Accounting – Quickbooks

 

1. 1. Enter the company name in your assignment option choice.
   2. Enter the industry: “accounting and bookkeeping.”
   3. Enter the type of company: “sole proprietorship.”
   4. Enter the Tax ID number as 99-1234567.
   5. Select “no employees but might have in the future.”
   6. Enter your address, phone number, and 
   7. Wait for QuickBooks™ to create your company.
   8. Select the right-hand corner icon called “start working.”
   9. Select “Home” from the list in the left-hand column. The home page will appear as follows:

(Source: http://topnotchbookkeeping.com/2011/05/quickbooks-homepage-is-it-yours/

 

• Among the icons on the screen (i.e., Vendors, Customers, Employees, Company, and Bank), select “Chart of Accounts” under Company and a list of the company accounts will appear.
• In the top ribbon click “Edit” (second icon over from the top), and then from the drop–down menu select “add a new account.”
• Add a cash account for “CDE Bank” as a bank account, and a loan account for “ABC Bank.”
• From the other account drop-down menu, add other current asset account called “office supplies.”

 

Important items to remember:

 

• Do not forget to hit ‘save and close’ after you input and file and backup your company’s information often.
• Always check to be sure your input dates are last month’s date. It is very important to do that, especially if you cannot find an input.

Option #2: Percentage of Sales Method: The Miko Company Case

On January 1, 2014, the Miko Company had the following accounts on its books:

Accounts Receivable:                      $120,000 (debit)
Allowance for Uncollectable Accounts:                      $4,200 (credit)

Assignment Template

During the year 2014, credit sales were $260,000 and collections on accounts were $220,000. The following transactions occurred during 2014:

1. January 11, 2014: Wrote off Mora’s account, $1,200.
2. August 30, 2014: Wrote off MyLine’s account, $250.
3. November 20, 2014: Sophy pays $600 of her $1,600 account receivables due.
4. December 1, 2014: Received $3,000 payment on Smith’s accounts receivable, which was previously written off and needs to be restated.

December 31, 2014: In an adjusting entry, Miko Company recorded the provision for uncollectable accounts at 1.5% of credit sales for the year.

Instructions:

Submit the following items in an Excel spreadsheet, labeling each as 1, 2, 3, and 4:

1. The four journal entries (1 to 4 above) with a one-sentence description
2. The allowance for doubtful accounts T-account
3. The journal entry to record bad debt expense
4. The balance sheet presentation of net realizable value, including gross accounts receivables of $42,000