Accounting for a
Service Company
 Record Transactions
 Prepare
a Trial Balance
 Make Adjusting Entries
 Prepare an Adjusted Trial Balance
 Financial Statements & Other Financial Records
• Income Statement
• Balance Sheet
• Statement of Cash Flows
• Journal
• Ledger
 Closing
 Owner
Investments
 Purchases
 Make Payments
 Sales
 Receive Payments
 Use
Record Deposits tool
Journal Entry
Your Name Checking(Cash)
Opening Balance Equity (Capital Account)
Use Write
Checks tool
Journal Entry
Supplies
Cash
Purchases on Account - Credit Purchases
 Use Enter Bills tool to record purchase
 Use Pay Bills tool to record payment
Journal Entry - Purchase
Supplies
Accounts Payable
Journal Entry - Payment
Accounts Payable
Cash
 Use
the Record Deposits tool
Journal Entry
Cash (Your Name Checking)
Sales
 Use
the Invoices tool to record sale
 Use the Receive Payments tool to record
customer payments
 Use the Record Deposits tool to record deposits
Journal Entries
Accounts Receivable
Sales
Cash
Accounts Receivable
 Used
with frequently recurring transactions
 Transactions have some static (non-changing)
data
 Saves time entering data
 Record with Edit>Memorize Bill or Ctrl + M
 Recall with Lists>Memorized Transactions List
or Ctrl + T, then double-click the transaction to
use
 Recorded
at the end of the accounting period
 Brings certain account balances up to date
prior to preparing the financial statements
 Record in QuickBooks using
Company>Make General Journal Entries
1.
2.
3.
The Trial Balance indicates a balance of $800 in the
Supplies account. A physical count of supplies shows
that the company has $250 of supplies on hand.
Prepare the adjusting entry to update the appropriate
accounts.
The company purchased an automobile for $20,000 to
be used in the business. The automobile is expected
to have a useful life of 5 years and a salvage value of
$5,000. Prepare the adjusting entry to update the
appropriate accounts.
The company has a $12,000 note payable. Interest is
to be paid when the note matures, but accrues
annually at a rate of 6%. Prepare the adjusting entry
to update the appropriate accounts.
 Prepare
as of the last day in the fiscal period
Income Statement – Shows the results of
operations over a period of time (revenue –
expenses)
 Balance Sheet – Shows a company’s financial
position as of a particular point in time
(assets = liabilities + equity)
 Statement of Cash Flows – shows how and
why the Cash account has changed over a
period of time

 Close
accounts in QuickBooks by setting the
Closing Date
• Company>Set Closing Date
 Close
temporary Accounts
• Revenue
• Expenses
• Income Summary
• Drawing/Dividends