Continuing Problem: All About You Spa

Continuing Problem: All About You Spa

QuickBooks Instructions

Chapters 3-5

Journalizing, Posting, Preparing a Trial Balance, Adjusting and Closing – The Accounting Cycle
Chapter 3 (p. 140 -142)

1. Getting Started

Save the All_About_You_Spa_ [Your Name].QBB data file to your computer. The QuickBooks data files are located on the textbook website. It is recommended that you set up a new folder for your QuickBooks files so they are easy to locate later. The QuickBooks problems for this text will use two types of QuickBooks files: The backup file (QBB) and the working file (QBW). Before you can start entering transactions into QuickBooks, you will need to convert the backup file (QBB) to a working file (QBW). This will be covered in Step 2. (You cannot click directly on a QuickBooks data file to open it. QuickBooks files must be opened from the QuickBooks program).

1. Restore the file All_About_You_Spa_[Your Name].QBB

From the File menu, click Open or Restore Company. SelectRestore a Backup Copy, then clickNext. Now selectLocal Backup andclick Next. Locate the QuickBooks backup file you saved inStep 1 (All_About_You_Spa_[Your Name].QBB).Click Open. When thewindow Where do you want to restore the file? appears, click Next. Select the location where you want to save your file. Insert your name in the All_About_You_Your Name]file as shown: All_About_You_Spa_John Doe. Note, you will now see (QBW) in the file type. Click SaveA message will appear that QuickBooks is being restored. When you see the following window: Your data has been restored successfully, click OK.

3. Modify Your Company Name

To identify your company data files and reports, insert your name into the Company Name. Select Company from the menu bar. Then select Company Information. Enter YOUR NAME (FIRST, LAST) in front of the existing company file name (example: John Doe All About You Spa). Click OK.

4. Your Chart of Accounts is pre-loaded in QuickBooks

To view the Chart of Accounts in QuickBooks, select Chart of Accounts from the Lists menu or click

on Chart of Accounts under Company from the home page. The Chart of Accounts for Chapters 3 -
5 is also available in the All About You Spa Continuing Problem located in your text on page 140.

5. Use the Year 2013 for the All About You Spa Continuing Problem

The date used for recording transactions and/or preparing reports is extremely important in
QuickBooks. If the correct month/day/year information is not used, it may be difficult to retrieve data
and reports will not reflect accurate information. For all QuickBooks problems in this text, we will use
the year 2013 for recording transactions and preparing reports.

6. Enter the June Transactions from pages 141 – 142 in the General Journal

From the Company menu, select Make General Journal Entries. If a message window appears regarding Assigning numbers to journal entries, click OK. Enter the date of the transaction in the Date field, or click on the calendar icon and select the date. Enter the transactions in date order

and remember to use 2013 as the year for all transactions. The box next to Adjusting Entry should be unchecked. Click in the Account column and select the account to be debited from the drop-down list. Tab to the Debit column and enter the amount. Tab to the Memo column and enter an explanation for the entry. Tab to the next row, in the Account field, select the account to be credited. Tab over and enter the amount in the Credit column. If the transaction involves Accounts Receivable or Accounts Payable, tab to(or click in) the Name column and select a customer or vendor from the drop-down list. Click Save and New to continue to the next transaction or Save and Close if you are finished entering transactions.

Customers for the Accounts Receivable Transactions in Chapter 3 are as follows:

• June 7th:Jill Anson $325.00
• June 14th:Jack Morgan $486.00
• June 21st: Tory Ligman $344.00
• June 30th: Judy Wilcox $109.00

Vendors for the Accounts Payable Transactions in Chapter 3 are as follows:

• For purchases of Spa Equipment, the vendor is Spa Equipment, Inc.
• For purchases of Office Equipment, the vendor is Superior Equipment .
• For advertising expenses, the vendor is Adco, Inc.
• For purchases of spa supplies, the vendor is Golden Spa Supplies.
• For purchases of office supplies, the vendor is Office Staples.

Remember that all of the current revenues for (Chapters 3-5) come from services. Record the revenues for the All About You Spa (Chapters 3-5) in Account 411, Income from Services.

The QuickBooks Chart of Accounts has some extra accounts that won’t appear in Chapters 3-5 All About you Spa Chart of Accounts. These will be discussed and used in later chapters, when All About You Spa expands into merchandising.

1. Prepare a General Journal Report

From the Reports menu, select Accountant & Taxes, and then Journal. When the Journal report
window appears, select June 1, 2013 in the From field and June 30, 2013 in the To field. Then click
the Refresh button (or press Enter). For some columns you may wish to expand the column width. Do
this by placing the cursor on any diamond between the column headers. When the cursor turns to a
cross, drag the cross to expand the width of the column. To print the report, click onthe Print button.
For all reports, when asked would you like to memorize this report, click No.

8. Make Corrections (if necessary)

Review your general journal entries. To make corrections, click the Previous button in the General
Journal window until the transaction you wish to correct appears. Make the needed changes and click
Save and New or Save and Close as appropriate. Click Yes when asked to verify the change. At
times you may need to delete or void an entry. Ask your instructor about their preference for removing
a QuickBooks entry. To delete an entry, right click while the cursor is anywhere in the entry and
select Delete General Journal (only the current entry will be deleted). Click Yes when asked to verify
the deletion. To void an entry, click Edit from the menu bar and then click Void General Journal.
Click Yes when asked to verify the void. Regenerate a general journal report after any corrections are
made.

9. Prepare a General Ledger Report

From the Reports menu, select Accountant &Taxes, and then GeneralLedger. When the General
Ledger report window appears, select June 1, 2013 in the From field and June 30, 2013 in the To
field. Then click the Refresh button (or press Enter). For some columns you may wish to expand the
column width. Do this the same as you did for the Journal report. To print the report, click on the
Print button.

10. Prepare a Trial Balance Report (unadjusted)

From the Reports menu, select Accountant & Taxes and then Trial Balance. When the Trial
Balance window appears, select June 1, 2013 in the From field and June 30, 2013 in the To field.
Then click the Refresh button (or press Enter). To distinguish the unadjusted trial balance from
others you will generate, click on Modify Report, and under the Header/Footertab,change the
report title to read Unadjusted Trial Balance, then click OK. To print the report, click onthe Print button.

11. Prepare an Income Statement

From the Reports menu, select Company & Financial and then Profit & Loss Standard. When the
Profit and Loss window appears, select June 1, 2013 in the From field and June 30, 2013 in the To
field. Then click the Refresh button (or press Enter). To print the report, click on the Print button.

12. Prepare a Statement of Owner’s Equity – (Ask Your Instructor If Required)

The statement of owner's equity is not a standard option in QuickBooks. Your instructor may or may
not want you to prepare a report that contains this information. If your instructor wants you to
prepare a Statement of Owner’s Equity, a customized Balance Sheet report can be used to display
this information. From theReports menu, select Company & Financial and then Balance Sheet Standard. When the Balance Sheetwindow appears, select June 30, 2013 in the As of field. Click
the Refresh button (or press Enter).Then click on Modify Report and the Filters Tab. In the
Account drop-down list, select All equity and income/expense and click OK. To distinguish this
report from others that you generate, youshould click on Modify Report, and under the
Header/Footertab,change the report title to read Statement of Owner’s Equity. Then click OK. To
print the report, click on the Print button.

13. Prepare a Balance Sheet Report

From the Reports menu, select Company & Financial and then Balance Sheet Standard. When
the Balance Sheet window appears, select June 30, 2013 in the As of field. Click the Refresh button
(or press Enter). To print the report, click on the Print button.

14. Save a Backup File of Your Work

From the File menu, select Save copy or backup. Select Backup copy and click Next. Select Local
backup and click Next. Select Save it now and click Next. Choose the drive/folder where you want
to save your work and enter a file name, such as Ch_3_ Spa_[Your Name], then click Save.
Submit your backup file to your instructor if requested.

Chapter 4 (p. 191-192)

15. Open or Restore the All About You Spa File CH_3_Spa_[Your Name

From the File menuor No Company Open window, click Open or Restore Company. The next
window will prompt you for What type of file do you want to open or restore? Select Open A
Companyif you are using the working file (QBW) saved to your computer as CH_3_[Your
Name].QBW. Select Restore a Backup Copy if you are using a backup file (QBB) saved to your
computer or remote device as CH_3_Spa_[Your Name].QBB. After selecting the type of file you
wantto open or restore, click Next. If you selected Open A Company, select your file, then click Open. Ifyou selected Restore a Backup Copy, follow the directions previously listed in Step 2and name your file CH_4_Spa_[Your Name].

16. Enter Adjusting Entries for June 2013 (p. 191)

Using the Unadjusted Trial Balance report and the adjustment information provided in the text, enter
the appropriate adjusting entries in the General Journal. For each adjusting entry, click the box next to
Adjusting Entry. You may also want to enter the description Adjusting Entry in the Memocolumn.

17. Prepare a General Journal Report

Same asStep 7.

18. Prepare a General Ledger Report

Same asStep 9.

19. Prepare an Adjusted Trial Balance Report as of June 30, 2013.

From the Reports menu, select Accountant & Taxes and then Trial Balance. When the Trial
Balance window appears, select June 1, 2013 in the From field and June 30, 2013 in the To field.
Then click the Refresh button (or press Enter). To distinguish this trial balance from others, click on
Modify Report, and under the Header/Footertab, change the report title to readAdjusted Trial
Balance, then click OK. To print the report, click on the Print button.

20. Prepare an Income Statement (after adjustment) for the month ended June 30, 2013

Same as Step 11.

21. Prepare a Statement of Owner’s Equity (after adjustment) for the month ended June 30, 201

Same as Step 12.

22. Prepare a Balance Sheet report (after adjustment) for the month ended June 30, 2013

Same as Step 13.

23. Save a Backup File of Your Work (before closing entries)

From the File menu, select Save copy or backup. Select Backup copy and click Next. Select
Local backup and click Next. Select Save it now and click Next. Choose the drive/folder in which
you want to save your work and enter a file name, such as Ch_4_Spa_[Your Name], and click
Save. Submit your backup file to your instructor if requested.

Chapter 5 (p. 236)

24. Open or Restore the All About You Spa File (CH_4_Spa_[Your Name]

Same as Step 15.

25. Journalize Closing Entries for June 2013

Using information from the adjusted Trial Balance report, enter the closing entries in the General
Journal. Be sure the box next to Adjusting Entry is not checked. For each entry, enter Closing
Entry in the Memo column.

26. Prepare a General Journal Report

Same as Step 7.

27. Prepare a General Ledger Report

Same as Step 9.

28. Prepare a Post-closing Trial Balance Report

From the Reports menu, select Accountant & Taxesand then Trial Balance. When the Trial
Balance window appears, select June 1, 2013 in the From field and June 30, 2013 in the To field.
Then click the Refresh button (or press Enter). To distinguish this trial balance from others you will
generate, click on Modify Report, and under the Header/Footertab, change the report
title to Post-Closing Trial Balance, then click OK. To print the report, click on the Print button.

29. Save a Post-closing Backup File of Your Work

From the File menu, select Save copy or backup. Select Backup copy and click Next. Select Local backup and click Next. Select Save it now and click Next. Choose the drive/folder in which you want
to save your work and enter a file name, such as Ch_5_ Spa_[Your Name, and click Save.

1. Save your Backup File

Be sure to keep a copy of your final backup file for future use with the All About You Spa continuing
problem or to submit to your instructor upon request.

College Accounting, 11e All About You Spa – CH 3-5 QuickBooks Instructions 1