How to Operate QuickBooks Part III

This is a continuance of QuickBooks Lessons.

Instructions

Difficulty: Moderate

Things You’ll Need:

• Personal Computer
• Internet Connection
• QuickBooks version 2003-2007

1. Now it is time to learn how to post to the QuickBooks transaction register in detail.
2. You started on the first day of the new year by depositing $5,000.00 into your new company's checking account. This will be posted to your Owner's Equity-Capital Account. Remember Capital is your investment into the business.
3. (1)Select lists > Chart of accounts. (2)Double click on your checking account to open it. (3)Enter your start date which will be 01/01/2008 and press TAB. (4)Delete the check number that appears in the number field and press TAB. (5)Type the word Deposit and press TAB; add this to "other names" when prompted. (6)Tab over to deposit and enter 5000 and press TAB to go to the account field. (7)Click on the down arrow and select Capital account listed. (9)Click record to record the transaction. Great! You have now entered your first transaction into your new company.
4. Now for loans. Two days after starting your business, you borrow $30,000.00 from Bank of America and deposit the money into your business checking account.
5. (1)Open the check register. (2)Enter the date 01/03/2008 and press TAB. (3)Clear the check number again and press TAB (4)Type Deposit and tab over to the deposit field; enter 30000 and press TAB. (5)You should post this event to long term liability-bank note. (7)Click record and you are done.
6. Within the next few days, your Mother-in-law loans you $6,000.00 to buy some office furniture. You purchase the furniture from Office Depot but had to spend $8,000.00 to get what you wanted. This is two transactions- a loan and a purchase. You must record these seperately.
7. (1)Open your check register. (2)Enter the date 01/09/2008 and press TAB. (3)Delete chk. number and press TAB (4)Type deposit and tab over to deposit field. (5)Enter 6000-amnt. deposited from loan. (6)Post to long term liability-Mother in Law loan. (7)Click record.
8. (1)Enter date 01/09/2008. (2)Enter chk. number 501 and press TAB. (3)Type Office Depot; add this to Vendor list when prompted. (4)Tab over to payment column and enter 8000 and press TAB.(5)Click down arrow and select asset account-furniture and equipment. (6)Click record.
9. Now, you go to your local newspaper and pay for advertising. The amount is $500.00. You must write a check since you have no credit with this newspaper company. (1)Open check register. (2)Enter 01/09/2008. (3)Chk. number will be 502. (4)Payee will be local newspaper and pmnt. will be 500. (5)Post this to expense account-advertising. (6)Click record.
10. After a successful weekend of sales, you now have $10,000.00 to deposit after selling $5,000.00 of inventory for 10.
11. (1)Open checking account. (2)Enter 01/15/2008. (3)Delete chk number. (4)Type deposit; enter 10000 into deposit column. (5)Post to income account-sales. (6)Click record.

Tips & Warnings

• Play around with these features a little and familiarize yourself with them.
• The more you use QuickBooks the better you will get!