Get Complete eBook Download by Email at discountsmtb@hotmail.com
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Get Complete eBook Download link Below for Instant Download:
https://browsegrades.net/documents/286751/ebook-payment-link-forinstant-download-after-payment
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Page i
Computer Accounting
with QuickBooks® Online:
A Cloud-Based Approach
Summer 2023 Release
Carol Yacht, MA
Software Consultant
Matthew Lowenkron, BSBA, EA
Glendale Community College
Logo: McGraw hill
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Page ii
Logo: McGraw Hill
COMPUTER ACCOUNTING WITH QUICKBOOKS ONLINE: A CLOUD-BASED APPROACH, SUMMER 2023
RELEASE
Published by McGraw Hill LLC, 1325 Avenue of the Americas, New York, NY 10019. Copyright 2023 by McGraw
Hill LLC. Updated December 2022. All rights reserved. Printed in the United States of America. Previous editions
©2021, 2018, and 2017. No part of this publication may be reproduced or distributed in any form or by any means, or
stored in a database or retrieval system, without the prior written consent of McGraw Hill LLC, including, but not limited
to, in any network or other electronic storage or transmission, or broadcast for distance learning.
Some ancillaries, including electronic and print components, may not be available to customers outside the United
States.
This book is printed on acid-free paper.
1 2 3 4 5 6 7 8 9 LMN 27 26 25 24 23 22
ISBN 978-1-264-13674-2 (bound edition)
MHID 1-264-13674-9 (bound edition)
ISBN 978-1-266-52201-7 (loose-leaf edition)
MHID 1-266-52201-8 (loose-leaf edition)
Portfolio Manager: Steve Schuetz
Product Developer: Amanda Lam
Marketing Manager: Claire McLemore
Content Project Managers: Jill Eccher, Emily Windelborn
Buyer: Susan K. Culbertson
Designer: Egzon Shaqiri; Beth Blech
Content Licensing Specialist: Sarah Flynn
Cover Image: Timofeev Vladimir/Shutterstock
Compositor: Straive
All credits appearing on page or at the end of the book are considered to be an extension of the copyright page.
The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does
not indicate an endorsement by the authors or McGraw Hill LLC, and McGraw Hill LLC does not guarantee the
accuracy of the information presented at these sites.
mheducation.com/highered
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Table of Contents
Page iii
Preface xvii
Acknowledgments xli
Chapter 1: QuickBooks Online Test-drive 1
Scenario 1
Objectives 1
System Requirements 2
Getting Started 2
Test Drive (sample company) Sign In 3
DAVE 4
User Interface 5
QBO Navigation 5
Dashboard 7
Account and Settings 12
Chart of Accounts 14
Export the Chart of Accounts (Account List) to Excel 19
Save the Chart of Accounts as a PDF file 20
Sign Out 21
Recent Transactions 21
Reports 24
Journal 25
Check Your Progress 26
Create an Invoice 28
Customer Invoice 28
Receive Payment 30
Income 31
Page iv
A/R Aging Summary 33
Transaction Detail by Account 34
Management Reports 35
Sales Receipt 40
Enter a Bill 41
Check 42
Journal Report 44
Sign Out or continue 44
Check Your Progress 2 45
QuickBooks Resources and Activities 45
Exercise 1-1 46
Exercise 1-2 48
Check Figures 49
Exercise 1-3 49
Certification Q&A Practice Test 49
Chapter 1 Index 50
Chapter 2: New Company Setup and the Chart of Accounts 53
Scenario 53
Objectives 53
Intuit’s Educator Portal 54
Getting Started 55
Create Your Account 56
User ID 57
Password 57
Account and Settings 61
QuickBooks Online Updates 65
Dashboard 65
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Navigation Bar 65
Account and Settings Preferences 70
Page v
Sign Out 75
Chart of Accounts 75
Sign In 76
Import the Chart of Accounts 76
Edit Default Accounts 80
Add New Accounts 82
Save Chart of Accounts (Account List) as a PDF File 85
Export the Chart of Accounts (AKA Account List) to Excel 86
Hyperlink to Student Accounts 86
Use QuickBooks Online on a Different Computer 88
Access Rights and User Roles 89
Audit Log 91
Check Your Progress 92
QuickBooks Resources and Activities 93
Exercise 2-1 94
Exercise 2-2 95
Check Your Chart of Accounts 95
Exercise 2-3 96
Certification Q&A Practice Test 96
Chapter 2 Index 97
Chapter 3: Beginning Balances and October Transaction Register 99
Scenario 99
Objectives 99
Getting Started 100
Check Your Data: Account List Or Chart of Accounts 100
Journal Entry 103
Account List 105
October Transaction Register 106
Check 106
Expense Account Distribution 109
Page vi
Account and Settings 109
Sales Receipt 111
Add Customer 112
Add Non-Inventory Product/Service 114
Cash Sales 116
Edit the Chart of Accounts 120
Sales Receipt Account Distribution 121
Bank Accounts 121
Transfer 122
Transfer Account Distribution 123
Dashboard > Business Overview 124
DAVE 124
Profit and Loss 124
Expenses 125
Invoices 125
Sales 126
Bank Accounts 126
Reports 128
Journal 128
Trial Balance 130
Profit and Loss 131
Balance Sheet 133
Audit Log 134
Editing a Transaction 135
Recent Transactions 135
Registers 136
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Check Your Progress 137
Sign Out or continue 139
QuickBooks Resources and Activities 139
Exercise 3-1 140
Exercise 3-2 142
Page vii
Check Figures 143
Exercise 3-3 143
Certification Q&A Practice Text 144
Chapter 3 Index 145
Chapter 4: Vendors and Inventory 147
Scenario 147
Objectives 147
Getting Started 148
Check Your Data 148
DAVE: Data Metrics and Visualization 149
October 30 Trial Balance 152
Account Reconciliation 153
Checking Account Register 154
October 31 Reconciliation Report 158
Trial Balance 159
Accounts Payable: Vendors 161
Vendors Page 162
Create New Checks 163
New Vendors 165
Vendor Contact List 168
Audit Log 170
Inventory Products and Services 171
Products and Services 171
Purchase Inventory on Account 173
Sold Inventory on Account 173
Products and Services List 182
Vendor Transactions 183
Enter Bills 183
Additional Transactions 185
Page viii
Reports 185
Journal 185
Transaction Detail by Account 187
Trial Balance 188
Inventory Valuation Summary 189
Vendor Balance Summary 190
A/P Aging Summary 191
Financial Statements 191
Profit and Loss 191
Balance Sheet 192
Statement of Cash Flows 192
Filter the Audit Log 194
Audit a Transaction 195
Check Your Progress 197
Sign Out 199
QuickBooks Resources and Activities 200
Exercise 4-1 201
Exercise 4-2 204
Check Figures 204
Exercise 4-3 205
Certification Q&A Practice Test 206
Chapter 4 Index 207
Chapter 5: Customers and Sales 209
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Scenario 209
Objectives 209
Getting Started 210
Check Your Data 210
DAVE: Data Metrics and Visualization 211
Expense Transactions 212
Page ix
Sales Transactions 213
Trial Balance 214
Customer Settings 215
Add Customers 217
New Customers 217
Customer Contact List 220
Customer Invoices 221
Sales Taxes 227
Taxes 228
Sales Returns: Customer Credit Memos 231
Accounts Receivable Register 233
Receive Payments from Customers 235
Account Reconciliation: November 20XX 238
Checking Account Register 239
November 30 Reconciliation Report 245
Advanced Search 247
Date Search 247
Transaction Type 248
Amount 249
Products and Services 250
Reports 251
Journal 251
Transaction Detail by Account 254
Trial Balance 256
A/R Register 257
Inventory Valuation Summary 258
Vendor Balance Summary 259
A/P Aging Summary 260
Sales Tax Liability Report 261
Profit and Loss 262
Page x
Profit and Loss Comparison 262
Balance Sheet 265
Customize Balance Sheet 266
Statement of Cash Flows 268
Filter the Audit Log 268
Audit a Transaction 269
Check Your Progress 270
Sign Out 272
QuickBooks Resources and Activities 272
Exercise 5-1 273
Exercise 5-2 277
Check Figures 278
Exercise 5-3 278
Certification Q&A Practice Test 279
Chapter 5 Index 280
Chapter 6: December Source Documents 283
Scenario 283
Objectives 283
Getting Started 284
Check Your Data 284
DAVE: Data Metrics and Visualization 285
Bank Accounts 286
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Expense Transactions 287
Sales Transactions 288
Trial Balance 289
Source Document Analysis 290
Reports 319
Customize Reports: Adding Comparison Columns 330
Customize Balance Sheet 334
Check Your Progress 337
Sign Out 339
Page xi
QuickBooks Resources and Activities 339
Exercise 6-1 340
Exercise 6-2 345
Check Figures 345
Exercise 6-3 346
Certification Q&A Practice Test 346
Chapter 6 Index 347
Chapter 7: Data Analysis and Reports—End of Fourth Quarter and Year 349
Scenario 349
Objectives 349
Adjusting Entries 350
Close the Books 351
Getting Started 352
Check Your Data 352
DAVE: Data Metrics and Visualization 352
Sales Tax Payments 355
End-of-Quarter Adjusting Entries 356
Filter the Profit and Loss 364
Dashboard Graphics 365
Balance Sheet and Statement of Cash Flows 367
Closing the Fiscal Year 370
Postclosing Trial Balance 373
Analyze Reports 374
Application Programming Interface (API) 374
Reports 375
List Reports vs. Balance or Totaled Reports 378
Customize Reports 379
Memorize a Report 379
Check Your Progress 380
Page xii
Sign Out 381
QuickBooks Resources and Activities 382
Exercise 7-1 383
Exercise 7-2 385
Check Figures, January 1, 20XY 386
Exercise 7-3 386
Certification Q&A Practice Test 387
Chapter 7 Index 388
Chapter 8: January Source Documents 391
Scenario 391
Objectives 391
Getting Started 392
Check Your Data 392
DAVE: Data Metrics and Visualization 392
January Source Documents 394
Reports 425
Check Your Progress 434
Sign Out 436
Get Complete eBook Download by Email at discountsmtb@hotmail.com
QuickBooks Resources and Activities 436
Exercise 8-1 437
Exercise 8-2 439
Check Figures 440
Exercise 8-3 440
Certification Q&A Practice Test 441
Chapter 8 Index 442
Chapter 9: February Source Documents 445
Scenario 445
Objectives 445
Getting Started 446
Page xiii
Check Your Data 446
DAVE: Data Metrics and Visualization 447
February Source Documents 451
Reports 478
Check Your Progress 488
Sign Out or continue 490
QuickBooks Resources and Activities 490
Exercise 9-1 491
Exercise 9-2 493
Check Figures 493
Exercise 9-3 494
Certification Q&A Practice Test 494
Chapter 9 Index 495
Chapter 10: March Source Documents and End of First Quarter 497
Scenario 497
Objectives 497
Getting Started 498
Check Your Data 498
DAVE: Data Metrics and Visualization 499
March Source Documents 502
Unadjusted Trial Balance, Sales Tax Liability Report, and Journal 537
End-of-Quarter Adjusting Entries 543
Reports 544
Check Your Progress 550
Sign Out or continue 552
QuickBooks Resources and Activities 552
Exercise 10-1 553
Exercise 10-2 555
Check Figures 556
Page xiv
Exercise 10-3 556
Certification Q&A Practice Test 557
Chapter 10 Index 558
Chapter 11: Employees and Payroll 561
Scenario 561
Objectives 561
Payroll Tasks 562
Payroll Forms 564
Payroll Taxes 565
Tax Information 565
Filing Payroll Forms 566
Getting Started 566
Employee Paycheck 575
Chart of Accounts 577
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Subscription Status 578
Tax Payments 578
Paycheck 1118 579
Journal 580
Paycheck History 580
Run Payroll 581
Check Your Progress 583
Sign Out 583
QuickBooks Resources and Activities 584
Exercise 11-1 585
Exercise 11-2 585
Check Figures 586
Exercise 11-3 586
Certification Q&A Practice Test 586
Chapter 11 Index 587
Page xv
Chapter 12: Certification, App, and Updates 589
Scenario 589
Objectives 589
QuickBooks Online User Certification 589
QuickBooks Online Certified User Chart 590
Getting Started 591
QuickBooks App Store 591
Mobile Apps 593
Updates and the QuickBooks Blog 595
Check Your Progress 598
QuickBooks Resources and Activities 598
Sign Out or continue 599
Exercise 12-1 599
Exercise 12-2 599
Exercise 12-3 600
Certification Q&A Practice Test 600
Chapter 12 Index 601
Case Problem 1: Your Name Accounting 603
Case Problem 2: Tacoma Computer Club 617
Appendix A: Troubleshooting 639
Appendix B: Glossary 639
Index 653
The Timetable for Completion on the next page is a guideline for lecture/discussion/ demonstration and hands-on
work. A typical 3-credit course is 45 hours (15 weeks x 3 hours per week). Work not completed within the hours shown
is homework.
Page xvi
TIMETABLE FOR COMPLETION
Chapter 1
QuickBooks Online Test-drive
Chapter 2
New Company Setup and Chart of Accounts
Chapter 3
Beginning Balances and October Transaction Register
Chapter 4
Vendors and Inventory
Chapter 5
Customers and Sales
Chapter 6
December Source Documents
Chapter 7
Data Analysis and Reports—End of Fourth Quarter and Year
Chapter 8
January Source Documents
Chapter 9
February Source Documents
Chapter 10
March Source Documents and End of First Quarter
Chapter 11
Employees and Payroll
Chapter 12
Certification, Apps, and Updates
Hours
3.0
3.0
3.0
3.0
3.0
3.0
3.0
4.0
3.0
4.0
3.0
2.0
Get Complete eBook Download by Email at discountsmtb@hotmail.com
TIMETABLE FOR COMPLETION
Case Problem 1 Your Name Accounting
Case Problem 2 Tacoma Computer Club
TOTAL HOURS
Hours
2.0
2.0
45.0
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Preface
Page xvii
Computer Accounting with QuickBooks Online: A Cloud-Based Approach, Summer 2023 Release, teaches how to use
QuickBooks Online (QBO1) software which is accessed via an Internet connection. The sign-in information included in this textbook
allows you to access QBO Plus (QBO+) for one year.
When data is stored “in the cloud,” it is accessible from the Internet and from web browsers instead of your computer’s hard
drive. Cloud software is always accessible, up-to-date and includes features like QuickBooks Desktop or other accounting software
installed locally on computers. QB Desktop files can be converted to QB Online.
WHY LEARN QUICKBOOKS?
QuickBooks software has a market share of 82%.
27 million businesses use QuickBooks.
QuickBooks is popular accounting software that allows business owners to track their income, expenses, and financial data.
QuickBooks helps business owners stay organized and on top of their finances.
QuickBooks Online is the number one cloud accounting software for small businesses. QBO provides an easy-to-understand
interface for students to grasp accounting concepts while learning cloud computing skills.
Evergreen
Content and technology are ever-changing, and it is important that you can keep your course up to date with the latest
information and assessments. That’s why we want to deliver the most current and relevant content for your course, hassle-free. This
product is moving to an Evergreen delivery model, which means it has content, tools, and technology that is updated and relevant,
with updates delivered directly to your existing McGraw Hill Connect® course. Engage students and freshen up assignments with upto-date coverage of select topics and assessments, all without having to switch editions or build a new course. We will have two
releases each year so you will have the most updated content before each new semester.
FEATURES AND BENEFITS
Page xviii
1.
NEW
With a one-year subscription to QuickBooks Online Plus, students set up three companies, enter transactions, track
income, expenses, customers, sales, create reports, and more. Students have access to their data anytime, anywhere with a
PC, Mac, tablet, or smartphone.
2.
NEW
Using the Educator Portal, professors can hyperlink to their students’ work.
3.
NEW
Data metrics and visualization: The acronym DAVE is used to identify QuickBooks Online’s Dashboard graphics. Numerical
data is changed into pictures using pie, bar, and line charts.
Data metrics
Analysis
Visualization
Evaluation
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Figure P-1: Expenses pie chart
NEW INTUIT’S EDUCATOR PORTAL
Intuit's Educator Portal provides professors the ability to send students an invitation for a one-year subscription to QuickBooks
Online Plus. Students complete work with four companies:
Chapter 1, the test-drive’s sample company, Craig's Design and Landscaping Services, includes populated data.
Chapters 2–12, Student Name Sales and Service.
Case Problem 1, Your Name Accounting.
Case Problem 2, Tacoma Computer Club.
Professors use the Portal to set up their class and invite their students to QBO+. In Computer Accounting with QuickBooks
Online, students set up three company accounts. A fourth company could be sent to students who need to start over.
Page xix
When professors start the Educator Portal, they set up their QuickBooks Online Accountant credentials. Educators and staff at
accredited academic institutions within the United States can access the free non-expiring QuickBooks Online Accountant version.
Professor’s sign into the Portal using their QBO Accountant credentials, add their class, send an invitation for QBO+ to their
student list, and add up to four blank companies. Students accept the QBO+ invitation, and complete work in Chapters 2 through 12.
Case Problems 1 and 2 include additional companies for hands-on practice.
In the textbook, Chapters 2 through 12 and Case Problems 1 and 2 include three companies for cloud accounting practice.
Company 1: Student Name Sales and Service is completed in Chapters 2 through 12.
Company 2: Your Name Accounting is Case Problem 1.
Company 3: Tacoma Computer Club is Case Problem 2.
With the cloud, the work completed in QBO is only a click away. Information is available wherever you are and with whatever
device you use—smartphones, tablets, Mac or PC desktop or laptop computers. An Internet connection is all that is needed.
1.
NEW
Computer Accounting with QuickBooks Online: A Cloud-Based Approach, Summer 2023 Release,includes access to the
QBO+ software for 12 months and hands-on practice with three companies.
1.
NEW
Connect: Connect is aligned with chapter work, and the end-of-chapter exercises. All Connect assignments are autograded and can be used for testing and evaluation purposes. Within Connect, one or more of the following may be assigned
for auto-grading and feedback.
Page xx
Get Complete eBook Download by Email at discountsmtb@hotmail.com
1.
2.
3.
4.
5.
6.
7.
8.
Check Your Progress.
Exercises X-1, X-2, and X-3.
DAVE problem solving.
Certification Q&A
Quizzes: multiple-choice and true or false questions.
Analysis questions.
Test bank.
Additional Student Resources.
Additional Student Resources (ASR)
The following resources can be found on the Additional Student Resources (ASR) page in Connect’s eBook. If you are not using
Connect, your instructor can provide you with an ASR page document that contains URLs to access these resources:
1.
2.
3.
4.
Access QBO Sign Up.
Narrated PowerPoints.
QBO Videos.
Text Updates.
1.
NEW
Figure numbers identify QuickBooks Online screen images.
1.
NEW
At the end of each chapter, there are three exercises, and a Certification Q&A practice test. Two end-of-chapter exercises
focus on transactions and reports. The third exercise is a problem-solving activity. The goal of the problem-solving exercise is
to improve critical thinking skills using the result of business processes, analyzing dashboard graphics, transactions, and
financial reporting. The Certification Q&A practice test is mapped to Certiport’s QBO exam objectives. Each chapter ends with
an index of chapter topics.
Page xxi
QuickBooks Online is:
Always up-to-date: The cloud automatically updates to the latest version so you always have the most current features.
Always secure: The cloud uses the same encryption as leading financial institutions so your data is safe. For example,
QBO uses the same technology used by banks and brokerage firms to transmit your private data over the Internet. Intuit trusts
the same system to submit millions of TurboTax returns every year.
Always backed up: The cloud keeps your data backed on Intuit’s web server. This means even if your computer has
problems, your data is still there. All you need to do is start an Internet browser to access your company.
Always accessible: The cloud lets you sign in from any place at any time so you can define your own schedule.
Web delivered: There are no software installation hassles. Sign in and get to work.
QUICKBOOKS ONLINE UPDATES
QuickBooks Online software is dynamic, meaning updates are a regular feature. This is like other online updates; for example,
banking apps, smartphone apps, and operating system updates. Most of the changes are more cosmetic than functional.
Updates may also change textbook screen illustrations. This makes students think more deeply about the online processes, and
may help students be flexible when figuring out differences between the software interface and the textbook steps and figures.
Page xxii
The authors suggest selecting
Updates, and the QuickBooks Blog.
from within QBO to resolve differences, check Text
ACCESS THE CLOUD
A high-speed internet connection is recommended, such as DSL or cable modem. You can use a slower connection, but it will
take longer to process data.
SYSTEM REQUIREMENTS
To use QuickBooks Online (QBO), sign in with a web browser. You can access QBO from any PC or Mac with an Internet
connection. You can open your QBO account in Windows 10 or 11. Make sure your browser is updated.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Recommended specs
Windows PC: Windows 10, Intel Core i5 or comparable processor (2015 or newer) with at least 4 GB of RAM. You need
Adobe Reader 11.0 or higher to print forms.
Mac: OS X “Panther” 10.13 or newer.
Internet connection: 3 Mbps or higher.
Minimum requirements
Windows PC: Windows 10, Intel Core i3 or a comparable processor (2013 or newer) with at least 2 GB of RAM.
Mac: OS X “El Capitan” 10.11 or newer.
Internet connection: 1.5 Mbps.
Page xxiii
Supported Browsers
Google Chrome: version 78 or newer. Intuit recommends Chrome.
Mozilla Firefox: version 76 or newer. Note: To preview and print forms on Mac OS, you'll also need the Firefox PDF plugin.
Microsoft Edge: version 75 or newer.
Safari: version 12 or newer (Mac only).
Opera: version 68 or newer.
Samsung: version 10 or newer.
Mobile Operating Systems
iPhones and iPads. For Apple products, iOS 11.1 or newer.
Android smartphones and tablets. For Android products, Nougat 7.1.1 or newer.
Other
For exporting reports to Excel, use Microsoft Excel 2010 or later. Adobe 11.0 or later for saving PDF files. The free Adobe
Acrobat Reader is available at https://get.adobe.com/reader/.
ACCOUNTING CONCEPTS
QuickBooks Online provides a selection of forms and lists to keep track of a company’s money and business activities. These
forms are used to create transactions. Transactions are accounted for using the system of double-entry accounting that works along
with the company’s general ledger.
At the core of the double-entry accounting system is the concept that every transaction involves at least two accounts. For
example, when a company sells a product its cash account increases and the asset account, called Merchandise Inventory,
decreases. Similarly, when a company makes a purchase such as office supplies, its cash account decreases and the expense
account, called Office Supplies & Software, increases.
Page xxiv
When the company sets up their financial records, they create a chart of accounts appropriate to their business activities. Once
set up, the chart of accounts is used as a point of reference each time two or more accounts are selected in order to post a
transaction to the general ledger. The QuickBooks Online User Interface uses transactions such as Invoices, Bills, Checks, etc., to
automatically maintain the general ledger and generate the appropriate reports.
1.
NEW
The diagram illustrates QuickBooks Online’s Application Programming Interface (API). The API diagram shows how
QBO processes data, and how accounting tasks are organized and interrelated.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Intuit Inc.
Figure P-2: QBO’s Application Programming Interface
Get Complete eBook Download by Email at discountsmtb@hotmail.com
TEXTBOOK FEATURES
Page xxv
Start your Internet browser to use the software. No desktop or hard-drive installation hassles.
Work with 4 companies: Chapter 1, the test drive's sample company, Craig's Design and Landscaping Services; Chapters
2–12, Student Name Sales and Service; Case Problem 1, Your Name Accounting; Case Problem 2, Tacoma Computer Club.
Use software anywhere/anytime from devices with Internet access.
Complete the QuickBooks Online test-drive (Chapter 1).
Sign in to QuickBooks Online with a unique user ID (valid email address) and password, or text code to your smartphone
(Chapter 2).
Set up a products and services company, chart of accounts, enter beginning balances (Chapter 3).
Journalize and post transactions and complete the accounting cycle for the fourth quarter (Chapters 4 through 6).
Journalize and pay end-of-quarter sales taxes, post adjusting entries, print financial statements, and complete the closing
process (Chapter 7).
Start the New Year, analyze source documents, complete the accounting cycle for the first quarter, and payroll and
employee transactions (Chapters 8 through 11).
1.
NEW
Sales Taxes and customized reports are included within Chapter 5, Customers and Sales.
1.
NEW
Chapter 11, Employees and Paychecks. Use QBO’s Core payroll app to complete employee and payroll transactions.
Page xxvi
1.
NEW
Chapter 12, Certification, Apps, and Updates. The certification exam’s objectives are mapped to each chapter, apps are
shown, and information about updates.
1.
NEW
Using Intuit’s Educator Portal, professors can invite students to up to four companies. In the textbook, three companies are
included. In case students needed to start over, a fourth blank company can be sent to students to start over.
1)
Company 1: Student Name Sales and Service is completed in Chapters 2 through 12.
2)
Case Problem 1, Your Name Accounting is a service business.
NEW 3) Case Problem 2, Tacoma Computer Club is a nonprofit business.
1.
NEW
Check Your Data: Chapters begin with Dashboard graphics and visualization, Sales and Expense Transactions, and a
Trial Balance so you can make sure you are starting with the appropriate transactions entered and correct account balances.
Read and follow the Stop sign information.
1.
Check Your Progress assignments review accounting processes and software features.
1.
Check Figures: After the chapter exercises, key figures are shown to make sure work is accurate.
1.
1.
Third Exercise, Problem Solving:Each chapter includes work within the chapter and three exercises at the end of the
chapter.
NEW
Certification Q&A Practice Test: To prepare for the QBO certification exam, complete the chapter’s practice test.
Page xxvii
In Computer Accounting with QuickBooks Online, Summer 2023 Release, you learn about the relationship between the software
and the accounting cycle. The diagram illustrates the QuickBooks Online accounting system.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Business processes are completed in this order.
Start your Internet browser and sign in to QuickBooks Online.
Set up the products and services company using the student’s first and last name sales and service.
Record transactions, post to the general ledger and subsidiary ledgers, and prepare reports.
Complete the accounting cycle for the fourth quarter and end the fiscal year. Complete the accounting cycle for the
first quarter of the next year.
Page xxviii
Once entries are recorded and checked for accuracy, posting is a click of the mouse. All entries are posted to the correct
accounts in the general ledger and account balances are calculated—fast, easy, and accurate. Think of it as a process where
journalizing and posting is the first step, then ledgers and financial statements are next. The diagram below illustrates this workflow
—the sequence of processes through which work passes from initiation to completion.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
FAVORITE QBO FEATURES
✓ Access on multiple devices
✓ Online access anytime, anywhere
✓ Backup data automatically on Intuit’s web server
✓ Track income and expenses
✓ Create estimates and send invoices
✓ Export data to Excel; import data from Excel into QBO
✓ Save reports as PDF files
✓ Email reports
✓ Manage and pay bills from vendors
✓ Enter bills and schedule payments
✓ Control what users can access
✓ Create and send purchase orders
✓ Track inventory
✓ Categorize income and expenses
✓ More than 65 built-in reports
Computer Accounting with QuickBooks Online: A Cloud-Based Approach, Summer 2023 Release, includes 12 chapters and 2
case problems. Students work with four companies.
Page xxix
In Chapter 1, the test-drive’s sample company, Craig’s Design and Landscaping Services, is used.
In Chapters 2 through 11, students complete work with a products and services business. For the company name, students
type their first and last name Sales and Service.
In Chapter 11, students download the Core Payroll app, add an employee, complete paychecks, and payroll reports. The
free payroll app can be used for 30 days.
In Chapter 12, Certification, Apps, and Updates. Learn about QuickBooks Online User Certification, apps, and updates.
Case Problem 1, Your Name Accounting. Set up and complete the accounting cycle for a service business.
Case Problem 2, Tacoma Computer Club. Set up and complete the accounting cycle for a nonprofit organization.
Included with Computer Accounting with QuickBooks Online: A Cloud-Based Approach, Summer 2023 Release, is 12 months of
access to the Internet-delivered software, QuickBooks Online Plus. In Chapters 2 through 12, students work with a products and
services company. For the company name, students use their first and last name Sales and Service.
After the company is set up and beginning balances are entered, the accounting cycle is completed for the fourth quarter and first
quarter of the next year. Source documents are used for real-world accounting practice. For 12 months, students can sign in to their
company from any device with internet access.
Each chapter begins with a scenario. The chapter scenarios are descriptions of the work that is completed. The Chapter 2
scenario is shown as an example.
Scenario: In Chapter 2, accept the invitation for a one-year subscription to QuickBooks Online Plus (QBO+). This chapter
includes setting up a new company, Student Name Sales and Service. After changing account and settings, import a chart of
accounts, save your work, and complete the end-of-chapter exercises. To see the work accomplished, display an Audit Log. The
Objectives specify the work that is completed in Chapter 2.
CHAPTERS, CASE PROBLEMS, AND APPENDICES
Page xxx
Chapter 1: QuickBooks Online Test-drive
To learn about QBO, use the sample company, Craig’s Design and Landscaping Services, which includes populated data. To
start the sample company, go online to https://qbo.intuit.com/redir/testdrive. The sample company is used to explore the software
Get Complete eBook Download by Email at discountsmtb@hotmail.com
interface rather than to test accounting knowledge. The subsequent textbook chapters and case problems show you how to set up a
products and services company, a service company, and a nonprofit organization.
1.
NEW
Management reports are displayed: Company overview, Sales Performance, and Expenses Performance.
1.
Chapter 2: New Company Setup and Chart of Accounts
To begin, accept the emailed invitation for QBO+ from your professor. After setting up your account and completing
information about your company, start using QuickBooks Online.
1.
NEW
In Chapter 2, set up a products and services company using your first and last name Sales and Service. After navigating
the Dashboard and learning about its graphic features, complete account settings, and import the Chart of Accounts. The
Chart of Accounts is exported to Excel and saved as a PDF file.
1.
Chapter 3: Beginning Balances and October Transaction Register
In Chapter 3, you continue using your company. After entering beginning balances, record cash sales, write checks, and
display reports, financial statements, and the audit log. Reports are exported to Excel and saved as PDF file.
Page xxxi
1.
Chapter 4: Vendors and Inventory
In Chapter 4, add vendors and inventory and complete accounts payable transactions for November. Record vendor
purchases of inventory on account, make vendor payments, display accounts payable reports, display financial statements,
filter the audit log, and complete account reconciliation. Reports are exported to Excel and saved as PDF file.
1.
Chapter 5: Customers and Sales
In Chapter 5, you add customers and complete accounts receivable transactions. You record customer sales on account,
receive payments from customers, display accounts receivable reports and financial statements, and complete account
reconciliation. Reports are exported to Excel and saved as PDF files.
1.
NEW
Sales taxes for customers within the county and state, and customized reports.
1.
NEW
Chapter 6: December Source Documents
In Chapter 6, you analyze source documents, then record transactions. The source documents trigger transaction analysis
for accounts payable (vendors), inventory, accounts receivable (customers), cash and credit card sales, checks for expenses,
and account reconciliation. Reports are saved as PDF files and exported to Excel. Complete comparative financial reports:
Custom Balance Sheet and Profit and Loss by month.
1.
Chapter 7: Data Analysis and Reports—End-of-Fourth Quarter and Year
In Chapter 7, complete transactions for the end of the fourth quarter and the end of the year. At the end of December,
complete adjusting entries, print the adjusted trial balance, print financial statements, and close the fiscal year. Reports are
exported to Excel and saved as PDF files.
Page xxxii
1.
NEW
Recognize how QBO’s modules are used within its Application Programming Interface system design.
1.
1.
NEW
Display the company snapshot and transaction volume.
1.
Chapter 8: January Source Documents
January source documents are analyzed for transaction entry. The source documents prompt transaction analysis for
issuing checks, accounts payable, inventory, accounts receivable, and cash and credit card sales. You also use the January
31 bank statement to reconcile Account 101 Checking. The general ledger accounting cycle is completed for the first month of
the new year.
1.
Chapter 9: February Source Documents
After analyzing source documents, you complete transactions. You also use February’s bank statement to reconcile the
checking account.
1.
Chapter 10: March Source Documents and End of First Quarter
Using March’s source documents, you analyze source documents, complete account reconciliation, record first-quarter
adjusting entries, and prepare financial statements. You also use March’s bank statement to reconcile the Account 101
Checking.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
1.
NEW
Chapter 11: Employees and Payroll
To complete employee and payroll transactions, use QBO's Core payroll app. The Core payroll app is free for 30 days.
Page xxxiii
1.
NEW
Chapter 12: Certification, Apps, and Updates
In this chapter, the QBO User Certification is explained. Students learn about additional QBO applications, and updates.
Computer Accounting with QuickBooks Online: A Cloud-Based Approach, Summer 2023 Release, ends with two case
problems.
Case Problem 1: Your Name Accounting. Accept the emailed invitation for Company 2. Students set up and complete
transactions for a service business.
Case Problem 2: Tacoma Computer Club. Accept the emailed invitation for Company 3. Students set up and complete
transactions and reports for a nonprofit business.
Appendix A: Troubleshooting—Tips and suggestions for workarounds are shown in the Troubleshooting appendix.
Appendix B: Glossary—Words that are italicized and boldfaced in the textbook are defined in the glossary.
Index: Each chapter ends with an index. At the end of the textbook, there is a complete index.
CONVENTIONS USED
As you work through Computer Accounting with QuickBooks Online: A Cloud-Based Approach, Summer 2023 Release, read and
follow the step-by-step instructions. Numerous screen illustrations and Figures help you check your work. The following conventions
are used in this textbook.
Page xxxiv
1.
2.
3.
Dates are shown with XXs, for example, 10/1/20XX. Substitute the current year for the XXs. Substitute next year for 20XY.
Information that is typed appears in boldface; for example, Type Prepaid Insurance in the ACCOUNT field.
Figure numbers identify QBO screen images; for example:
Figure P-3: Search
4.
5.
1.
1.
Keys on the keyboard that should be pressed appear in angle brackets, for example, <Tab>.
Acronym, buttons, and icons are included in the textbook.
NEW
Data Analytics—The process of systematic information collection. When transactions are recorded, the Dashboard’s
Business overview shows the impact on images; for example, bar and pie graphs, and line charts. Data results are shown
graphically on Sales (line chart), Profit and Loss and Invoices (bar graph), and Expenses (pie chart).
NEW
DAVE identifies Dashboard graphics. To demonstrate, a Sales line chart is shown.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Figure P-4: Sales line chart
Page xxxv
Data metrics
Analysis
Visualization
Evaluation
To remind you to check data, a cloud icon is used. Make sure you are
starting with the correct transactions, data graphics, and report balances.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Before continuing, make sure you compare your work with the figures illustrated.
Create transactions
Gear to go to account and settings
Search transactions and recent transactions
Help
Navigation bar selection for Dashboard or Home page
Page xxxvi
6.
Step sequences are separated by a greater-than sign. Examples:
Click
7.
8.
> Chart of Accounts.
> in the Search field, type and select Account List.
Go to
Read the information next to the stop sign. For example, in Chapter 4, the stop sign information includes this information.
When inputting data for a transaction, this image is shown next to the date and description.
Date
Description of Transaction
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Date
Description of Transaction
The owner invested $50,000 cash along with $10,000 in computer equipment in the company in
10/1/20XX
exchange for common stock.
9.
10.
Continue work completed in the chapter with the end-of-chapter exercises. This image is shown next to the first end-ofchapter exercise.
Indicates the third end-of-chapter exercise, Problem Solving activities.
Page xxxvii
Get Complete eBook Download by Email at discountsmtb@hotmail.com
11.
Each chapter includes a Certification Q&A practice test. The practice test is mapped to the Exam Objectives on the
Certified User Online Certification test. The Certification Q&A practice test is included within Connect.
12.
Diagrams illustrate QBO processes.
Figure P-5: QBO Process Diagram
FYI, COMMENTS, AND TROUBLESHOOTING
In each chapter, there are FYI boxes, comments and troubleshooting tips. The end-of-chapter index includes the page numbers
for chapter section titles and subtitles, glossary words that are boldfaced and italicized, FYI boxes, comments, and troubleshooting.
An example of an FYI box follows. Read the information.
CLEARING CACHE AND COOKIES
Deleting cache and cookies is a good way to start the browser with a clean slate. The steps are different depending on which
browser is being used. Refer to Appendix A, Troubleshooting, Clear Cache and Cookies.
KEYBOARD SHORTCUTS AND COMPANY ID
You can use the keyboard instead of a mouse or trackpad to save time. To help speed you through common tasks and workflows,
QBO has many keyboard shortcuts. To see the keyboard shortcuts and company ID, from any QBO screen, for Windows press
<Ctrl>+<Alt>+<?>; for Mac press <Ctrl>+<Option>+?.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Page xxxviii
Instructors: Student Success Starts with You
Tools to enhance your unique voice
Want to build your own course? No problem. Prefer to use an OLC-aligned, prebuilt course? Easy. Want to make changes
throughout the semester? Sure. And you’ll save time with Connect’s auto-grading too.
Laptop: McGraw Hill; Woman/dog: George Doyle/Getty Images
Study made personal
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Incorporate adaptive study resources like SmartBook® 2.0 into your course and help your students be better prepared in less
time. Learn more about the powerful personalized learning experience available in SmartBook 2.0 at
www.mheducation.com/highered/
connect/smartbook
Affordable solutions, added value
Make technology work for you with LMS integration for single sign-on
access, mobile access to the digital textbook, and reports to quickly
show you how each of your students is doing. And with our Inclusive
Access program you can provide all these tools at a discount to your
students. Ask your McGraw Hill representative for more information.
Padlock: Jobalou/Getty Images
Page xxxix
Solutions for your challenges
A product isn’t a solution. Real solutions are affordable,
reliable, and come with training and ongoing support
when you need it and how you want it. Visit
www.supportateverystep.com for videos and resources
both you and your students can use throughout the
semester.
Checkmark: Jobalou/Getty Images
Students: Get Learning that Fits You
Effective tools for efficient studying
Connect is designed to help you be more productive with simple, flexible, intuitive tools that maximize your study time and
meet your individual learning needs. Get learning that works for you with Connect.
Study anytime, anywhere
Download the free ReadAnywhere app and access your online eBook, SmartBook 2.0, or Adaptive Learning Assignments
when it’s convenient, even if you’re offline. And since the app automatically syncs with your Connect account, all of your work is
available every time you open it. Find out more at www.mheducation.com/readanywhere
“I really liked this app—it made it easy to study when you don’t have your textbook in front of you.”
- Jordan Cunningham, Eastern Washington University
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Calendar: owattaphotos/Getty Images
Everything you need in one place
Your Connect course has everything you need—whether reading on your digital eBook or completing assignments for class,
Connect makes it easy to get your work done.
Learning for everyone
McGraw Hill works directly with Accessibility Services Departments and faculty to meet the learning needs of all students.
Please contact your Accessibility Services Office and ask them to email accessibility@mheducation.com, or visit
www.mheducation.com/about/accessibility for more information.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Top: Jenner Images/Getty Images, Left: Hero Images/Getty Images, Right: Hero Images/Getty Images
Get Complete eBook Download by Email at discountsmtb@hotmail.com
About the Authors
Page xl
Carol Yacht, carol@carolyacht.com, is an educator and author of computer accounting textbooks: QuickBooks
Online, 4/e, and eBook releases; QuickBooks Desktop (10/e); and Sage Peachtree (21/e). Carol taught on the faculties
of California State University-Los Angeles, West Los Angeles College, Yavapai College, and Beverly Hills High School.
She started using accounting software in her classes in 1980. Carol’s teaching career includes accounting courses,
accounting information systems, and computer accounting. Since 1989, Carol’s textbooks have been published by
McGraw-Hill.
In 2021, Carol received the American Accounting Association’s Teaching, Learning and Curriculum section’s
Lifetime Service Award. Carol serves on TLC’s research, instructional, and hall of honor award committees, and was
the editor of the Accounting Educator. She also served as an officer of the AAA’s Two-Year College section. In 2005,
she received TYC’s Lifetime Achievement Award.
Carol is a board member of the Microsoft Dynamics Academic Alliance, worked for IBM Corporation as an
education instruction specialist, and works for Intuit and Sage as a consultant. Carol earned an MA degree from
California State University-Los Angeles, BS degree from the University of New Mexico, and AS degree from Temple
University.
Matthew Lowenkron, matty_az@msn.com, is a full-time instructor at Glendale Community College. He teaches
QuickBooks Online, Financial and Managerial Accounting, Statistics, Business Communication, and Income Tax
Preparation. Matthew coauthors Computer Accounting with QuickBooks Online: A Cloud-Based Approach, 4e, and
eBook releases; and Computer Accounting Essentials with QuickBooks 2021, 10e. Previous to teaching, Matthew
worked as a tax accountant and is an Enrolled Agent. Matthew earned his BSBA degree in Management at Northern
Arizona University, and completed his post-baccalaureate in Accounting at Arizona State University.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Acknowledgments
Page xli
I would like to thank the following McGraw-Hill colleagues for their help in the preparation of this book: Steve
Schuetz and Amanda Lam.
A special thank you to the Inuit Education Team, and the following professors.
Perry Adkins, MO Western State Univ.
Nathan Akins, Chattahoochee Technical College
Kim Anderson, Elgin CC
Richard Andrews, Sinclair CC
Julia Angel, North Arkansas College
Gary Becker, Casper College
Jeanne Bedell, Keiser University
Erick Bell, Las Positas College
Edward Bennett, University of Alaska Matsu College
J. Britt Blackwell, Central CC
Daniel Boylan, Purdue University
Fort Wayne
Angi Bruns, Baton Rouge CC
Shifei Chung, Rowan University
Ann Clark, VA Western CC
Thomas Cline, Germanna CC
Jennifer Coon, Tyler Junior College
John Daugherty, Pitt CC
Kim Day, Southeast CC
Erin Dischler, Milwaukee Area Tech.
Nichole Dauenhauer, Lakeland CC
Brad Fader, Shoreline CC
Steven Flouhouse, Ashland Tech.
Lauren Gibbs, CC of Vermont
Annie Gilmore, George Stone Tech.
Amy Haas, Kingsborough CC
Julie Hamilton, University of Alaska Southeast
Diane Henderson, Southside VA CC
Bonny Herndon, SW Texas Jr. College
Zach Houk, Des Moines Area CC
Jeff Jackson, San Jacinto College
Adrian Jarrell, Forsyth Tech. College
Sophia Ju, Edmonds CC
Christine Kloezeman, Cal. State LA
Amber Lamadrid, Mt. Hood CC
Kelly Lemons, CC of Baltimore County
Steve Loflin, Augusta University
Margarita Lenk, Colorado State Univ.
Jennifer Lyons, National Park College
Juan Mao, Univ. of TX San Antonio
Sarah Mathews, Cowley College
Anita McKie, Strayer University
Paul McLester, FL State Jacksonville
Julie Miller Millmann, Chippewa Valley Technical College
Susan Miller, County College of Morris
Tom Miller, California State Fullerton
Page xlii
Rita Mintz, Calhoun CC
Rania Mousa, University of Evansville
Terry Mullins, Cabrillo College
Johnna Murray, Univ. of MO St. Louis
Barry Palatnik, Stockton University
Lori Parry, Eastern Gateway CC
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Paige Paulsen, Salt Lake CC
Raquel Pernia, Essex County College
Michelle Randall, Schoolcraft College
Scott Recht, Gallaudet University
Joe Reeves, Edgecombe CC
Renee Richard, Pima CC
Erica Robinson-Pugh, Miller Motte College
Silvia Romero, Montclair State Univ.
Anne Shawver, Radford University
Geraldine Stewart, Northern VT Univ.
Sylvia Summers, Tacoma CC
Erica Teague, Gwinnett Technical Coll.
Melanie Thomas, Wake Technical Coll.
Linda Wallace, Virginia Tech
Stephanie Weidman, Rowan University
Jo Welker, College of Western Idaho
JoAnn Wood, Boise State University
Teresa Worthy, Gaston College
Dawn Wright, Ozarks Technical CC
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Chapter 1
QuickBooks Online Test-drive
Page 1
Scenario: In Chapter 1, you use the test drive’s sample company, Craig’s Design and Landscaping Services. The
test drive company sells landscaping products, purchases inventory from vendors, and provides customers with
landscaping services. In this chapter, you learn how to navigate the QuickBooks Online user interface, enter journal
transactions, and display and save reports. The objectives that follow specify the work completed.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
OBJECTIVES
1.
2.
3.
4.
5.
6.
7.
8.
9.
Start the sample company, Craig’s Design and Landscaping Services.
Tour QuickBooks Online (QBO) and the user interface.
View recent transactions and reports.
Create an invoice, sales receipt, bill, and write checks.
Export reports to Excel and save as PDF files.
Display Management reports.
Complete Check Your Progress.
Review and complete QuickBooks Online Resources and Activities.
Complete Exercises 1-1, 1-2, 1-3, and Certification Q&A practice test.
The screens that are shown in the textbook may differ from what you see. Each time you sign into
QBO, the software is the most current version. If you notice updates to Chapter 1, go online to Additional Student
Resources > Text Updates. Updates occur on a regular basis. That is the nature of internet-delivered software.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
SYSTEM REQUIREMENTS
Page 2
To use QuickBooks Online (QBO), sign in with a web browser. You can open your QBO account in Windows 10 or
11. Make sure your browser is updated.
Recommended specs: Windows version page, Mac version page
Windows PC: Windows 10, Intel Core i5 or comparable processor (2015 or newer) with at least 4 GB of
RAM. You need Adobe Reader 11.0 or higher to print forms.
Mac: OS X “High Sierra" 10.13 or newer.
Internet connection: 3 Mbps or higher.
Minimum requirements
Windows PC: Windows 10, Intel Core i3 or a comparable processor (2013 or newer) with at least 2 GB of
RAM.
Mac: OS X “El Capitan” 10.11 or newer.
Internet connection: 1.5 Mbps.
Supported Browsers
Google Chrome: version 78 or newer. Intuit recommends Chrome.
Mozilla Firefox: version 76 or newer. To preview and print forms on Mac OS, you need Firefox PDF plugin.
Microsoft Edge: version 75 or newer.
Safari: 12 or newer (Mac only).
Opera: version 68 or newer.
Samsung: version 10 or newer.
Mobile Operating Systems
iPhone/iPad: For Apple products, iOS 11.1 or newer.
Android smartphones and tablets: For Android products, Nougat 7.1.1 or newer.
Other
For exporting reports to Excel, use Microsoft Excel 2010 or later. Adobe 11.0 or later for saving PDF files. The free
Adobe Reader is available at https://get.adobe.com/reader/.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
GETTING STARTED
Page 3
To access the test-drive’s sample company, Craig’s Design and Landscaping Services, follow these steps. In the textbook, click
or select are both used. For example, when choosing Navigation bar items or QuickBooks Online buttons, the step says click
or select
.
Test Drive (sample company) Sign In
In Chapter 1, you use the sample company, Craig’s Design and Landscaping Services. Follow these steps to start the sample
company.
1.
2.
Start your Internet browser.
Go online to https://qbo.intuit.com/redir/testdrive. Each time you start the test drive, a new session begins. Data is not
saved.
Figure 1-1: I’m not a robot
Intuit Inc.
3.
Complete the Security Verification > click <Continue>. The Dashboard or Home page appears for the sample company,
Craig’s Design and Landscaping Services. Depending on what day you signed in your screen may differ. As of this writing, the
author’s Dashboard looks like the one below. The Dashboard’s default is Getting things done. Figure 1-2 shows an example of
the Dashboard's Getting things done screen.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Figure 1-2: Dashboard or Home page
Intuit Inc.
Page 4
. Data metrics and data visualization in the form of bar graphs, pie charts, and
Select
line graphs are shown for Invoices, Expenses, Profit and Loss, and Sales. Current Bank accounts are also displayed. As of this
writing, here’s what the Dashboard’s Business overview looks like. Your Dashboard overview may differ because the data is based
on the date you started the sample company.
A recent QBO update includes a Cash Flow forecast above the Dashboard graphics. Each time you sign into the test-drive, the
current month, day, and year data displays. Depending on when you signed in, your Cash Flow Forecast differs from Figure 1-3A.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Intuit Inc.
Figure 1-3A: Cash flow forecast
Intuit Inc.
Figure 1-3B: Data metrics and visualization
The acronym DAVE is used to identify QuickBooks Online’s Dashboard graphics. Numerical data is changed into pictures using
bar, pie, and line charts. Figure 1-3B shows an example of DAVE.
Data metrics
Analysis
Visualization
Evaluation
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Page 5
Refer to Appendix B, Glossary, for definitions of these terms. The Glossary is also a link within Connect’s eBook.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Get Complete eBook Download link Below for Instant Download:
https://browsegrades.net/documents/286751/ebook-payment-link-forinstant-download-after-payment
Get Complete eBook Download by Email at discountsmtb@hotmail.com
USER INTERFACE
A user interface (UI)1 is the link between a user and the software. On the left side, QuickBooks Online includes a Navigation bar.
The Dashboard is the default. Defaults are automatic settings. The Navigation bar lists QBO’s main features.
When QuickBooks Online updates, the Navigation bar may change. As of this writing, the test drive’s Navigation bar includes
these selections—Dashboard, Banking, Sales, Customers & leads, Cash flow, Expenses, Payroll, Time, Reports, Taxes, Mileage,
Accounting, and My Accountant. Regularly check QBO changes at Text Updates. Another way to learn about updates is the
QuickBooks blog at https://quickbooks.intuit.com/r/.
QBO Navigation
1.
Use the Navigation bar to access screens or forms within QBO.
2.
Use the plus sign
to create transactions.
Figure 1-4: Create transactions
Intuit Inc.
3.
Use the magnifying glass for Search
Recent Transactions. Your dates will differ.
Page 6
Tips and Recent Transactions. Figure 1-5 shows the author’s
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Figure 1-5: Search
Intuit Inc.
4.
Use gear
for Your Company, Lists, Tools, and Profile.
Figure 1-6: Gear > Account and settings
Intuit Inc.
1 hour to 3 hours: To use the Test Drive’s sample company data for more than 1 hour, select Account and settings >
> in the Other preferences area, click on the pencil icon
> click on the down
Get Complete eBook Download by Email at discountsmtb@hotmail.com
arrow next to 1 hour > select 3 hours > click <Save> > then <Done>.
Page 7
Figure 1-7: Advanced > Other preferences > 3 hours
Intuit Inc.
After selecting Save and Done, you are returned to the Dashboard.
The screens that are shown in the textbook may differ from what you see. Each time you sign into QBO, the most
recent version displays. The test-drive or sample company date is the current month, day, year.
5.
The question mark
is used for QBO self-help. To close Help, click <X>.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
DASHBOARD
After signing into QuickBooks Online, the Dashboard displays. The Dashboard provides a starting point that allows access to all the
features of QBO. The Dashboard’s Business overview includes a picture of the current status of Profit and Loss, Expenses, Income, Sales,
and Banking activities. When you enter transactions, the values change, displaying a real-time overview of your company.
Page 8
1.
If necessary, click
> Business overview. Review the Bank accounts section—Checking,
Savings, Mastercard, Visa. (Hint: This information reflects the day the author signed in. Your amounts may differ.)
Figure 1-8: Bank accounts
Intuit Inc.
2.
In the Bank accounts section, drill down on Checking. A "Your bank connection is all set" message appears > you can watch the
video and take a guided tour > click <X> when through. The Checking, Savings, and Mastercard data appears. (Hint: Your amounts
may differ.) The number of transactions is also shown.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Figure 1-9: Checking, Savings, Mastercard amounts
Intuit Inc.
As of this writing, checking shows 25 transactions. To see them, scroll down.
Page 9
3.
Drill down on Savings to see one transaction.
4.
Drill down on Mastercard to see 7 transactions.
Profit and Loss
To see the Profit and Loss statement for Craig’s Design and Landscaping Services, go to the
1.
.
The Profit & Loss area includes Net Profit for Last month. If not, click on the down-arrow > select Last month.
Figure 1-10: Profit & Loss
2.
Click on the Income bar > the current month is shown. (For the author, that’s Since September 1, 2021).
Another way to go to the P&L is to select
from the Navigation bar > from the Favorites list, select
Profit and Loss > for the Report period, select Since 30 Days Ago > click
. (Hint: You may need
to scroll up to see the Report period field. The author’s date is 09/01/2021; your date will differ.)
The Profit and Loss report discloses profitability. The P&L shows money you earned (income) and money you spent (expenses)
so you can see how profitable you are. The P&L report is also called an income statement. In Figure 1-11, the P&L shows the
amount of income Craig’s Design and Landscaping Services earned, and the expenses the company incurred.
Page 10
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Figure 1-11: Profit and Loss
Intuit Inc.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Export to PDF was selected to display the P&L report. Your
totals may differ.
Page 11
QuickBooks Online updates automatically. When you sign into the test drive, the latest version of the sample company,
Craig’s Design and Landscaping Services, is shown. Software updates improve QBO’s features and functions. Some screen images may
change. Regularly check Text Updates.
If you displayed the Profit and Loss’s PDF, click <X> on the Profit and Loss report, then select the
logo to return to the Dashboard.
Start Invoicing
1.
2.
> Invoice (in the Customers list).
Select
A blank invoice appears. At the bottom of the Invoice screen, there is a selection for Customize. Click Customize > New Style.
1.
2.
Click
.
Helvetica 10pt is the default. Select 12 pt. to enlarge the fonts on the invoice.
Observe that the fonts on the Invoice increased. Depending on the day you logged in, your Invoice may differ.
Page 12
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Figure 1-12: Invoice
Intuit Inc.
3.
To close, click
. Click <X> to close the Invoice.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
ACCOUNT AND SETTINGS
The gear icon includes settings and preferences for your company. The gear selections are Your Company, Lists, Tools, and
Profile. For example, you can change Account and settings, Manage users, access All lists, Import data, and go to the Audit Log.
Page 13
1.
2.
3.
4.
Click
> Account and settings.
Account and Settings defaults to
type, Contact info, Address, and Communications with Intuit.
Click
. This includes the Company name, Company
. Review the information.
In the Chart of accounts area, select the pencil icon
. To include account numbers, toggle Enable account numbers
to On (color changes from gray to green) > click on the box next to Show account numbers to put a checkmark.
Figure 1-13: Enable and Show account numbers
Intuit Inc.
5.
Click
.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
6.
7.
Make sure
is selected. In the Other preferences area, you can increase the number
of hours your company is active. The default is 1 hour.
Page 14
Click on the pencil icon to edit
. In the Sign me out if inactive for field, select 3 hours.
Figure 1-14: 3 hours
Intuit Inc.
Comment: If you plan to spend time working on Chapter 1, make this selection. Otherwise, you are automatically signed
out after 1 hour. Each time you sign into the sample company, the populated data starts fresh. Data is not saved between sign
ins.
8.
Click
> then
.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
CHART OF ACCOUNTS
The chart of accounts, also called the account list, is a complete list of a business’s accounts and their balances. The chart
of accounts includes two categories of accounts:
Page 15
Balance Sheet accounts: In QBO, these types of accounts reflect what you own and what you owe, like Bank, Credit
Card, Assets, Liabilities, Accounts Receivable, Accounts Payable and Equity. The Balance Sheet includes permanent
accounts.
Income and expense accounts: These are categories for tracking how money flows in and out of your company.
QBO’s Profit and Loss statement (also called the Income Statement) includes income and expense accounts.
Temporary accounts appear on QBO’s P&L.
In accounting textbooks, the term Chart of Accounts is defined as a list of all the accounts used in the General Ledger.
Accounts are used to classify transaction information for reporting purposes. QBO includes the Account name, Type (for
financial statement classification), Detail Type, QuickBooks Balance, and Bank Balance. The Chart of Accounts usually
includes account numbers using the following system:
Numbers
1000s
2000s
3000s
4000s
5000s
6000s
1.
Type
Assets
Liabilities
Equity
Income
Cost of Sales
Expenses
> Chart of accounts > select the pencil icon to batch edit. The Chart of Accounts screen
Click
appears with a NUMBER column.
Page 16
Troubleshooting: My Chart of Accounts does not have a number column. Select
> Account and
> Enable account numbers and Show account numbers should be
settings > Advanced > Chart of Accounts >
selected > Save.
There are two balance columns—QuickBooks Balance and Bank Balance. What is the difference between the
QuickBooks Balance and the Bank Balance? The QuickBooks Balance represents the check register balance.
The Bank Balance shows the balance at the bank that is linked to your QBO account. For example, if you entered a
check for $100 and the checking account balance is $1,000, $900 will be shown as the QuickBooks Balance on the
Chart of Accounts. The Bank Balance will continue to be $1,000 since the $100 check has not cleared the bank. In
other words, the QuickBooks Balance represents all transactions entered. The Bank Balance is different because not
every bank account transaction has cleared the bank.
2.
To add the account numbers shown on the table, select the pencil icon to batch edit
. A Number column
appears on the Chart of Accounts screen. Add account numbers from the chart below. Boldface indicates what you
type. After adding account numbers, click
.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Page 17
Number Name
1000
Checking
1010
Savings
1020
Accounts Receivable
1025
Inventory Asset
1030
Prepaid Expenses
1035
Uncategorized Asset
1040
Undeposited Funds
1050
Truck
1051
Depreciation
1052
Original Cost
2000
Accounts Payable
2005
Mastercard
2010
Visa
2013
Board of Equalization Payable
2015
Loan Payable
2200
Notes Payable
3000
Opening Balance Equity
3900
Retained Earnings
Account Type
Bank
Bank
Accounts Receivable (A/R)
Other Current Assets
Other Current Assets
Other Current Assets
Other Current Assets
Fixed Assets
Fixed Assets
Fixed Assets
Accounts Payable (A/P)
Credit Card
Credit Card
Other Current Liabilities
Other Current Liabilities
Long Term Liabilities
Equity
Equity
Detail Type
Checking
Savings
Accounts Receivable (A/R)
Inventory
Prepaid Expenses
Other Current Assets
Undeposited Funds
Vehicles
Accumulated Depreciated
Vehicles
Accounts Payable (A/P)
Credit Card
Credit Card
Sales Tax Payable
Other Current Liabilities
Other Long Term Liabilities
Opening Balance Equity
Retained Earnings
Page 18
3.
Scroll down to the bottom of the page, click
.
Examine the chart of accounts.
1.
The account number is shown in the first column.
2.
The account number is shown next to the Name.
3.
The account Type is shown. The Type column categorizes the accounts for the Balance Sheet or Profit and
Loss (also called the Income Statement).
4.
The Detail Type assigns the account into a subcategory in order to have it appear in the correct place
according to the Generally Accepted Accounting Principles (GAAP). For example, all cash or cash equivalents
are grouped together on the Balance Sheet under assets, and subcategorized as Current Assets. Choosing the
correct categories places the accounts in the correct positions on the Balance Sheet or Profit & Loss Statement.
What is the difference between the View register accounts and Run report accounts? The View register accounts show
their Chart of Accounts (also called the Account List) balances. They are also called permanent accounts and appear on the
Balance Sheet. The Run report accounts do not show balances and are called temporary accounts. Temporary accounts
appear on the Profit and Loss statement. The Run report accounts are closed at the end of the year. The chart of accounts
appears with account numbers next to the name of each account.
Figure 1-15 shows the Chart of Accounts which is also called the Account List.
Page 19
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Figure 1-15: Account List
Intuit Inc.
Export the Chart of Accounts (Account List) to Excel
To export Craig’s Design and Landscaping Services to Excel, follow these steps.
1.
Go to
> in the Search field, type and select Account List. (Hint: There are a couple
ways to display the Account List: Gear > Chart of Accounts (which is also the Account List) > Run Report.)
2.
Craig’s Design and Landscaping Services Account List appears. Click on the down-arrow next to the Export icon >
Export to Excel.
3.
Open the file >Enable Editing.
Page 20
4.
Go to the location to save the file > Save as Chapter 1_CofA_sample company_Student Name (use your first and
last name).
5.
Exit Excel or Continue.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Comment: You can save the Excel file as a PDF or use the steps that follow. From the Excel file > select File > Save as
Adobe PDF > click Convert to PDF > go to the location for saving files > Save.
Save the Chart of Accounts as a PDF file
1.
The Account List should be displayed. Or, go to Reports > in the Search field, type and select Account List. Select
the Export icon, Export to PDF.
2.
Craig’s Design and Landscaping Services Account List displays. On the Print, email, or save as PDF page > select
.
3.
4.
Open the AccountList.pdf file > Click the Save as button
> go to the location for saving file.
Use the file name Chapter 1_CofA_sample company_Student Name (use your first and last name).
Get Complete eBook Download by Email at discountsmtb@hotmail.com
SIGN OUT
Page 21
Click on the initial > Sign out.
Comment: The numbers added to the Chart of Accounts are not saved. If you want to continue your work without
losing data, do not sign out at this time. When you sign out, a Sign In page appears. Close your browser.
Troubleshooting
If you are not using Craig’s Design and Landscaping Services, it will close automatically. When you exit or sign out,
your chart of account numbers will not be saved. Each time you start the sample company, it begins again.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
RECENT TRANSCTIONS
If you signed out, go online to https://qbo.intuit.com/redir/testdrive to start the sample company. Complete the security verification
to begin. On the top right of the Intuit QuickBooks screen, there are six selections — My Experts, Help, Search, Notifications, Gear,
and
initial
for
signing
out
.
Plus New allows you to add transactions and complete typical Customer, Vendor, Employee,
and Other tasks. You have the option to Show More or Show Less.
Page 22
My Experts has a link to viewing Accounting Pros and sending Feedback.
QuickBooks Online self-help includes two tabs: Assistant and Search for submitting questions to the
QB community or contacting Intuit.
The magnifying glass includes Search Tips and Recent Transactions.
Gear icon takes you to settings for Your Company, Lists, Tools, and Profile.
Click on the initial for signing out.
Follow these steps to view recent transactions.
1.
. Recent Transactions are listed. Depending on when you selected Recent Transactions, yours may
Click
differ from Figures 1-16 and 1-17.
In the example that follows, on 04/01/2023 (your date may differ), a $19.99 Squeaky Kleen Car Wash Credit Card Expense
transaction is shown. The dates on the sample company default to your current month/day/year. For example, if you are using
the sample company, Craig’s Design and Landscaping Services, during the month of September 2023, the screens will default
to that month and year.
Page 23
The purpose of using the sample company is to explore QB Online. Setting up a company, journalizing and posting
transactions, account reconciliation, viewing financial reports, completing the accounting cycle, and starting a new fiscal year
is done in Chapters 2 through 10. The payroll app is used in Chapter 11.
To see how a credit card transaction is entered, drill-down on the Credit Card Expense for Squeaky Kleen Car Wash
04/01/2023. (Your date differs.)
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Figure 1-16: Search Recent Transactions
Intuit Inc.
2.
In this example, Credit Card Expense is shown for 04/01/2023 (your date differs), Squeaky Kleen Car Wash. The Expense
screen shows that the vendor, Squeaky Kleen Car Wash is (1) an Expense, (2) was paid with a Mastercard, (3) vendor’s
balance is $157.72, (4) The account debited is Automobile, and (5 and 6) the amount and total is $19.99. Refer to Figure 1-17.
Page 24
Figure 1-17: Credit Card Expense
Intuit Inc.
The vendor’s balance represents what Craig’s Design and Landscaping Services owes to Squeaky Kleen Car Wash (the
vendor).
3.
On the Expense title bar, click <X> close.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
REPORTS
Use reports to view the company’s financial information. Generate financial statements, transaction details, employee
information, etc.
Reports are divided into three sections:
Standard
Custom reports
Management reports
Page 25
Use reports to get a snapshot of various aspects of your business. When you select reports, Standard is the default. Within
the Search field, you can type the report name to quickly locate the report or scroll down the Reports sections.
Favorites
Business overview
Who owes you
Sales and customers
What you owe
Expenses and vendors
Sales tax
Employees
For my accountant
Payroll
Journal
To look at a journal report, do this:
1.
2.
From the Navigation Bar, select
> in the search field, type and select Journal.
After selecting Journal, the Journal report appears > select Switch to classic view. In the Report period field,
select Custom > type the date of your Expense transaction > accept the default for the TO date which is your current
date > press <Tab>. On Figure 1-18, the author’s dates are 04/01/2023 to 04/17/2023. Your dates will differ.
Page 26
Figure 1-18: Journal
Intuit Inc.
Depending on the dates of the displayed Journal, transactions may differ from what is shown in Figure 1-18. The account
distribution for the Squeaky Kleen Car Wash is:
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Account Account Type Debit Credit
Automobile Expense
19.99
Mastercard Credit Card
19.99
Troubleshooting
If you are not using Craig’s Design and Landscaping Services, it will close automatically. When you exit or sign out, data is
not saved. Each time you start the sample company, it begins again.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
CHECK YOUR PROGRESS
In subsequent chapters, Check Your Progress questions are at the end of the chapter and do not include answers. For purposes
of showing how to complete Check Your Progress, answers are included in Chapter 1.
Page 27
1.
What are Balance Sheet accounts?
Answer: Balance Sheet accounts show what you own and what you owe.
2.
List two accounts and their balances that show what the business owns; list two accounts and their balances that show
what the business owes.
Answer:
Figure 1-19A: Two accounts, what you own
Intuit Inc.
Figure 1-19B: Two accounts, what you owe
Intuit Inc.
3.
What are income and expense accounts?
Answer: Income and expense accounts are categories for tracking how money flows in and out of your company.
4.
List the first two income accounts and the first two expense accounts.
Answer:
Income: Billable Expense Income and Design Income
Expenses: Advertising and Automobile
5.
In this chapter, what account numbering system is suggested for Assets, Liabilities, Equity, Income, Cost of Sales, and
Expenses?
Page 28
Assets:
1000s
Liabilities:
2000s
Equity
3000s
Income:
4000s
Cost of Sales: 5000s
Expenses:
6000s
Get Complete eBook Download by Email at discountsmtb@hotmail.com
CREATE AN INVOICE
Every invoice is automatically tracked, so you know who owes you money and who has paid. Use invoices when the customer
pays you later.
Customer Invoice
Complete the following sales invoice.
Date
Transaction
Current Date Sold a Rock Fountain to Dukes Basketball Camp, $275 plus 8% California tax of $22; total $297.
1.
2.
Select Sales > Customers.
Put a checkmark next to Dukes Basketball Camp.
3.
Select Create invoice. The Invoice screen appears with (A) Dukes Basketball Camp selected. The Invoice date field shows
the current date.
Page 29
4.
For the PRODUCT/SERVICE, select (B) Rock Fountain Design: Fountains. The description, quantity, rate, (C) tax, and (D)
Balance due fields are automatically completed. Select (E) Save and close.
Figure 1-20: Dukes Basketball Camp Invoice
Intuit Inc.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
5.
On
the
bottom
of
the
Invoice
screen,
click
on
the
down
arrow
next
to
Save
and
Send.
Click
. A screen prompts that Invoice 1038 was saved. The Customers
screen shows Receive payment next to Dukes Basketball Camp. (If necessary, click on Dukes to put a checkmark next to it.)
Page 30
Receive Payment
Date
Transaction
End of month Dukes Basketball Camp paid for Invoice # 1038, $297.
1.
2.
The Customers screen should be displayed. For Dukes Basketball Camp > click Receive payment.
In the Payment date field, type the last day of the month. For example, the Invoice date on Figure 1-20 shows 04/17/2023
(the author’s current date). On the Receive Payment screen, (A) Payment date shows 04/30/2023 (your date will differ).
3.
In the Deposit to field, select (B) Checking.
Figure 1-21: Receive Payment
Intuit Inc.
4.
Review Figure 1-21, Receive Payment. Select (C) Save and close. The screen prompts Receive payment $297.00 saved.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Page 31
Income
From the Dashboard’s Business overview selection, you can see what Invoices have been paid in the last 365 days. Figure 1-22
shows balances as of the day you signed into Craig's Design and Landscaping Services.
Figure 1-22: Invoices
1.
Click Sales > select
Invoice 1038 is Paid.
Page 32
. Figure 1-23 shows Dukes Basketball Camp Status is Closed, and
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Figure 1-23: All Sales
2.
Go to the Invoice screen by clicking on Invoice 1038. Invoice No. 1038 shows PAID. Figure 1-24 agrees with the payment
completed in Figure 1-21. Click <X> to close Invoice 1038.
Figure 1-24: Payment Status
3.
Click on the left arrow
at the top of the screen to display the Dashboard.
Page 33
A/R Aging Summary
1.
2.
From the Navigation bar, go to Reports > Who owes you > select Accounts receivable aging summary.
In the As of field, type (or select) the last day of the month > Run report. Observe that the TOTAL shows $5,281.52 (your
amount may differ). This is the amount of Accounts Receivable Craig’s Design and Landscaping Services can expect to
receive from its customers.
Your A/R Summary report may differ. Figure 1-25 shows the author's dates.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Figure 1-25: A/R Aging Summary
Intuit Inc.
3.
Page 34
Compare the total, $5,281.52 (or your A/R Summary total), to the Accounts Receivable balance by selecting Reports >
then type and select Trial Balance in the search field > type the last day of the month in the to field > Run Report. The Trial
Balance Account Receivable (A/R) balance shows $5,281.52. Figure 1-26 shows a partial Trial Balance. Compare the
Accounts Receivable balance in Figure 1-26 to the A/R Summary total in Figure 1-25. Depending on when you signed into the
test-drive, account balances may differ.
Figure 1-26: Trial Balance
Intuit Inc.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Transaction Detail by Account
This report lists transactions subtotaled by each account on the chart of accounts. It is like General Ledger without opening
balances.
1.
Go to Reports > if necessary, scroll down the Reports page, in the For my accountant area > select Transaction Detail by
Account > Switch to classic view.
2.
In the Report period field, select All Dates > Run report. Scroll down the screen to look at the last entry for the Checking
account which shows the payment from Dukes Basketball Camp. Remember, your date will differ.
Figure 1-27: Payment Dukes Basketball Camp
Intuit Inc.
3.
Page 35
Scroll down to see the Accounts Receivable (A/R) balance. Dukes Basketball Camp Invoice and payment is shown, and
the balance is $5,281.52.
Figure 1-28: Accounts Receivable Balance
Intuit Inc.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
MANAGEMENT REPORTS
The Reports page includes a selection for Management reports. Management reports include ready-to-use templates that contain
reports and other customizable content. Management reports can be printed, emailed, or exported.
Company Overview
1.
2.
Go to Reports > select Management reports.
On the Company Overview row, accept the default for This Year > link to Preview. The Print preview page appears. There
are six pages. Scroll down to page 3 of 6. The Profit and Loss from January – December 20XX appears. Figure 1-29 shows a
partial P&L. (Your year and amounts may differ.)
Page 36
Figure 1-29: P&L Management report
Intuit Inc.
3.
Scroll down to page 5 of 6. Figure 1-30 shows a partial Balance Sheet.
Page 37
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Figure 1-30: Balance Sheet Management report
Intuit Inc.
4.
On the Print preview page, click <X> to close.
Sales Performance
5.
Go to Sales Performance > This Year > Preview > page 5 of 6. Figure 1-31 shows the A/R Aging Detail report. Your dates
may differ.
Page 38
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Figure 1-31: A/R Aging Detail
Intuit Inc.
6.
Go to page 6 of 6 to display the Sales by Customer Summary. Figure 1-32 shows the Sales by Customer Summary.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Figure 1-32: Sales by Customer Summary
Intuit Inc.
7.
Close Print preview.
Page 39
Expenses Performance
8.
Go to Expenses Performance > This Year > Preview > Pages 5 of 6 and 6 of 6. (Hint: Your dates and totals may differ.)
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Figure 1-33: A/P Aging Detail
Intuit Inc.
Figure 1-34: Expenses by Vendor Summary
Intuit Inc.
9.
Page 40
Close print preview.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
SALES RECEIPT
Use sales receipts when the customer pays you at the time of the sale. To record this transaction, follow the steps on the next
page.
Date
Transaction
Current Date Completed three hours of custom design work for cash for the customer, Cool Cars, $225.00
1.
> Sales receipt. Complete these fields.
Click
Customer:
Select Cool Cars
Sales Receipt Date: Current date automatically completed
Payment method: Check
Deposit to:
Select Checking
Product/Service:
Select Design (Custom Design, Design)
Qty:
Type 3
Balance due:
0.00 completed automatically
Comment: Depending on when you entered the Sales Receipt, the date field will differ. QBO defaults to the current date.
Page 41
Figure 1-35: Sales Receipt
Intuit Inc.
2.
Select Save and close. The screen prompts your sales receipt was saved.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
ENTER A BILL
To enter bills that you received but pay later, use the Bill page. Entering a bill helps you track how much money you owe and
control your cash flow. Bills are entered for vendors or suppliers.
Date
Transaction
Current date Craig’s Design and Landscaping Services received a bill for $250 from Lee Advertising.
Page 42
1.
Click
Vendor:
Bill date:
Category:
Amount:
> Bill. Complete these fields
Select Lee Advertising
Current date automatically completed
Advertising
250.00
Figure 1-36: Bill
Intuit Inc.
2.
Save and close.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
CHECK
Date
Transaction
Current date Check No. 71, from the Checking account was issued to Computers by Jenni in the amount of $650.
Page 43
1.
Click
Payee:
Bank account:
Payment date:
Check no.:
Category:
Description:
Amount:
> Check. Complete these fields:
Select Computers by Jenni
Checking is automatically selected
Current date automatically completed
71 automatically completed
Select Supplies – Expense
Type Purchased tablet computer
Type 650
Figure 1-37: Check #71
Intuit Inc.
2.
Hint: Your Balance field may differ depending on when you signed into the sample company.
Save and close.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
JOURNAL REPORT
Page 44
The Journal report breaks down every transaction during a period of time into debits and credits and displays them
chronologically. Transaction List by Date also lists transactions chronologically, but not as debits and credits.
1.
2.
Go to Reports > type and select Journal > select Switch to classic view.
In the Report period field, select Custom > type the dates of your transactions. For example, if the transaction dates are the
current date, then type the current date. Depending on when you signed out and signed in again and completed transactions,
your Journal report will differ.
Figure 1-38: Journal
Intuit Inc.
SIGN OUT or continue.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
CHECK YOUR PROGRESS 2
Page 45
How is the Accounts Receivable balance checked?
Answer:
Go to the Trial Balance report (Reports > Trial Balance or This Year-to-date on the Transaction Detail by Account
report.). On the Trial Balance and Transaction Detail by Account report, the balance for Accounts Receivable (A/R) is
shown.
To make sure it agrees with the customer balance, display the A/R aging summary (Reports > Accounts Receivable
Aging Summary; Transaction Date is Today). The Accounts Receivable balance on the Trial Balance and the Total on
the A/R Aging Summary are the same.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
QUICKBOOKS RESOURCES AND ACTIVITIES
If your professor requires Connect, the following resources may be assigned for grading.
1.
2.
3.
4.
5.
6.
7.
8.
Multiple-choice and true or false questions.
Analysis question(s).
Check Your Progress.
Chapter work and end-of chapter exercises.
Problem solving.
Certification Q&A.
Test Bank.
Additional student resources (ASR).
Page 46
Additional Student Resources (ASR)
The following resources can be found on the Additional Student Resources (ASR) page in Connect’s eBook. If you are not using
Connect, your instructor can provide you with an ASR page document that contains URLs to access these resources:
1.
2.
Narrated PowerPoints. The PowerPoints include links to the videos.
QBO Videos: The Chapter 1 PowerPoints include additional video links.
1.
Get started with QuickBooks
2.
Use QuickBooks Shortcuts.
3.
Search for videos. The video tutorials include choices - Get started, Account management, Advanced accounting,
Banking, Expenses and vendors, Invoices and payments, Reports, Sales and customers, and Taxes.
3. Text Updates.
Exercise 1-1: Follow the instructions below to complete Exercise 1-1:
1.
If you have not signed out, do that now. For Exercise 1-1, start the test drive again. Go online to
https://qbo.intuit.com/redir/testdrive. Complete the security verification. Craig’s Design and Landscaping Services Dashboard
appears.
2.
To set invoice numbers, go to Gear > Account and settings > Sales > in the Sales form content field, click
turn on Custom transaction numbers > Save.
to edit >
Figure 1-39: Custom transaction numbers are on
Intuit Inc.
3.
Page 47
Select Advanced. Within Other preferences, increase Sign me out if inactive to 3 hours > Save.
Figure 1-40: 3 hours
Intuit Inc.
4.
5.
After saving, click <Done>.
Enter the following transactions. Use your current date and year.
Sold 3 rock fountains on account to the customer, Amy’s Bird Sanctuary, $825 plus 8% sales tax; total $891. If a Hi
Craig! Let’s get you set up with invoicing appears, click <Get started>. Answer these questions:
First, how do you want to send invoices? Select +Send another way > click <Next>.
Next, how do you want to get paid? Select +Send some other way > click <Finish>. Invoice #1038 appears.
Read the popups.
Sold 20 sprinkler heads on account to the customer, Sushi by Katsuyuki, $40 plus 8% sales tax; total $43.20. (Hint:
For sales tax, select California.)
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Completed 4 hours of installation of landscape design for Kookies by Kathy; received $200. (Hint:
6.
> Sales Receipt. Payment method, Check; Deposit to, Checking; Product/Service,
Installation; no sales tax charged for installation.)
Completed 3 hours of custom design work for Cool Cars; received $225. (Hint: Payment method, Check; Deposit to,
Checking; Product/Service, Design; No sales tax.)
Completed 10 hours of custom design work on account for the customer, John Melton, $750.
Received a bill from Lee Advertising, $250, for local paper advertising.
Page 48
Received a bill from Cal Telephone for $56.50, for telephone expense.
Received a bill from PG&E for $86.44, for utilities (gas and electric) expense.
Received a bill from Hall Properties for $900, for building lease.
Issued Check No. 71 from the Checking account to Chin’s Gas and Oil, $48.05, for Automobile:Fuel. (Hint: In the
Category field, select Automobile:Fuel. Type the Amount, $48.05. Since you restarted the sample company, the default
check number is 71.)
Issued Check No. 72 to Ellis Equipment Rental, from the Checking account, $115, for equipment rental expense.
(Hint: In the Category field, select Equipment Rental, an Expenses account.)
Issued Check No. 73 to Red Rock Diner, from the Checking account, for $23.37, for Meals and Entertainment.
Do not sign out. Continue with Exercise 1-2.
Page 49
Exercise 1-2: Follow the instructions below to complete Exercise 1-2:
1.
Display the Journal for the date you entered Exercise 1-1 transactions. (Hint: This Month-to-date is the default. The From
and To fields should show the current date. For example, select Today in the Transaction Date field. Go to Reports > type and
select Journal > Today.) Check that you entered Exercise 1-1’s transactions.
2.
Export the Journal to Excel and save as a PDF file. The suggested file name is Exercise 1-2_Journal. Type the date that
you entered the Journal transactions. (Hint: Since you started QBO’s sample company in Exercise 1-1, scroll down to see that
the Exercise 1-1 transactions were entered.)
3.
Display the Transaction Detail by Account report. Export the report to Excel and save as a PDF file. In the Report period
field, select All dates. Use the file name Exercise 1-2_Transaction Detail by Account.
4.
Display the Trial Balance > select All Dates. Export to Excel and save as a PDF file. Use the file name Exercise 1-2_Trial
Balance.
Check Figures:
Checking
1,439.58
Accounts Receivable 6,965.72
Accounts Payable
2,895.61
Design Income
3,225.00
Advertising
324.86
These account balances are based on starting the sample company with Exercise 1-1. Depending on when you signed into
the test-drive, your balances may differ.
5.
Continue with Exercise 1-3. Exercise 1-3: Problem Solving
Exercise 1-3 is available within Connect. It includes:
1.
2.
Display the Chart of Accounts.
How do the View register accounts differ from the Run report accounts? Include information about financial statements in
your answer.
3.
When through, sign out.
Certification Q&A Practice Test
Certification Q&A multiple-choice questions are available within Connect. For this chapter, the certification practice test is mapped
to these exam objectives: QuickBooks Online Administration, Sales and Money In, Vendors and Money Out, Basic Reports and
Views. Refer to QBO Certified User_Exam Objectives.pdf.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
CHAPTER 1 INDEX
Page 50
Account and settings 12
Account list 14, 19
Additional student resources 46
A/R aging summary 33
Audit log 12
Balance sheet 14
Chart of accounts 14
Certification Q&A practice test 49
Check 42
Check figures 49
Check your progress 26, 45
Comment 14, 20, 21, 40
Connect 45
Create an invoice 28
Customer invoice 28
Dashboard 3, 7
Data metrics 4
Data vizualization 4
DAVE 4
Default 3
Enter a bill 41
Exercise 1-1 46
Exercise 1-2 48
Exercise 1-3 49
Export the chart of accounts (account list) to Excel 19
FYI 1, 7, 11
Generally Accepted Accounting Principles (GAAP) 18
Getting started 2
Page 51
Home page 3
Income 31
Income and expense accounts 15
Income statement 18
Journal 25
Journal report 44
Management reports 35
Navigation bar 5
Objectives 1
Profit and loss 9
QBO navigation 5
QuickBooks Resources and Activities 45
Receive payment 30
Recent transactions 21
Reports 24
Sales receipt 40
Save the chart of accounts as a PDF file 20
Scenario 1
Sign in 3
Sign out 21, 44
Start invoicing 11
Supported browsers 2
System requirements 2
Test drive (sample company) sign in 3
Transaction detail by account 34
Trial balance 34
Troubleshooting 16, 21, 26
Get Complete eBook Download by Email at discountsmtb@hotmail.com
User interface 5
Page 52
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Chapter 2
New Company Setup and Chart of Accounts
Page 53
Scenario: In Chapter 2, you accept the invitation for a one-year subscription to QuickBooks Online Plus (QBO+).
This chapter includes setting up a new company, Student Name Sales and Service. After changing account and
settings, you import a chart of accounts, save your work, and complete the end-of-chapter exercises. To see the work
accomplished, display an Audit Log. The Objectives specify the work that is completed in Chapter 2.
Get Complete eBook Download by Email at discountsmtb@hotmail.com
Get Complete eBook Download link Below for Instant Download:
https://browsegrades.net/documents/286751/ebook-payment-link-forinstant-download-after-payment