Areola, Venus Kate C.

ACCY2

CHAPTER SUMMARY: CASH ORIENTED BUSINESS ACTIVITIES

FINANCING ACTIVITY - those that 3. Type the Check Number in the No. text
affect the entity's equity capital and box.
4. Type the Transaction date.
borrowing structure.
5. Type Name of the Bank in the Pay to the
Recording Cash-Oriented Financing Activities Order of section of the check, and then press
[Tab].
To record the deposit received:
6. Click Quick Add in the Name Not Found
1. Start the QuickBooks Accountant program. window.
2. Restore the Backup file from your Data 7. Select Other in the Select Name Type
Files CD or download it from the Internet. window and then click OK.
3. The newly restored .QBB file should now be 8. Type as the Check Amount, and then press
open. [Tab] until the cursor is in the account
4. Click the Record Deposits icon from the section of the check.
Banking section of the home page. The  Note: Near the bottom of the Write Checks
Make Deposits window appears. window are two tabs—one labeled Expenses
Note: QuickBooks Accountant has and one labeled Items. The Expenses tab is
automatically inserted the date of the somewhat misleading because you can type
transaction. or select any account to appear here,
5. Enter the information for deposit/purchase. including assets. On the other hand, you use
Be sure to enter the correct date. the Items tab to enter inventory acquisitions
6. Click Save & New to record the deposit. Do only. The main difference between them is
not close the Make Deposits window. that the Items tab has a column for quantities
purchased and the Expenses tab has a
To record the long-term loan from a Bank:
column for an account.
1. Select account of the Name of the Bank as 9. In the Expenses tab, select <Add New>
the Deposit To account. from the drop-down arrow list of accounts.
2. Type the deposit date. (Note: You may have to scroll up the list to
3. Type Name of the Bank in the received the top to find <Add New>.) An Add New
from text box and then press [Tab]. Account: Choose Account Type window
4. Click Quick Add in the Name Not Found should appear.
window. 10. Select Bank as the Account Type, and then
5. Click Other in the Select Name Type click Continue.
window and then click OK. 11. Type Short-Term/Long-Term
6. Select account Loan Payable as the From Investments as the Account Name.
account. 12. Click Save & Close to record this new
7. Type the amount of deposit and then click general ledger account.
Save & Close. 13. Click Save & Close to record this
transaction.
INVESTING ACTIVITY - involve the
acquisition and disposal of noncurrent assets To record the purchase of furniture and equipment:
and other investments. 1. Open the Write Checks window on the
home page. Type the Check Number (if it
Recording Cash-Oriented Investing Activities is not already there).
2. Type the date of purchase in the Write
To create a new general ledger account and record Checks window.
the purchase of money market funds: 3. Type Seller’s Name or the Store in the Pay
to the Order of section of the check, and
1. Click the Write Checks icon from the
then press [Tab].
Banking section of the home page. 4. Click Quick Add in the Name Not Found
2. Uncheck the Print Later check box if it is window.
checked. 5. Select Vendor in the Select Name Type
window and then click OK.
 6. Type the Check Amount, and then press  Credit/Debit Card – Type the Account
[Tab] three times or until the cursor is in the Number and Expiry Date.
account section of the check. 5. Click Save & New to record another
7. In the Expenses tab, select Furniture and
deposit.
Equipment from the dropdown arrow list of
accounts.
8. Click Save & Close to complete this process To record cash collected on account:
or to enter another purchase.
1. Click the Receive Payments icon located in
the Customers section of the home page.
OPERATING ACTIVITY - are primarily
2. Select Customer’s Name or Company
derives from the principal revenue- Name from the Received From drop-down
producing activities of the entity. list.
Recording Cash-Oriented Operating Activities 3. Type amount received and the date received.
4. Select the Mode of Payment.
To create a new item form a Purchase Order:  Checks – Type the Check Number.
1. Click the Purchase Orders icon from the  Credit/Debit Card – Type the Account
Vendors section of the home page to open Number and Expiry Date.
the Create Purchase Orders window. 5. Click Save & Close to complete this
2. Select the Name of the Vendor/Store from transaction.
the Vendor drop-down list.
3. Type the Date and the Purchase Order To record cash sales with a receipt:
Number (You’ll need to add the date and 1. Click the Create Sales Receipts icon
the P.O No. if it’s needed in the preceding located in the Customers section of the
procedures) home page.
4. Select Name of the Item as the item, type 2. Select <Add New> from the Customer:Job
the Qty (quantity), and select the Name of drop-down list.
the Customer for which we are ordering the 3. Type the Customer Name and Company
boat. (You’ll need to add them as a new Name.
customer.) (You’ll also need to add an New 4. Type this Customer’s Bill To and Ship To
Item to the Item List if necessary) the address of the Customer.
5. Click on the Hide History arrow to hide this 5. Click OK to accept this new customer.
information and then click Save & New. 6. Type Date Of Sale and the Sale Number.
(Note: you may add the word if it’s not in 6. Select the Mode of Payment.
QBs dictionary)  Checks – Type the Check Number.
6. Type the Customer Name and Company  Credit/Debit Card – Type the Account
Name. Number and Expiry Date.
7. Type the Customer’s Address. 7. Select Name of the Item from the drop-
8. Click Copy >> to copy the Bill To address down list of items and type the Qty.
to the Ship To address section. Click OK to 8. Select State Tax from the Tax drop-down
accept. list if it is not already there.
9. Click OK to add this new customer. 9. Make sure the Print Later check box is
10. Click Save & Close to add this new unchecked.
purchase order. 10. Click on the Hide History arrow to hide this
information and then click Save & New to
To record the receipt of deposits/payments on future record another receipt. (Note: you may add
sales: the word if it’s not in QBs dictionary)
1. Click the Receive Payments icon located in 11. Click Save & Close. Click Yes to accept tax
the Customers section of the home page. change.
2. Select Customer’s Name from which the
deposit was received and type the amount To record cash deposits made to banks:
received. 1. Click the Record Deposits icon located in
3. Type the date. the Banking section of the home page.
4. Select Mode of Payment. 2. Put check next to the two dates, and then
 Checks – Type the Check Number. click OK.
 3. Type the Date Of Deposit. Note the default 6. Type the Invoice Date and the Invoice #.
Deposit To account should be the account of 7. Click the Hide History arrow, uncheck the
the Name of the Bank. Note also that the Print Later check box, and then complete
From Account is the Undeposited Funds the invoice by adding a Tax Code, a Bill To
account, which is where the payments were address, and a Ship To address.
recorded when first received and accounted 8. Click the Apply Credits button.
for. 9. Click Yes two times to accept the changes
4. Click Save & New. you made to the invoice and customer. An
5. Put check next to the two dates, and then Apply Credits window should appear.
click OK. 10. Click Done to apply this credit to the
6. Type the Date Of Deposit. balance owed on the invoice.
7. Click Save & New. 11. Click Save & Close to record this invoice.
8. Click next to the date to place a check next
to that payment, and then click OK. To record the payment and deposit of funds from
9. Type Date of Deposit. sales:
10. Click Save & Close.
1. Click the Receive Payments icon located in
the Customers section of the home page.
To record the receipt and payment of inventory:
2. Select Name of the Customer/Company
1. Click the Write Checks icon located in the from the Received From drop-down list.
Banking section of the home page. 3. Type the Amount Received. (Note that this
2. Select Name of the Vendor/Store from the is the amount shown as due from them.)
Pay to the order of drop-down list. An Open 4. Type the Date Received.
POs Exist window should appear 5. Type Check #
3. Click Yes. An Open Purchase Orders 6. Click Record Deposits from the Banking
window should appear section of the home page.
4. Click next to the Date to place a check mark 7. Click next to both Cash Receipts Dated to
on the Purchase Order Number and then include them in this deposit, and then click
click OK. If a Warning window appears OK.
then click OK (if there’s a warning. ignore 8. Click Save & Close to record this deposit.
since)
5. Type Check Number if it is not already To record checks written to pay bills:
present. (You may have to uncheck the Print
1. Click the Pay Bills icon in the Vendor
Later check box.)
section of the home page. The Pay Bills
6. Type the Check Date.
window should appear.
7. Click Save & Close.
2. Click next to the date to select this bill for
payment.
To record the sale of inventory, apply deposits and
3. Click in the Assign check number option
receipt of payment for the balance due:
button.
1. Click the Create Invoices icon located in 4. Click Pay Selected Bills.
the Customers section of the home page. 5. Type the Check Number assigned to this
2. Select Customer’s Name/Company from payment
the Customer: Job drop-down list. A 6. Click OK and then click Done.
Billable Time/Costs window should appear
indicating that this customer has billable To create new jobs for existing customers:
costs.
1. Click the Customers button in the
3. Check the Save this as a preference check
Customers section of the home page to open
box and then click OK.
the Customer Center.
4. Click the Items tab to reveal the
2. Select or Add the Customer’s
information. Note that this window
Name/Company from the list of customers
identifies that an item has received from the
and jobs.
customer and is available for billing. Put a
3. Click the New Customer & Job button and
check if necessary.
then select Add Job from the menu options
5. Click OK.
4. Type the Job Name, and then click OK.
 5. Close the Customer Center window. 10. Click the text Name of the Employee in the
Employee column. Enter information for
To complete weekly time sheets for the month: Employee’s paycheck.
 Be sure to put employee amounts as
1. Click the Enter Time icon from the
negative numbers and company amounts as
Employees section of the home page.
positive numbers.
2. Select Use Weekly Time Sheet from the
11. Verify the net check amount on your screen
menu options provided.
with the net check amount, and then click
3. Click the Calendar icon and then click
Save & Next.
either the right or left arrow to navigate the
12. Continue the payroll process based on the
month
following payroll information. Click Save &
4. Click the Date in the calendar.
Next after entering each of the following
5. Select Name of the Employee from the
employees’ payroll information:
drop-down name list presented in the weekly
13. Click Save & Close after entering the last
time sheet and then click Yes to set up this
paycheck.
employee to use time data.
14. Select the Assign check numbers to
6. Choose Hourly from the Payroll Item drop-
handwritten checks option button located in
down list.
the Paycheck Options section of the Review
7. Type the Hours Worked on each day have
and Create Paychecks window.
worked, respectively.
15. Type the First Check #.
8. Click the Billable column (the far right
16. Click the Create Paychecks button located
column), which will uncheck the billable
in the lower right-hand corner of the
check box and so indicate that this line is not
window.
billable.
17. Click Close without printing paychecks.
9. Click Save & Close to close the Weekly
Time sheet window.
To bill customers for time recorded via the payroll
system:
To process payroll for the month:
1. Click the Create Sales Receipts icon in the
1. Click Pay Employees from the Employees Customers section of the home page.
section of the home page. 2. Click Job Number, located under the
2. Click No if the QuickBooks Accountant customer name.
Payroll Service window appears. 3. Click the Time tab, and then click Select
3. Type Date in the Pay Period Ends text box All to place a check next to the time charged
and then press [Tab]. by Customer to this job.
4. Click Yes to refresh the data for time-card 4. Click OK.
employees. 5. Type the Sales Receipt Date and the Sale
5. Type Check Date in the Check Date text Number.
box and then press [Tab]. 6. Click Save & Close.
6. Select Name of the Bank in the Bank
Account text box.
Evaluate a Firm’s Performance and Financial
7. Resize the columns if need be to view all Position
columns, and then click Check All.
8. Click the Continue button in the lower To prepare a Standard Income Statement and a
right-hand corner of your window. Balance Sheet for the Month:
 Trouble? If the window doesn’t show all of 1. Click the Report Center icon from the icon
the information you were expecting, just toolbar and then click the Standard tab.
double-click the title bar of that window so 2. Double-click the Profit & Loss Standard
that it enlarges to the maximum size of your view under the Profit & Loss section.
screen. 3. Change the From date and the To date, and
9. Verify the number of hours for both hourly then click Refresh.
employees to make sure you have accounted Remove the Date Prepared, Time
for all hours specified in the schedule Prepared and Report Basis fields from the
provided. header (if have done before)
 4. Click the Print button from the toolbar,
select Report, and then click Print in the
Print Reports window.
5. Close the Profit & Loss report window,
memorize the report in a group with your
name, and then minimize the Report Center.
6. Expand the Report Center and then double-
click the Balance Sheet Standard view from
the Balance Sheet & Net Worth section.
7. Change the As of date, and then click
Refresh. Remove the Date Prepared, Time
Prepared and Report Basis fields from the
header (if have done before)
8. Click the Print button from the toolbar,
select Report, and then click Print in the
Print Reports window.
9. Close the Balance Sheet report window and
memorize the report in a group with your
name.

To prepare a Transaction List by Date report for the

Month:
1. Click the Accountant and Taxes section in
the Report Center.
2. Double-click the Transaction List by Date
view from the Account Activity section of
Accountant and Taxes.
3. Type From Date and the To Date in the
text box.
4. Click the Refresh button. Edit the report to
remove the date prepared and time prepared
information.
 Occasionally, you might accidentally
enter the wrong date for a transaction If
you’re pretty sure you entered a
transaction but don’t see it on your
transactions list, it is likely that dates are
your problem. To verify this, try entering
From date and the To date. If your
missing transaction appears, double-click
it to correct the date and you’ll be good to
go!
5. Close the Report window and then
memorize the report in a group with your
name, and then close the Report Center
window.