Document type sign assignment of partnership interest hawaii fast
my name is Brian Watkins and this is the video tutorial accompanying homework number two for the quickbooks and accounting 231 we're going to create a retail shop or online commerce business this time we're going to make it a partnership and what I'm trying to teach you will largely revolve around inventory issues on this assignment so if you haven't seen this screen before I just wanted to bring it up in case you should find a computer that has an old company already on it that wasn't erased you'll create a new company and the once you do that of course everything looks the same we go to express start I want you to put your name here I'm going to put a partnership name just because we're working on a partnership this business is going to be a retail shop or online commerce hit okay I use the choose they're not here we're going to do a partnership so now we continue and create the file and as you see the file takes a while so I'll put it on a pause okay we've created the file and again if you're create file says not responding be patient and let the computer work we're going to start working it gives us our home but it opens these extraneous windows for us okay so now we're ready to go looking at your homework you realize that you have to turn your inventory and purchase orders on and that is done in the items and inventory company preferences inventory and purchase orders are active I hit OK closes everything I go edit now the second thing that we're going to do in preferences we're going to have sales tax in this example so I'm going to hit the sales tax company preferences yes i'm going to add an item and that sales tax automatically comes in because it knows what it knows the referral screen so it knows we're looking for sales tax we're going to name it sales tax we're going to call it the or call it at ten percent and the state agency is going to be the state tax authority now if you get past the add new and you just put it in the box state tax authority I've noticed that the upgrade to QuickBooks will allow you to have an option to click Add so the old one would let you put it in the box it wouldn't remember it and then the next time you needed the information that wouldn't be there so this new version has apparently picked it up so you can either hit add new or you can just put the name in the box either way you get the information in so I hit ok I'm going to charge sales tax for everything yes finally please get in the practice of turning off the beat that's done in the general and let's see there's deep when recording a transaction so now we have everything ready hit the home button and let's begin so we look at the homework and we see here that we're going to be doing something in January so on january third 2012 we're going to make a deposit record yes we need a bank account it says the bank of ye a so we form that bank account and we set our date to january third very important to get to date 5,000 of this money comes from you ok so I'm going to add myself I'm not a vendor customer employee I'm an owner I'm an other so my name and my account is going to be my partnership let's see partnership one equity on partner one so its initial funding partner one and let's see I'm going to do cash $5,000 ok now my my other partner or actually my partner aside for me is an other and it looks like French John Walker so John Walker will be our partner for this exercise he's partner to equity initial this show too cash 5000 okay let's flip it over you deposit 10,000 to account at the bank employee 5,000 for you 5,000 from your partnership or from your partner so we each have equal interest save them close okay good now I'll just let's see January fifth 2013 you and John agreed to purchase hand-carved picture frames from an artisan in hauula so we're going to prepare a purchase order and we're going to get looks like three different items in and so let's see what the name is call them how Allah woodworks so add a new vendor whole of wood works I don't have to set this date but I'm going to do it just so people don't get confused January fifth 2013 good my first item which I'm going to have to add it's going to be an inventory part and it looks like khoa would small frames so let's call it a small toe of wood frame our manufacturer is a woodworker out in hauula so we don't have to worry about fancy catalog information the purchase transaction will be the small TOA wood frame and let's look here we're going to buy a hundred of them and the color wood frames are fifteen dollars each so our cost is 15 cost of goods sold our sales price will of course go to merchandise sales let's see what the sales price is you will retail the coal wood frames for thirty-five dollars okay done the asset account it's an inventory asset I don't need to change this but it's December fifth sorry January fifth 2013 doesn't matter there so essentially i now have a piece of inventory small coal wood frame i sell for 15 or by 4 15 sorry i sell for 35 this is the inventory part description so once i hit that ignore doesn't know what co of wood is i want to buy 100 of them okay so now i'm on number two here i'm going to do a new inventory part and this looks like large large frame from whatever would the artists have available okay so i'll just say the large frames these are not necessarily cold wood and the cost of the large frames we will pay 45 each and we will sell the large frames for a hundred and remember we have to be careful at this spot because these numbers will pop up later on in our work it's still january fifth and what this information is here is you can have QuickBooks prompt you automatically when you make a sale if that sale dips your inventory below a certain point but we're not going to use that so we have large frames 50 of them so by 50 and we have a third item and this item is a palm tree carving the palm tree carving looks like we will pay $25 for it but this one is different this one's going to be combined with a clock and we're going to sell a combined item so this is just the part I'm not going to put a sales price on it because we intend to combine it with something oh I still have to do the income and that's merchandise sales okay we're all right how many palm trees we're going to buy 50 palm trees okay so initial inventory from whole of wood works let's double check now our date is not the third our date is the fifth and small coal wood frame 150 large and 50 small okay and we're paying 15 for the coop 45 for the large 25 for the palm tree carvings everything looks good it's $5,000 save them clothes again it doesn't know co so I'll say ignore khoa doesn't know holla ignore holla and we're done all right I'll just let's see this January seventh another purchase order January seventh and this vendor is going to be hong kong clockworks it's the seventh I don't have to do this but I'm going to do it just to be consistent there we go on the date the Hong Kong clock people are going to sell us a it looks like 50 small battery operated clocks that we're going to put into our palm tree carvings so we'll say just the clocks and the manufacturers part number is X JW 200 we enter it there so that whenever we automatically do another purchase order it will link that part number with this item name so on our purchase transactions we want an x JW 200 clock but when we sell it we're just going to call it clock but again this is not one we're going to sell separately so the clock cells to us for 1250 comes with its battery and we have to always set a merchandise sales account but we're not going to put a sales amount for the clock because we intend to put it together with another piece so let's go back it's January seventh I believe okay so how many the clocks are we're going to buy 50 small clocks okay and say block purchase so January seventh 2013 purchase order number two clocks x JW 200 cells for 1250 comes with battery good all done all right I'll January 10th we're going to send a check so our write checks features down in the banking section and we're going to turn off the to be printed feature so that we have control of our check number it's going to be January temps okay and yes January temps we're going to make this payable to a vendor which is another business that we do business with called the Honolulu art there and we're just buying the right to show up at the fair and have a booth with our stuck in so let's see two hundred and fifty dollars to cover your costs of renting a booth rent expense 250 and booth rental app art yeah put that on here please rental are here okay so let's double check two hundred and fifty dollars January 10th renting a booth everything is good and we can say too close okay now we're in February februari 8 2013 we go to holla and pick up the order from Hollywood works okay so let's go to pula there's no bill so we're just going to write them a check for the goods so let's just receive inventory without a bill so that we have a receipt showing in our records that we went to Hollywood works open purchase order yes we do that so that we can get the information in without retyping it so here's all our information it's now not the 10th it's the eighth of January and we're going to give the receipt to our people we have to write a check though so let's leave the check off and let's get this straight because now we have a bill to to enter against our inventory and you'll see why this is going to be important here so we'll save and close our item receipt now we're entering a bill a little wood works okay here's the item receipt which corresponds to our bill and we'll use the item receipt date for the build date okay now it brought it in as a bill so on receive inventory you can either receive it with the bill or without a bill if you receive without a bill you make a receipt and then you come and you create a bill why is it so important to create a bill because it's here that we can add certain costs that we incur we have no terms here we've already paid it so we leave that alone but we do have to pay a tax of ten percent so our item costs are a little bit different so ten percent of 15 is 150 so now I'm paying 1654 my small coal wood frames for 50 is my tax on the large frame so now I'm paying yes I'm paying 45 so i'm going to change this to 49 50 because i'm adding 450 for the sales tax yes i'll update the item and then palm tree is 25 which means i'm going to add 250 so i'm going to have 2750 here it helpfully updates the costs and when I recalculate my mount do is now 5,500 which is exactly what I have to pay i have to pay 5,500 because my vendor is charging me sales tax I could probably those of you who are being picky I could probably get a refund of the sales tax later because i am not the end user of these products but sometimes you get people that they might not understand the rules and so they charge you anyway so we've put the bill in and the save and close the bill it's linked to others yes and now I'm going to pay the bill ok this is this is a way to automatically get a check out I could just as easily write a check for this but the way to do it appropriately is to put it through the billing process so I'm going to check my date july eight that's correct I'm going to assign it a check number so this will be our check number two I believe because we have check number one that we wrote to the Honolulu art fair and I'm going to check the box to pay it ok a signed check number and hit up the check number is going to be two and hit ok and then the bill is paid now if I look at my check I can look at my checkbook I can look back at check two and there it is it automatic or price that's not check to that's check one okay so check three there's check to how Allah woodworks fifty five hundred dollars and it automatically put all of that 5,500 into the inventory account where that belongs how do I know that here's a new report for you go to reports go to inventory go to valuation summary it's going to automatically pop ahead here I hit refresh and so here are the costs they went up by ten percent because i had to pay that the tax and my inventory is in my storage area or warehouse and it's worth fifty five hundred dollars so if i want to know what my business is worth at this point i do a standard balance sheet always use the standard we can see i'm down to 40 to 50 i have 5500 worth of inventory and our equity is each 5,000 still but we have a net income of two hundred and fifty dollars because we wrote that check to the art fair and we haven't made any income yet so everything looks good let's go now over to page two okay we're now looking at februari tenth and the clocks arrived with their bill so a more typical way of receiving inventory is with a bill and the bill is coming from the clock people and there's open purchase order I click the purchase order so that the information comes in there's no terms so it's just do on receipt the date is the 10th okay we've got everything clock but it says that we have additional shipping and import fees that we owe of 125 dollars now last time when we had ten percent increases we just put them into the cost but now we have a lump sum increase so 125 + 6 25 means we're going to pay 750 for the clock so when I recalculate I've got to pay them a bill of 750 which is the 125 import fee plus the 1250 x 50 so now you can see that our per-unit cost has gone up to 15 but our inventory in total the clocks are worth 750 so I arrived but the bill doesn't say to pay the bill I just have the bill so I'll say bill for clocks and it's going to help fully remind me that I have to pay the do or sorry have to paid have to pay the bill I could set that date for a week or two but we're not going to do that on this one we're just going to practice remembering how to add costs to your inventory that's the purpose of this homework to teach you that the inventory has to have all of the direct costs associated with it in its value okay so no matter what it costs to get that that inventory there if I can attribute the costs directly to the inventory then I have to make sure my inventory is valued appropriately so that when i sell it I'm expensing all of my cost of goods sold okay so save and close the bill I've changed the terms I'm sure I can have that time all right now we're at februari 12th and we're going to write a check to Rebecca Walker for her time and labor putting the clocks into the palm tree carvings now this is where we're going to define a new kind of inventory and the inventory activities is where this starts and access key inventory tasks we're going to build assemblies we're going to take inventory parts and we're going to build something out of them so here's the build assembly page it knew exactly what we want we're going to have the inventory assembly let's see add new item inventory assembly and it's going to be called a palm pre clock and I'm going to do the cost later this is the palm read clock it has no cost of its own the components that we're going to put into it are one palm tree and one clock we're going to put them together and we're going to sell them for it says up in the second entry the palm tree carvings will be combined with a clock movement and sold for $75 75 my income account if merchandise sales and now we do the Bill of Materials the Bill of Materials shows us what goes into each clock not all the clocks each clock so each clock has one clock in it and each see it has one palm tree carving okay the clock has cost of 1250 and it should have a cost of 15 so something's up here the total bill of materials cost so I guess it can't hurt to practice this I'll cancel it and let's find out what's going on with our palm tree clock so we received it with a bill so let's look here and there it's the fifteen dollars so for some reason it hadn't updated so let's recalculate this might be a date problem let's go forward in reports to inventory valuation detail as of the date let's just do all dates here inventory can be tricky that way so the the clock is showing at an average cost of 15 interesting okay so now we're not going to save that we're going to go back to build assemblies you can add the palm tree clock again we're going to leave cost blank because the costs are coming from the indivi
ual items and the sales price will be $75 the income account of sales in the Bill of Materials each one will have one clock and one palm tree carving okay and so that tells us the bill of materials cost is 40 and we will say okay and we're going to build 50 of them and it automatically says that the maximum number we can build is 50 because it knows we need one for each and so this is the assembly of palm tree box and so the date here is now well that's the problem okay the date is februari and it's februari 12 that should make the difference okay so we hit building clothes done so now if we go back to our inventory build assembly okay that was the problem sorry about that so let's go back to our bill and we're going to hit our bills are the bills previous okay how do I get to this you can get to it two ways I can either go to the receive inventory or and go to enter bills but what I'm looking for was that last bill I did where I merrily went along used the wrong date so I'm going to go up here and I'm going to say it was februari tenth and it wasn't January 10th making my mistake here always check your dates so recalculate there's our 15 save and close yes it's linked to others so let's make absolutely sure everything is fine now go to reports inventory valuation detail there are no clocks on hand good there are 50 palm tree that's okay again we better go tense receive inventory we received on februari okay so inventory not the one I wanted sorry I want reports inventory valuation detail we'll push that past the date we'll just head into March and so now we have zero clocks on hand zero palm tree carvings on hand but we have 50 palm tree clocks perfect it did work so we're good with our inventory and we can move on we have to write a check now okay and we're going to write a check to we're not going to make her an employee we're going to make her offender and she doesn't do regular work for our company hey if she did we'd have to pay payroll taxes and all of that so februari 12th okay and we're going to give her 75 dollars but what are we going to put it in teach you a new account okay we need to get the $75 into the value of those palm tree clocks because this is direct labor and it should be part of that inventory account in order to do that we're going to create a temporary account okay it's a new account it's going to be an other expense and we're going to continue and i'm going to call it an inventory adjustment and the whole purpose of this account is to temporarily exist until i can get to the other screen and grab that account I can't write a check directly to inventory to do it appropriately I write it to inventory adjustment okay so i have $75 and I say cost of assembling home three clocks or assembly up box hey I've got 275 dollars I'm going to pay it so the check is out now I have to put that $75 into the inventory I go back to inventory activities now I do adjust quantity value on hand it's now the 12th good The Adjustment account is that one I just created called inventory adjustment so whatever I do now it's going to take my money from inventory adjustment so my item is going to be the palm tree clock Mike okay there's three different screens here there's a quantity screen total value screen and quantity and total value we have 50 clocks I'm not going to change the quantity but I am going to change the total value so I have 50 clocks now worth 7 or started with 2125 I'm going to add the $75 that I paid to Rebecca Walker and now the value of my clocks is 2200 you add assembly expense because I should be taking the assembly expense as cost of goods sold not as a separate administrative expense so I have to add that expense to the actual inventory account and once I do that after the adjustment my average cost for the clocks is 44 so this is important because if I don't attribute the cost to the inventory I might sell the inventory for less than what costs I have in it and then when I'm not making money in my company I look and it would you wouldn't see for example that you're selling the clocks for less than it costs to it or for more than it costs to make them so my clocks are now worth twenty two hundred dollars again the original value of 2125 plus the $75 check that we wrote to miss Walker and put in the inventory adjustment account save and close ok so now if I were to look at a balance sheet okay and i were to move this forward x i will look at an income statement profit & Loss standard I just go to the end of the month we need to get our January in there okay so year and refresh our rent was 250 250 and our inventory adjustment is zero that's perfect way to tell that you've done it right if you get to the end and the inventory adjustment is zero that means you took all of that money and put it where it was supposed to be which is the inventory so if i go to reports balance sheet standard and go forward say to the end of right there we go now our inventory asset is up to 6325 which is correct we owe 750 and I believe we owe 750 for the for the clocks okay nope so we're good now we're going to go to the trade show january twenty sorry februari 25th so februari twenty-fifths let's double check the check here okay so we wrote the check on the twelfth then we go to the trade show and we make a cash sale two kinds of sales cash credit sale so for cash we do a sales receipt and the sales receipt is dated februari 25th and we're going to get some cash and we're going to get it from a customer new customer whose name is Fred Carter februari 25th okay and fred is going to buy five of the small coal wood frames hey and you'll note that the sales tax has been computed and added to the sale cash sale read and let's double check the date good it says doesn't like that COAS so let's add that be sure to deposit the cash into the bank here's deposits here's the undeposited funds I check the box and Fred Carter 192 50 and twenty-fifth of februari save and close second you sell 10 of the palm tree clocks to Holly Ava art shop on account okay it's on account we created an invoice we named the customer Holly or is it art shop the date is the februari 25th done okay and this is going to be an invoice so we can put terms on it and it says payment due in 30 days so net 30 we're going to sell 10 of the palm tree clocks so their sales tax 75 sale $75 ship on 225 everything looks good save and close we'll have it remember that billing is net 30 all right februari 26th kilo Hattie's decides your stuff is good they buy everything you have left well now that's the big reward but the question is what do we have left so we go to our reports we go to inventory and we get evaluation detail and we want it as a februari 25th so it looks like we have 95 Kovac frames write this down okay so we have 95 left on hand and our palm tree clock we have sold 10 it looks like we have 40 palm tree clocks and large frames we still got 50 we haven't sold any of those so 50 large frames so having information I need I now go over to create invoices oh they're going to give us a check okay we're satisfied their checks not going to bounce so we're going to create a sales receipt on the twenty-sixth februari to hilo hattie 26 the februari okay and now we're going to have a few items here so let's bring this down did you see how I couldn't I couldn't fit the third one in there but if I pull this down or you could always use the up and down arrows here so the first thing we're going to sell are all the coal wood frames we have left 95 the second thing we're going to sell is going to be the palm tree clocks we're going to have 40 of them the third thing we're going to sell are all our large frames which of which we have 50 and we're going to take check number what was it here 200 check number 234 actually very imaginative that's not the sale number sorry that's the sale number we're out of check number two three four aim it by check and we're going to deliver immediately and we're going to say wow pleasure working with you because if I close this we can see that we just made a sale of pull this out here twelve thousand four hundred and fifty seven dollars and fifty cents so that looks pretty good to me save and close and let's get that check into our account so the check is now in the account and let's make sure that our inventory so if we go up to we can do this two ways we can check our inventory you evaluation summary as of the end of februari and see that it's zero rate we've sold all our inventory the other thing that we could do is we could go to our balance sheet and see as of the end of februari that our inventory is now no longer listed on assets because we have zero inventory so we've done everything right there okay so now we have a couple things left to wrap up let's pay that bill that we had okay let's say it's the last day of the month we're going to wrap up our business dealings here with them and we're going to write a check will sign check number and I believe that we are on check number let's see two three four I think we're on check number five so we'll pay the bill check number five and we're done with that so if we look at our checks fire to the hey 32 Walker 52 the clock works oh I guess we had check number for that we could have done okay not a problem the check is out there and now we have to if you look at your balance sheets you are holding some cash I you should have at the end of februari a liability fresh for sales tax payable now taxing agencies like to get their money so let's pay our sales tax we go to vendors and their sales tax it's up on the vendors screen and we're going to pay the sales tax we're going to tell it that the sales tax through the end of februari our check date will be the end of February the amount due is 1225 let's just check it and pay it and so check number 6 and I think that's done so now you finished your you finished all of your assigned transactions let's go up to the reports and let's look at our profit and loss and let's go from let's go entire year all we can hit all and goes right to where we are so we sold twelve thousand two hundred and fifty okay what were our sales here are here are the sales we sold to Fred Carter Holly Ava art shop and then hilo Hattie's so you can drill down by just clicking when it becomes a magnifying glass our cost of goods sold was 6325 where that come from here's where it came from undeposited k and rent expense 250 so that looks good okay let me just put this up here so I'll freeze this take a look at it make sure your income statements correct now let's do the balance sheet and let's look for February 28 so we now have a receivable from the art shop and we have the bank of La EA and it looks like everything is good I'll basically wrap it up here make sure your numbers are correct on the balance sheet turn it in and the thing to remember on your notes this homework was designed to teach you how to do an adjustment to your inventory valuation there's several adjustments we did the first one was a percentage adjustment that we just adjusted the price on the bill to show how much we paid to the person from whom we bought the the goods the second one was for like a shipping and handling which was a lump sum amount that we just added to the bill the third one the trickier one is when you pay a third person and you have an additional person in the loop so we had to pay rebecca walker and so the cost for those palm tree clocks came from three sources hong kong clockworks hauula woodworking and rebecca walker i showed you how to put all the items together into an assembly how to then add rebecca walkers check to the value of the assembly and ultimately sell it so you should now be experts in inventory you should now upload the PDF as instructed thank you you
