Industry sign banking hawaii month to month lease computer
my name is Brian Watkins and this is a video tutorial for my accounting 231 course on QuickBooks and if you take a look at the screen this is what you should have printed out to begin working on your homework assignment it gives you some basic instructions about how to configure QuickBooks which is basically an accounting software you're going to do County now right at the at the very basic level we used to have bookkeepers that would keep general Ledger's and the general journal in ruled paper but now the standards QuickBooks so we're going to teach you how to use that this semester you'll go and open it and it's on the various computers in the library and gcb quickbooks premier accounting edition and when it comes up it should give you a screen that invites you to open a new file now if you see an update do not install the update because you have an image drive and installing the update won't do you any good so just say install later okay now if you see this no company open you're going to create a new company or if that doesn't work you're going to go to the file tab and hit new company either way we'll get you to the screen that you need to be at which is this screen here let me pull it down the Express start menu so just hit it now the company name is always going to be your name the only way to keep track of all the homework so no cute names here about awesome surfboard company because I can't tie them back to your name and you want credit for your work the industry is given to you I told you to open a general service-based business there will be different kinds of businesses in different homeworks company type sole proprietorship don't worry about the tax ID number you can leave that blank we'll continue you can leave all of this information blank QuickBooks is such a powerful program because it knows when to collect information that it's going to reuse over and over again you're not going to need to redo this your job is to learn how to enter transactions so you can leave this blank and when you create the company file be prepared to let your computer rest for a bit while it works I'm going to click on it okay it's been clicked and what you can't see I'll have to move up to it is a little dialogue here we go it says creating new company file please wait it may even say not responding that my computer often says not responding just don't hit any keys don't click on your mouse just stand by and wait quickbooks will open up it's just a lot of work being done and when it does open up it will want to give you some pretty much junk screens that you'll have to copy out of okay so we're not going to do any of this because we're not starting from from an existing company trying to put it into the system we're starting from scratch so we'll just say start working okay and this is the default QuickBooks screen and the choices that you see on the screen let's get rid of the Quick Start Center these choices are based on the kind of business that you opened the screen can get very very crowded depending on how complicated your business cycle is going to be now if you look at the homework it says go to the Edit drop-down menu drop-down menus are up here on the top line select preferences and from preferences go to purchase orders in inventory which is found in items in inventory company preferences inventory and purchase numbers purchase orders are active here we're seeing getting a good habit right at the front they want to close everything let it now when you see a blank screen and you need to get something done don't panic just push the homebody okay and you're lost you can go home that's not a drop down these are drop downs at the top these are just buttons and for everything in quickbooks there's probably half a dozen ways to get there which is why you just need to learn how to navigate through the interface and find which of the various means works best for you okay so now that we've in enabled purchase orders we can start entering transactions and if we come down here let's look at the first one februari first 2013 your first transaction in any new business is usually going to be to put money in the bank if you put your own money in the bank then you're creating equity because you don't owe anybody any money and the accounting equation says assets equals liabilities plus owner's equity so if we want to look at owner's equity as net assets or assets minus liabilities if you put your own money into the bank that's your equity we're going to do it differently in homework 1 we're going to borrow money from the bank we're going to go to februari first 2013 bank apply a loans you 25 thousand dollars on terms of 5% compounded monthly and amortized for four years okay so we're going to go the first thing we're going to do is deposit money and you do that at the bank record deposits remember where to find this because business is all about money and that's where you go to make your bank account it will say you don't have a bank account create one okay remember that an account type bank is very unique that's your checking account that's not any other kind of accounting account like an asset account or a liability account this is just the bank account you'll create at once and that will serve to handle your cash this is the deposit screen so you're going to receive from now word about these boxes any box that has a down arrow in it is going to be trying to save information that you can recall later if i just type the information received from bank apply a okay it won't be able to find it well so what we're going to do is we're going to do a quick add put Bank of like a in now I want you to think real hard they're loaning us money okay so for the purposes of this transaction there are vendor a vendor is any business that we do business with they're not our customer or an employee and frankly were the only other were the owner so bank of light ea's of vendor now that's the quick add procedure where you type and then you add it the other thing you could have done is hit the arrow and clicked on add new okay there's multiple ways of doing things what's the account going to be called well I'm telling you in the homework because I understand your you're not all finished with 201 the account is going to be a long-term liability because the loan is longer than one year if it were shorter than one year it'd be a short-term liability or a current liability but since it's longer than that we're going to create a new account it's not listed here so we're going to add new and we're going to let it prompt us that's a loan so we'll continue and the question is is the current liability no it's a long-term liability its long term note so we're going to call it a note payable spell it right table to the bank of La a it gave us a loan we can give a description of the loan here if we want it's five percent compounded monthly and amortized over four years okay what does that mean well if it's amortized that means it's going to be extinguished or it's going to go to zero over this period for your period and the interest rate that you plug into your calculation is going to be five percent compounded monthly now fortunately you have a calculator that you're going to learn how to use that's going to be able to do calculations like this now I'm pulling up the Excel workbook that you're going to learn how to prepare this module but let's just use it for our loan here our loan was twenty five thousand dollars okay since we don't have any down payment with just eight zero down payment our interest rate is five percent and the loan period was four years so our monthly payment on that loan is going to be five hundred seventy five dollars and seventy three cents alright so minimum payment is let's look at it again 575 73 ok then we'll save and close this description is optional it's just to help us in in the event that we forget something about the account so we save and close and this is our initial financing essentially what we did is we went to the bank with a business plan and we convince the bank that we're going to make money off of this plan and the bank said fine I'll give you some money to use and open an account for us so the payment method is cash and the amount was given $25,000 hey this is a basic deposit now the most important thing that you do when you're working on QuickBooks because this problem or this program is designed to capture information from people who don't ordinarily have training and accounting it tries to do things automatically for example it thanks today is the 7th of January well it is in the real world but not in the accounting 231 world where if you look at your homework this is februari first 2013 that is the most important skill for you to learn for the entire QuickBooks curriculum you have to make sure that every transaction that you complete has the proper date on it or you're going to screw up your work and be frustrated and your tests are going to be wrong and just fill in the blank anything bad that happens will likely have happened because you forgot to set that date so let's double check bank of La a 25 to note payable dates right save and close there we go all right so there's a check given to us in the homework it says at this point your balance sheet only has two items cache of 25,000 and the long-term liability well let's go look at the balance sheet you can look at your accounting statements by going to the reports tab company & Financial there's a large selection here but we want to look at a standard balance sheet now balance sheet is a picture in time again computer thinks today's the seventh but in accounting 231 world today is februari first so will refresh on that new date and here we go the bank of La a has 25,000 in it and we owe the bank of lie a 25,000 and since our net assets are 0 if you subtract our liabilities from our assets there's nothing there then we have no equity so we have no owner's equity we just have a loan of the bank we're going to build equity when we start to have income all right we did the first transaction right we don't need to memorize anything februari first next transaction you go and rent an office at the lie a professional building security deposit of fifteen hundred dollars and first month's rent of 1,050 are paid to Hawaii properties via check number one from your bank of La EA account okay checking is handled in the banking section of your screen here's your checkbook click on it right it's helpful to read what it says write checks for an expense that you have not entered at as a bill or a QuickBooks or you can use the checkbook to record a cash transaction right so we're not going to print our checks if they're designed to be printed we're just going to put a number on it here we'll put number one and it's going to be a new party it's going to be a vendor it's going to be our landlord actually and it's like oh sorry Hawaii properties inc now whenever you do a new person it asks what the opening balance is because it thinks you might be putting an old company into QuickBooks for the first time you're not so this date is irrelevant but just to get in the practice of always changing that I'm going to change it to februari first and now we have the date check number everything's right now we have to tell the program what the check is doing well the check is going to be split into two separate accounts one is to account for our security deposit well the security deposit belongs to us even though we can't reach it because of our contract with the landlord so let's go up here I don't see securities trading account so we're going to add a new account and it's going to be an other account it's going to be some kind of asset okay and there it is security deposits paid so other asset just remember that one so we continue and it says other asset and we're just going to call it security deposit for office okay and that's going to show up on our balance sheet so I save and close and the amount of the security deposit was fifteen hundred dollars okay and i'll put on the memo line security deposit or office now that's only part of the check we have to pay our first month's rent so we click on the next line click on the arrow and i am quite sure rent is here rent expense click on rent expense and we know that we're going to spend 1,000 fifty dollars in red so here's our first month's rent now let's put on the check security deposit fifteen hundred and first month's rent there we go now let's double check februari first check we got the right time check number 125 550 good our account security deposit and rent expense are good save and close that's done now if we made a mistake we'd go back to our checks we'd hit previous and it would pull up that check okay just in case you made a mistake alright next transaction February's second 2002-2012 the office needs furniture so we're going to go buy some furniture it's another check right check number two the date is now the second and we're going to go buy furniture so we'll have a new vendor and the new vendor is Honolulu business apply and even though it's irrelevant I'm going to change the date here just to show everybody to get in the habit okay and we're going to write them a check for two things one is office furniture so office furniture is going to be furniture and equipment it's a fixed asset so I'll put 17 hundred dollars their office furniture and three hundred dollars of supplies now this is paper and paper clips and rubber bands and things like that and the way accounting for supplies works when we buy them they're still assets we're just training one kind of asset cash for another kind of app asset supplies at the end of the year we add up all of the checks we wrote to supplies we subtract the value of whatever's in our closet and what's left over is our supply expense for the year but that's a little more complicated right now I just need you to know that supplies office supplies are not an expense yet until we use them okay we're going to put them into some kind of other assets because it's not appropriate to expense them right away we'll add new and we'll say just some other asset here and we'll continue I think it's a current asset other current asset continue and will say up office supplies up 30 in use ok let's look from examples that doesn't help us office supplies already in use I'm not seeing it it probably just doesn't like this so we'll call it off of supply inventory has that so we'll go and we'll create current asset and we'll call it office supply inventory okay good accountants don't expense things until the period in which they are used to matching fit and our three hundred dollars worth of supplies so i'll just say stock the supply cabinet okay and i'll put on our memo furniture and supplies so let's double check it says we write check number two for these two things good its second close all right let's go to februari six then we made a deal with cable company to supply fiber-optic that will allow you to sell high speed internet it right check number three check automatically comes up for a sixth to a new vendor this vendor is trans-pacific and I don't need to change this but I'm just going to do it so that everybody can see and be careful about that all right so trans-pacific what are we going to get from them we're going to supply a line and we have to make our first payment so this is for six months so this is going to be an expense because it's going to be left this year and this is going to cost us $1,500 for six months of internet connection so we're going to hook up right at the source this is internet connection transpacific oh I should put six months just in case you never know sometimes your checks can be the only records that survived because the bank has them and you might want to make sure you always keep a good memo line happened to me once all right save it close now we have another check we have checked for same date this one is to island tech items tech for running the fiber line to the cable hub okay now this one can be a little trickier to account for because it's going to produce benefits over the lifetime so you might if if you're the accountant here you might want to have this become an asset that's that's capitalized and a
ortized as it's used but for today we'll just call it an expense we'll call it a computer and Internet expense for two thousand dollars so set up the fiber optic connection that's a let's eat fiber optic connection the decision whether to expense or to capitalize is something you'll get into in your 201 class but for today we'll just make the decision to expense it it's right date $2,000 save a close all right so now februari 8 we're going to send a purchase order okay here's purchase orders that only came up because we went to edit my preferences and we said that we're going to use in the company preferences we said inventory and purchase orders are active so if you don't see those on your screen that's because you didn't go back and set them purchase order is an offer to purchase it doesn't have an accounting entry it's the eight now it just creates a paper trail to show that you ordered something and then usually what will happen is the company who ordered from here is California data it's februari eighth this is not necessary but I'm going to do it just to be careful set the date ok so the back to purchase orders they don't create an accounting record because this is just like filming them and saying hey can you send us a bunch of stuff then they will love to send it out but I want to teach you how to get an inventory item so we're going to click on the item and we're going to add a new and there's a list of things to come up service parts assemblies all kinds of stuff fixed assets like our office furniture so we're going to call this an inventory part because it's an independent it's just a router okay we can call it I didn't give you a number but if I did you put it here XYZ 123 and we just call it a wireless router okay and it costs us a hundred dollars and we're going to sell them to our clients for two hundred dollars and that'll be sales ok now this information down here I don't have to set this but i will just so nobody gets confused you can set a reorder point so that the program will automatically tell you hey it's time for a new purchase order you're running low on routers that's the router item and i'm going to buy 20 of them ok and it looks like it's helpfully figured out $2,000 we haven't we haven't put sales tax in yet we will later this is a business to business transaction so I don't think we need to collect sales tax here but just in case you're wondering we will get to that so we'll call our memo line purchase of wireless router tastes just purchase order so we'll check it send out ok good and here's where QuickBooks gets annoying yes it's 30 days in the future but we're sure we want to do it so that's done now the next thing that happens is they send you the inventory ok now we didn't send to check with our purchase order so we're going to get our inventory probably with a bill and if I read my thing februari 15th receive routers with a bill pay the bill on the same day this is how you set up a bill first thing you do is you set your date bill came on the fifteenth that's important and then you look at your vendor well we bought these things from California data and it tracks and it finds out that hey there's an open purchase order so I'm going to receive against that order yes so I click it and now it pulls in all the information that we put on the purchase order into the bill and since there's no terms given we haven't learned terms yet i'll just put do on receipt so here's our bill it's it's filled it all in nicely for us we check 15 2007 clothes and I've changed the terms oh that's just it no ok so we pay the bill on the same day now here's where you really would be helpful to have a pencil and be marking up your transaction list because if you forget to pay the bill your numbers are not going to be right and you're not going to get credit for this so I hit pay bill it remembers it there it is I look at the date the date is right there's no discounts or any other problems here will assign a check number it looks like we're going to be on check five so we'll put check number five down pay the bill check number five okay so that's done we don't have any more bills we're done with that one so we can check that off februari 19th today you signed up a customer customers are going to give you money it's what your business is about you can either create an invoice which is a bill to send to your customer and then you'll receive payments on that later or you can create a sales receipt which is a cash receipt well we signed them up and we're going to do a cash receipt so our first customer will enter them into the record is Canio a pawnshop Kanye and I don't have to do this but I'm just going to do it so that nobody gets confused i'm going to change the date to the 19th okay i'm going to change the data on the receipt to the 19th because that's the date of our transaction and they paid us for a router okay that's in my system I can just say one router and two hundred dollars comes up okay and then they're going to pay us 500 for the first month service well I haven't put that in yet okay now look I can always pull this down and get more of those blue white lines but now I've got to add a new item and it's a service and the service is internet service that's what we're selling so I'm just going to say for one month internet connection we're going to sell those for five hundred dollars because we have a g-wiz fiber-optic line and fastest internet you'll ever get and the account is sales it's our income okay and we're just going to say that there's one month worth of that and we can print a message thank you for your visit we could put anything we want there now here it's important to remember that QuickBooks we're dealing with all these screens but these screens are really a computer view in the real world we'd be sending documents out that look like this and we could put graphics on them we can put all kinds of information but just don't forget the quickbooks is more than just a computer screen it's actually creating the paperwork that makes business work so payment we're going to get cash i believe yes they are going to pay cash okay and when they pay cash we have to deposit it the same day so we're going to save and close and then we're going to go to our bank and it's going to say hey you collected some cash so we'll just click on that and it'll create the deposit for us check the that the date is right this is also a very common mistake if you forget to deposit your cash you're going to have undeposited funds on your balance sheet and I'm not going to your cash is not gonna be accounted for correctly so I've done that right and because that was a sale now I can go to company & Financial profit loss income statement you change the date remember I have to go all the way out into februari and then refresh it okay i just picked random dates so that I would have I would stretch the coverage of this accounting statement to cover all the transactions I did and here we can see the sale we can see that we sold them something our cost of goods was a hundred and we can see the expense we've already encountered so far in our business and we're buying by a thirty-nine hundred dollars that's that's what's like to get started so far so good okay februari twentieth we sign up to new customers so let's do this again and our first new customer is Wallin wall it's the 20th so even though i don't have to i'm going to do this just so nobody gets confused it's the 20th and wall on wall are going to get their internet service and a router okay they're going to get one router and one sort of the sillies they say thank you sale to wall and wall presumably cash they could have given you a check yeah let's say they gave us a check and it was just check 400 okay there's a good way to put that on so have the check and we'll save and close and then we have another one that same day and this one is to oahu properties and I don't have to do this but I'm going to just so nobody gets confused all right and this sale is identical its service and a router one month or router properties you'll have to do a message but it's always nice so save and close okay now we make the deposit of the money that we've collected there's no deposit so even close so all our money is in the bank okay so now we're at februari 21st and we have a loan statement showing our first payment due we didn't set this up as a regular bill I think it's probably it could be done either way you can have a bill pop up every month to remind you or you can just write a check to pay the bill either way so let's just write a check we're going to pay the bank of La a and it's our first loan payment and looks like the amount we'll just set up for checks six and we'll pay the minimum amount okay and that minimum amount had both interest expense the interest expense was 10 for 17 and the repayment of principal which is a payment against our longer term note payable this is the principal payment for seven 1.57 now how did we get that well you'll recall that we spend some time doing a calculator does just that here's the payment there's the interest part of the payment there's the principal the interest is it the highest at the beginning because that's the amount you're paying interest on and so now you pay off 471 dollars and this is how much earns interest for the next month so the interest will continue to go down and if you did your bookkeeping right right at four years oops or 48 months 0 so that's our helpful calculator at work let's enter that so now it's 57 674 looks like we have a rounding error there because the note payable what the moated what did it say here I guess it just had the rounding error in it so we'll just change this to a six we'll Fudge it okay change the note payable to 47 256 see here why is it for 725 647 156 yes of course or 256 ok now let's look at it see if it's right 5 7-6 7-3 10 for 17 471 there we go hey that is complicated as I can 575 73 check check we'll say first month's interest on loan and then first month's leave payments of principal payment number one on by a a loan save and check the date date ah good dates 21st ok I think that's that's it ok so if we've done this exercise correctly we can do our report and let's do a profit & Loss standard and our last transaction was on the twenty-first of februari so if we go to the end of februari or certain to get it so that is what your profit and loss must look like ok now how do i upload this because it says here that you need accounting journal balance sheet and profit loss ok what I do is I can either go to file and I could say save as PDF so let's try that and it came up as save as PDF so I'd save it income statement ok save it on my desktop that's done the other way to do it depending on where you're at in the testing center we're going to use a PDF writer okay so it's taking forever on my computer to do this but it looks like it did it I can also print but instead of sending it to my heart printer I could select a PDF converter or in the testing center you're going to use this cute PDF writer so I'll use that on another one here let's do that's our profit loss will close it now let's look at the balance sheet reports company financial balance sheet standard it's now februari 28 fresh there's our balance sheet there's our Bank of like EA there's our inventory our office supplies of our furniture that we bought our security deposit and yes we're in the hole here we have no equity negative all right and there's our loan balance so our our balance sheets right let's do it the other way we're going to print we're going to select the cutepdf writer and then I'll print it and instead of paper coming out of the printer what's going to happen is this thing's going to spit out PDF it's taking its sweet time about doing it up here it is so I want to save it as balance sheet and I'm going to save it on my desktop ok so there it is save alright so hopefully it's there when we need it and now for the third document you need I can't grade you unless I see your accounting journal the journal is found in reports under the accountant page accountant so go down here and print the journal and the journal let's go to the right time period again februari 28 refresh the journal tells us everything that we did here's the deposit here's the white properties all the way down if you don't do a journal you don't get graded okay it's that simple that's how we tell if you did it right so I'm having you do this all from the very beginning so that when it gets to the test it's all old stuff for you you know how to do it everything's good so now let's go and let's see if my balance sheet let's just pick one here pull up my wife's busy day here ok and here's the balance sheet it showed up if I double-click on it that is the balance sheet there we go now it's full screen okay that's what you're after I want you to take a nice long look at this because this has all the numbers that you need to have to get credit you have to have the account just as per this balance sheet the net income I'm not even going to look at the at the income statement unless there's something wrong and the way this is being done you have to have it completely right to turn it in ok this is a competency based grading system for quickbooks do it right turn it in and you are done if you do not turn it in by the 15th which is the day before your excel test then you cannot turn it in for full credit ever again it will be five points off of the 100 points you will get for your final excel or sorry your final QuickBooks test so get it done get it out of the way you have time at the beginning of the week here and if you have any questions contact me in my office good luck
