How To Sign Hawaii Banking PDF

How to industry sign banking hawaii pdf later

okay this is brother Watkins and this is a video on homework number four which i originally said that I was going to do but the dates that were provided earlier went through the end of the year and that made it unnecessarily difficult and the object of this is to teach you how to do bank reconciliations which is the last skill that you need in order to take your final so what I'm going to do is just do a video I had said that I wasn't if you haven't been studying for quickbooks you're never going to get past the final so if you've been just doing a quick you know one off the video you might want to practice so i have given you on in structure go to the course here there we go if you come down to the very bottom bring this down I put a sample exam here and this sample exam is one that i actually used about a year ago it covers pretty much everything there's not so much inventory adjustment material on this but it is a good indication of how long and involved the test is going to be so what I would recommend is that after you finish homework for you take the test without looking at the key without looking at the video and see if you know this stuff well enough and if you do then go take the test get it over with so let's begin we're going to create a new company it's going to be a retail shop it's going to be a sole proprietorship so we'll get into QuickBooks here's our Express starts alright i'll pull this down homework number four you would use your own name retail shop or online commerce just near the bottom and sole proprietorship ok we'll create the file I'll pause well it does that ok we're done with creating the company and now we need to make the adjustments so we go to edit preferences we're going to turn on our items in inventory now they're active closes everything now we're going to go to our sales tax yes so tell tech charge sales tax add the item we just called the tax named sales tax goes into the description rate is eight-point-five percent tax agency remember you can type directly in here if you do the quick add so i'll show you how to do that state tax authority and it will say quick add yes and ok alright and then finally for those of you preparing to take your test in the testing center go to general ok we're going to save the sales tax we're going to make everything taxable and when we go to my preferences we're going to turn off the beep ok that's important because if you're in the testing center beeping people aren't happy with you and okay go home all right we're ready to begin now let's take a look first thing we're going to do is deposit one thousand dollars into an interest-bearing checking account at the bank of laea as your owner's equity March twentieth easy enough go to record deposits beat the bank account first bank of lie a and it's received from yourself you're an other and the accountants owner's equity because this is your opening deposit there are no claims on that money the other option it could be from alone in which case you would say from account and it would be a long or a short term loan that you would give somebody and the amount is one thousand dollars and we're going to go March twentieth okay everything looks good save and close yes that's okay and we're done so now we check the box I'm going to go to the next one create purchase order number 12 caltex for an assortment of red 100-percent cotton t-shirts ok tire price of 100 shirts is 630 475 alright purchase order and let's try that quick add again caltex quick at and then we're going to shade eight is 21st and our inventory is t-shirts essentially we don't keep track of all of them so the man you're part number should be something I haven't given it to you but we're going to keep it a little simple here I'm trying to teach reconciliations this time but I want you to think of what would happen if you actually did have 100 pieces of inventory you'd have all different kinds of sizes they'd have all their own costs they'd have all their own sales prices you're not going to sell a small baby size for the same size as a triple large so what we're going to do is we're going to put the cost everything on one inventory part okay and the cost was six hundred and thirty four dollars and seventy-five cents right there 630 475 you need an income account but we're not going to set up sales price because essentially we're going to be selling them at a later time in this exercise now if we were going to be selling these shirts and actually going forward with that we would probably have to figure something out but you'll see how it'll work out ignore all like t-shirts okay we'll just put a quantity one here because we're buying one big order of 100 t-shirts 100 t-shirts and if you read the directions we're going to fix these things up and we think we can make some money selling them at Kahuku football games okay brings up spelling again ignore all done all right so on March 30th you receive the shirts and pay the bill by sending out check number one today ok so we receive inventory with the bill it's now the 30th so we're going to mark the 30th on our bill the bill doesn't come with any let's see caltex there's a purchase order so there's all our information there were no terms given so we'll just say two on receipt and this is the bill for 103 shirts there's no shipping or handling or anything we need to add here on the bill so we will save and close the bill we can change the terms terms are due on receipt I'm sure we can have them show up next time so now we follow the line here we don't need to enter bills against inventory because we did the bill when we received inventory you'd go to enter bills against inventory if you received them without a bill okay so now we're going to pay the bill and we're going to check the box we're going to make sure the date is the 30th good we're going to sign a check number pay six 3475 pay the bill check number one check numbers are important in this exercise so be sure you got that all right we're done with paying the bills now it's April second the bank of light a sends you your first checking account statement showing that you have deposited a thousand dollars you've received some interest they've deducted service charges and you have a closing balance you've only written one check and it hasn't cleared your account all of that information is necessary to doing a reconciliation in a reconciliation there's the icon which is in the banking area of your desktop what we're doing is we're going to match the transactions that QuickBooks knows about to the balance that's in your bank so your bank sensuous statement will say April second April second will change all of these April seconds and the bank says that you have nine hundred ninety seven dollars and sixty-two cents so we enter that 99 762 now that does not match our account because in our check register we go to work while I can't do that right now our check register would say something different because we know we wrote a big check to caltex service charge 250 and the account for that is helpfully already in the system bank service charge interest earned was twelve cents and that account is an income account which is not present so we add new go to other income but before we type anything see if it has it in the examples and it does interest income is there so you can save a lot of typing save and close okay our screen is now ready to go to the next step in the next step we tell QuickBooks which of these things these sub either deposits or checks have actually been recognized on the statement caltex hasn't so we can't check that one but the deposit is on a statement so I check in so that's an item that I've marked cleared and once I do it my difference is 0 that's the difference between QuickBooks and my bank when that's 0 we have successfully reconciled will get the successful reconciliation screen eventually my computer gets around to it if that difference was not 0 you would immediately leave and check because ninety percent oh I don't want to buy online banking thank you ninety percent of your errors are found on that sheet where you entered your bank statement okay odds are that you entered eighty cents it's tough eight cents or something like that now for this assignment I want you to turn into summary report so you'll display the summary report and then you'll just save it as a PDF so I'm saving it as a PDF so I'll save QuickBooks for summary and this is the March statement March reconciliation detail I could put spaces in there but I'm not I want it was too summery sorry okay reconciliation summary is the one I want because the detail has just unnecessary stuff in it alright so we've got that and now we're going to go back to see where we're at we've reconciled okay right check number two in the amount of a hundred dollars to art major roommate who prepared the designs choose an appropriate expense account alright so we're going to write a bunch of checks here and this one's going to go to your art major roommate it's going to be a better because he's doing business with you okay now when you do something he was if you look back he's preparing art artwork for t-shirts this is a direct inventory expense so we're going to put it in an inventory adjustment account temporarily until we can figure out how to put it in the full inventory okay so I've taught you just go to an other expense call it inventory adjustment and will save them clothes and art major roommate gets a hundred bucks on april fifth or preparing artwork or shirts okay now we're going to write a bunch of checks so rather than go do five separate inventory adjustments let's wait till our inventory is completely ready for sale because until it's ready for sale we're going to be making new adjustments so we will save and close now we have to get a ride to the beach bum a ride for some of you just means that you've asked somebody to take you down to the beach alright so we go down there you're going to take your shirts to a printer so we're going to write two checks one check two print works for 125 and another check to steve jensen he's your friend for 25 bucks for the gas so write checks first check is to print works okay print works okay and this is going to be an inventory adjustment I think it was 150 double check up 125 125 printing t-shirts alright april fifth no particular eight april eight okay and we have a second one that we're going to do on that same date to your roommate steve jensen okay steve jensen and he gets twenty-five dollars for gas but that's a direct expense of taking the shirts cost of taking shirts to printer hasta taking sure printer not expense its inventory so we'll save and close alright so now we have checks for so now on a twentieth of april we're going to rent a car pay another 50 bucks to hurts to go get the shirts alright so right check on the 20th take number 52 Hertz connect and we're going to write the inventory adjustments the amount of the inventory adjustment is 50 bucks and this was cost of picking up shirts printer sure Prechter alright so we will save and close I think everything is good the 20th fifth good alright so now we get back with the shirts and someone tells you there's no more Kahuku games for the season so you got a bunch of shirts they're pretty much worthless what you what are you going to do next so I'll pull this down we're going to reconcile our april 2013 checking account statement okay so we come down here to reconcile and it's our April statement I think it came on May third so we'll change this from a second to make third a third a third our service charge was 250 our closing balances 8545 8545 and then we had eight cents of interest okay again ninety percent of the errors are right here so we'll continue now we need to know which of these five checks have actually cleared I tell you that checks one two three and five have cleared so I check one two three and five have cleared and my difference is zero which means it was a successful reconciliation taking its time okay pull this down here so we're going to do a summary report form a so here's the may summary report I'll go up to file can't see this there we go file save as PDF quick books for May summary a conciliation done ok now go back to what we're doing so now we're going to sell our entire stock of shirts to a young entrepreneur from ku ku Hye that agrees to just give you three hundred dollars in cash because you know you've got all these shirts ready to go but there's not another football season for a year and of course you're going to graduate so this wasn't good thinking bad business your friend Steve Jensen says they lost is check you write him check six you do not collect any sales tax okay now let's figure out how to do all that so let's handle first the sale we're going to create a sales receipt because it's a cash sale in a pod okay we're going to sell to our kid in Kahuku we'll just call him the young entreprenuer they still out right if not sorry and he is going to buy our t-shirts which we have helpfully kept all together now at this point you think what is our t-shirt worth and then you remember oh I'm looking I'm sitting on a bunch of expenses that i haven't adjusted to my inventory so let's get out of here real quick no and let's go to inventory or before we go to inventory activities how do we check how much because we wrote all those checks so we go to reports will look at our income statement and we'll go from January first two I think we're at April twentieth now we're not April or May when we double check here we are may twentieth sorry May twenty and we refresh there we go and it shows that we have three hundred dollars worth of inventory adjustment so I have to put that inventory adjustment into the inventory before I do the sale otherwise the cost of goods sold will be messed up so I go to inventory activities I go to adjust quantity and value I'm going to do purely a value adjustment it's going to be May twentieth and we're going to use our predefined adjustment account as inventory adjustment we're going to use our t-shirts right now it says that we have six hundred and thirty four dollars and seventy-five cents t-shirts no we have to add 300 to that we have nine hundred thirty four dollars and seventy-five cents worth of t-shirts say to add costs of artwork printing and delivery of why it wasn't delivery it was yeah i guess it was delivery delivery to the printer and back all right save and close so now we go back to our cash receipt and we're going to pick the young entrepreneur it's the 20th he's paying his cash he's giving us three books by one he's buying three hundred dollars so I'm just going to enter three hundred dollars there but we're not going to pay tax on this because he's not an end user it's a wholesale transaction I don't know if Hawaii law allows you to do that or if what I'm teaching you how to do is an under-the-table transaction but in California that wouldn't be a taxable transaction okay so you've just given them the t-shirts I'll just call it get rid of inventory you're just liquidating you want out of this business you made support choices so you're going to take what cash you can get and get out of here so we'll save and close and it wants to spell again so I'm just going to ignore all and this time I go right to the bank and I drop that three hundred dollars there it is now we had another problem we had mr. Jensen who lost his check he wants a new check so I'm going to go to my checkbook and i'm going to write him a new check but before I do that I'm going to go over to his old check I'm going to right click on it and I'm going to void the check voiding the check means that if that check ever came up again it wouldn't be cashed basically I call the bank and say if check for comes ignoring and when you void a check and save it it gives you this option it can do a journal entry and a reversing journal entry to keep all of your accounting accurate because in accrual accounting just check well at the actual journal entry that happened when you gave them the check should stay put you don't undo it so I'll set yes if you're a cash basis person then probably do it differently so now we're going to go back to the checkbook and we're going to write them a new check and it's going to be inventory adjustment $25 real place check for I think it was alright so now one last thing to do we're going to reconcile form a so we keep the reconciliation I'm going to bring this down here it's now June second oh it's a Sunday what do you know okay and our closing balance is 350 799 our service charge is 250 and our interest earned is four cents so I'm going to continue and we know that we put the 300 in the bank somehow it didn't get on the bank's statement sometimes they hold checks you never know and this check number six we know that clear so now we've got a difference of 0 we've we've done everything correct we reconcile and we need that summary report okay so now we have the summary report for june i go up to file save as PDF quickbooks for june summary conciliation all right and finally that was your last transaction so we now go to reports and let's do the profit loss and we'll just stay we've started in January and went till end of June there we go now so we look at it you should see zero inventory adjustment okay the interest income was minor the bank service charges were minor the cost of goods sold was correctly 934 so we lost a ton of money essentially there's your net income 642 01 so I'm going to save this one as QuickBooks for income statement and I'm going to go look at my balance sheet now in I think it was June seconds here's the balance sheet now all we've got left to show for our thousand dollars that we invested in this business was 357 99 okay we started with a thousand we lost 642 of it but fortunately we've sold all of our inventory at the last minute and we got some of it back there are all of your sheets you'll upload those to be complete with homework number four and you have until april 9th to take your quickbooks test i encourage you to practice practice with a friend take that practice exam make sure you can do this by yourself without a video before you go take the test good luck