Quickbooks Chapter 3 – Flashcards

Click Check Register icon in banking section of Home Page/Choose which bank account (ex. 10100 Checking)

Open the Check Register/double click on the entry (When you double click on an item to see it's supporting documents, this is called the drill-down feature)

Display the Check Register/Click on one of the payments to the company of interest/QuickReport button/Enter Dates: All

Record Deposits icon in Banking section of Home Page 1. Record payment received but not yet deposited 2. Record the deposit

Banking section of Home page/click Write Checks icon/select desired bank account and date and put in who to pay and the amount/ (Check) Print Later to tell QB to record and print the check/on Expenses tab, choose appropriate account to record payment in correct account/ select Print if you want to print the check and enter the check number and OK/insert preprinted check forms of needed/Check style: Standard/Print company name and address/choose printer/Print/OK/Save and Close

Click on Reports in Icon bar/Accountant and Taxes/Journal (If DC on entry it will drill down to source document)

Click Reconcile icon from Banking section of Home page/Select Checking/etc. When reconciled, difference should equal zero

Reports menu/Banking/Previous Reconciliation

Click Locate Discrepancies from Begin Reconciliation window or Display the check Register, then click the Cleared Status column until the appropriate status (cleared or uncleared) appears

Select Banking from the Menu bar/Bank Feeds Center/select appropriate account/ Transaction List

Banking section of Home Page Click Enter Credit Card Charges icon Select Purchase/Charge Choose who it is purchased from Enter date, amount & memo Select Expenses tab and enter account field choosing the correct amount Save and Close

Record deposits (cash flowing into the Checking account) Write checks (cash going out of the checking account) Print Checks Reconcile bank statements View Check Register Enter credit card charges

1. Payments from customers. (Enter these using the Customers section of the Home Page.) 2. Non-sales receipts (deposits other than customer payments) such as: (Enter these using the Banking section of the Home Page) Cash received from loans Investments from owners Interest earned Other income, such as rental income

One step approach to bill paying: 1. Record and pay the bill at the same time. The bill is paid when it is received. Two-step approach to bill paying: (will learn in Chapter 5) 1. Record the bill when it is received 2. Pay the bill later when it is due.

Expense such as rent, utilities, and insurance Non-Inventory items such as office supplies Services such as accounting or legal services

1. Onscreen forms (like an onscreen check) 2. An onscreen Journal using debits and credits

Account Type: Debit/Credit: Effect on Balance: Asset Debit Increase Liability Credit Increase Equity Credit Increase Revenues (Income) Credit Increase Expenses Debit Increase

process of comparing (reconciling) the bank statement with your accounting records for the Checking account.

1. Detect errors 2. Update our accounting records for unrecorded items listed on the bank statement (such as service charge)

1. Errors- either bank errors or company errors 2. Timing differences such as... Deposits in transit- company has recorded deposits but bank has not Outstanding checks- checks company has written and recorded but bank has not yet recorded Unrecorded charges- charges bank has recorded but company has not yet such as service charges Interest earned on the account- interest bank has recorded but company has not yet recorded

1. Set up account for participating financial institution. 2. Enter transactions in QB and flag online payments. 3. Download transaction into the QB bank feeds center. 4. Match or add downloaded transactions into QB.