Department of Isdswestern Illinois University

Department of ISDSWestern Illinois University

IS 524Amaravadi

Lab project

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TP SYSTEMS –ACCOUNTING

Since 524 is a second year MBA course that focuses on IS applications, and you already have a background in information systems, you are expected to be able to learn new systems without too much training. Given that these days many systems have GUI interfaces to simply point and click, this should be manageable.

The objective of this assignment is to install and learn accounting software. In most accounting software you will have to define certain parameters with respect to the “organization” – these may be thought of as settings e.g. company address, work week, salary rates etc.

TASKS

Download and install the Quick Books package on your machine from Type Quick Books in the search engine.

Select the Quick Books Simple Start – Free Edition 2009 and click on Download Now. Allow plenty of time for the program to install (approx. 10-30 min).

Select the Icon Quick Books Simple Start that should appear on your desktop you are now ready to use the software.

Create a company

Select “Create a new Company file”. The following window should appear:

Enter the following information in the form:

Licea Mexicana Canadiense

200 Devon Avenue

Chicago, IL 60612

When asked what type of company you are entering in the system, for simplicity state “None”. You will be producing invoices in the future but no estimates and for the sake of simplicity we will not consider taxes for this assignment.

You can save the company profile in the file name it provides. Next it will ask if you need additional modules, which you won’t. Next it will present the main menu as follows.

We will now determine the beginning of the fiscal year click on “File” in your menu on top and select “Company information”. Note: If at any time you need to amend the Company information you can do it by returning to this section or by selecting “Preferences”.

Create a new sales item

We unfortunately cannot have a starting cash because we don’t have a bank account. Since the school receives fees from parents, we will setup an item called “fees” which is an income/sales item. Go to “Company” and “lists” and “item list” from the main menu.

Select and create a “new” item, add fees paid save and exit.

Create Customer list

Go to “Customer icon” from the flow diagram and add the following three customers. You don’t have to add anything more than the name:

SALES TRANSACTIONS

Transactions / Cash / Revenue / Expense / End Balance
6/1 / Starting cash / $100,000.00 / $100,000.00
6/1 / Fees paid – by Carmen Ramos / $1,200.00
6/5 / Fees paid – by Gomez Hernandez / $1,300.00
6/15 / Fees paid – by Ramon Glazer / $2,650.00 / $105,150.00

Create Sales

Go to the main flow diagram, “Sales Receipts” and select “new.” The following should appear, enter the sales transaction corresponding to Carmen, Gomez and then Ramon:

When done you should have the three sales transactions:

Create Expenses

We will now learn to enter new expenses paid by cash in the system. Select the Icon “Record Expenses”. The following should appear:

Enter the information relating to the first expense and click on “Record” at the bottom right of your screen when you`re done. Once the transaction is recorded you will notice a balance will appear at the end of the row.

EXPENSE TRANSACTIONS

Transactions / Cash / Revenue / Expense / End Balance
6/1 / Starting cash / $100,000.00
6/1 / Payroll Expenses Cathy Hernando / $1,300.00
6/2 / Rent to Capital Properties Inc. / $1,000.00
6/3 / Payroll Expenses to Mark Smith / $1,000.00
6/10 / Purchase uniforms/Supplies and material from Pro Uniforms / $2,400.00
6/15 / Purchase school supplies from Denver School Supplies / $1,356.50 / 92,943.50

Continue to enter the information for all expenses as listed in the table. Once you have entered and recorded all the expenses you can click on the “x” on the top right corner to return to the main screen.

View Profit and Loss

Go to the main flow diagram, “Profit and Loss.” The following should appear, do not print it. See how the expense items are listed. You are done!

Appendix 1 -DETAILS OF TRANSACTIONS

SALES TRANSACTIONS

EXPENSE TRANSACTIONS