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Computer accounting with quickbooks 2018

Computer accounting with quickbooks 2018. Donna Kay. Chapter 9 QuickBooks adjustments. Chapter 9 covers adjustments required to ensure we have reliable reports. Section 9.1 SatNav. Chapter 9 overview. Accounting Cycle Using QuickBooks to Make Adjusting Entries Types of Adjusting Entries.

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Computer accounting with quickbooks 2018

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  1. Computer accounting with quickbooks 2018 Donna Kay Chapter 9 QuickBooks adjustments

  2. Chapter 9 covers adjustments required to ensure we have reliable reports Section 9.1 SatNav

  3. Chapter 9 overview • Accounting Cycle • Using QuickBooks to Make Adjusting Entries • Types of Adjusting Entries

  4. accounting cycle The Accounting Cycle is a series of accounting activities that a business performs each accounting period. The Accounting Cycle usually consists of the following: • Chart of Accounts • Transactions • Trial Balance • Adjustments • Adjusted Trial Balance • Financial Statements

  5. Trial balance 1 • Trial Balance lists each account and the ending account balance • Prepare a Trial Balance to verify total debits equal total credits 2 3 4 5

  6. 1 make adjusting entries using quickbooks journal 2 Record adjusting entries with QuickBooks Journal to bring accounts up to date: • Select Accountant Menu • Select Make General Journal Entries • Enter adjusting entries into the the QuickBooks Journal

  7. Adjusting entries • Adjusting entries are often necessary when the accrual basis of accounting is used. • The Accrual basis: • Records revenue (income) when it is earned (when products and services are provided to customers) regardless of when the cash is received from customers • Records expense when they are incurred (the benefits have expired) regardless of when the cash is paid

  8. Adjusting entries If the accrual basis is used to calculate profits, the following types of adjusting entries may be necessary: • Prepaid items. Items that are prepaid, such as prepaid insurance or prepaid rent. • Unearned items. Items that a customer has paid us for, but we have not provided the product or service. • Accrued expenses. Expenses that are incurred but not yet paid or recorded. • Accrued revenues. Revenues that have been earned but not yet collected or recorded.

  9. 6 Adjusted trial balance 5 3 4 • Trial Balance +/- Adjusting Entires = Adjusted Trial Balance • Adjusted Trial Balance: prepare an Adjusted Trial Balance to verify the accounting system still balances after adjustments

  10. To learn more… See Chapter 9

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