox. "Here is another deposit
to record. Also, Washuta called to say they did not receive the
check we sent them. You will need to void that checkI believe it
was check no. 470. I have already called the bank and stopped
payment. Also, here are more bills to pay."
! If your QBW file is not already open, open it by selecting File >
Open Previous Company. Select your .QBW file.
Step 2:
Step 2:
Next, search the Check Register for Check No. 470 using
the Go To feature. Click the Go to button in the upper left
corner of the Check Register window.
Step 3:
In the Go To window:
Step 4:
Step 5:
Step 6:
Step 7:
Chapter 3
Banking 3.33
Step 2:
Step 3:
Step 4:
When asked if you are sure you want to record the voided
check, click Yes.
Step 5:
Step 6:
Step 7:
Check No.
Date
12/15/2017
Vendor
Amount
$45.00
Expense Account
Check No.
Date
12/15/2017
Vendor
Amount
$200.00
Expense Account
Step 2:
Click OK.
Click Print.
WORKFLOW
If you are proceeding to Exercise 3.2 and using the same computer,
you can leave your .QBW file open and use it for Exercise 3.2.
Chapter 3
Banking 3.35
Step 2:
Step 3:
Step 4:
Step 5:
$58,413.56
$15,996.28
$109,688.30
$109,688.30
$
0.00
After you click Reconcile Now, you can return to this Bank Reconciliation by selecting
Reports menu > Banking > Previous Reconciliation.
Another way to change the status of a cleared item:
1. Display the Check Register.
2. Click the Cleared Status column until the appropriate status (cleared or uncleared)
appears.
Chapter 3
BANK STATEMENT
Rock Castle Construction
12-20-2017
Previous Balance
11-20-2017
+ Deposits
10
- Checks
12
- Service Charge
1
+ Interest Paid
Ending Balance
12-20-2017
Deposits
Date
11-30-2017
12-02-2017
12-03-2017
12-05-2017
12-05-2017
12-10-2017
12-10-2017
12-12-2017
12-14-2017
12-15-2017
Banking 3.37
Checking Account
$67,281.02
58,413.56
15,996.28
10.00
0.00
$109,688.30
Amount
4,135.50
4,706.01
1,200.00
5,000.00
25,000.00
102.65
1,000.00
4,936.12
4,700.00
7,633.28
Checks Paid
Date
No.
11-28-2017
464
11-28-2017
465
11-28-2017
466
11-28-2017
467
11-28-2017
468
11-28-2017
469
11-30-2017
471
11-30-2017
472
11-30-2017
473
11-30-2017
474
11-30-2017
475
12-01-2017
476
Thank you for banking with us!
Amount
300.00
500.00
600.00
800.00
6,790.00
2,000.00
24.00
656.23
686.00
218.00
2,710.90
711.15
WORKFLOW
If you are using the Workflow approach, you can leave your .QBW
file open and use it for the next chapter.
The Website
listed is
subject to
change.
Step 1:
Go to www.quickbooks.com.
Step 2:
Step 3:
Step 2:
Chapter 3
Banking 3.39
Download Go Paperless
Excel templates at
www.myquickbooks.me.
EXERCISE 3.2
$ * Task 2: Previous Bank Statement Report
$ * Task 4: Bank Reconciliation Report
EXERCISE 3.3
QuickBooks Preprinted Forms
$
$
EXERCISE 3.4
Online Financial Security Printout
Use either your QuickBooks company file (.QBW file) or backup file (.QBB
file) that you completed for Project 2. (If you have issues with your
QuickBooks file, contact your instructor.) Update Company Name to:
YourName Project 3 Larrys Landscaping.
2.
Download the Go Paperless Reports Excel template for Chapter 3. Save the
Excel file using the file name: YourFirstName LastName CH3 REPORTS.
3.
From
Account
Amount
Cash/Check No.
12/16/2017
Larry Wadford
3020 Owners
Contributions
12/16/2017
$270.00
Cash
$580.00
$360.00
Cash
$127.00
12/17/2017
12/18/2017
12/18/2017
$1,000.00
4.
Using your saved Reports Excel template for Chapter 3, export to Excel the
Deposit Detail report for December 16 through 18, 2017. (Hint: Report Center
> Banking.)
5.
To
Account
Amount
Check No.
12/16/2017
Computer Services by DJ
$180.00
1464
12/17/2017
$127.00
1465
12/17/2017
7430 Professional
Design Fees
$360.00
1466
Chapter 3
12/18/2017
12/18/2017
Banking 3.41
$250.00
1467
$800.00
1468
6.
Export to Excel the Check Detail report for December 16 through 18, 2017.
(Hint: Report Center > Banking)
7.
BANK STATEMENT
11-30-2017
Checking
Larrys Landscaping
1045 Main Street
Bayshore, CA 94326
Beginning Balance
+ Deposits
- Checks
- Service Charge
+ Interest Paid
Ending Balance
10-30-2017
2
8
11-30-2017
$238,625.29
5,775.80
2,865.51
25.00
0.00
$241,510.58
Deposits
Date
Amount
11-25-2017
5,000.00
11-30-2017
775.80
Checks Paid
Date
10-22-2017
10-28-2017
11-22-2017
11-28-2017
11-29-2017
11-30-2017
11-30-2017
11-30-2017
No.
1459
1461
1460
1462
1112
1113
1114
1115
Amount
244.13
550.00
244.13
550.00
177.25
125.00
375.00
600.00
8.
9.
Export to Excel the bank reconciliation detail report. Highlight the checks and
deposits cleared for the November bank statement.
10. Export to Excel the Journal report for December 16 through 18, 2017.
11. Mark the reports completed on the 3 REPORTS sheet. Save your Excel file.
12. Save a .QBB backup of your work.
$
$
$
$
$
*
*
*
*
*
PROJECT 3
Deposit Detail
Check Detail
Bank Reconciliation Summary
Bank Reconciliation Detail
Journal
3.2
CHAPTER 3
LEARNING OBJECTIVES
In Chapter 3, you will learn about the following
QuickBooks features:
View and Print Check Register............................. 3.5
Make Deposits ..................................................... 3.9
Write Checks ..................................................... 3.13
Print Journal 3.17
Reconcile Bank Statements ................................ 3.20
Online Banking.................................................. 3.25
Enter Credit Card Charges.................................. 3.29