Using QuickBooks® Online For Accounting Solutions Manual Fourth Edition (2021) Glenn Owen
TABLE OF CONTENTS CHAPTER 1
1
QUESTIONS MATCHING
1 1
CHAPTER 2
2
QUESTIONS MATCHING
2 2
CHAPTER 3
3
QUESTIONS MATCHING CASE 1 CASE 2 CASE 3 CASE 4 CASE 5
3 3 4 6 8 10 12
CHAPTER 4
14
QUESTIONS MATCHING CASE 1 CASE 2 CASE 3 CASE 4 CASE 5
14 14 15 18 21 24 27
CHAPTER 5
30
QUESTIONS MATCHING CASE 1 CASE 2 CASE 3 CASE 4 CASE 5
30 30 31 35 40 47 53
CHAPTER 6
58
QUESTIONS MATCHING CASE 1 CASE 2 CASE 3
58 58 59 64 69
© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
TABLE OF CONTENTS CASE 4 CASE 5
74 78
CHAPTER 7
82
QUESTIONS MATCHING CASE 1 CASE 2 CASE 3 CASE 4 CASE 5
82 82 83 87 93 98 102
CHAPTER 8
106
QUESTIONS MATCHING CASE 1 CASE 2 CASE 3 CASE 4 CASE 5
106 106 107 112 118 121 123
CHAPTER 9
126
QUESTIONS MATCHING CASE 1 CASE 2 CASE 3 CASE 4 CASE 5
126 126 127 132 137 142 143
CHAPTER 10
144
QUESTIONS MATCHING CASE 1 CASE 2 CASE 3 CASE 4 CASE 5
144 144 145 150 155 165 171
APPENDIX 2
178
CASE 1 CASE 2 CASE 3 CASE 4
178 187 195 203
© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
1
Chapter 1 Solutions Manual Chapter 1 Questions 1. QBO is limited to one company per license. QBDT can manage an unlimited number of companies. 2. No, QBO requires an Internet connection. 3. No, QBO does not require the creation of backup files. 4. Both QBO and QBDT were developed in-house by Intuit to capture and report on accounting events. 5. The process of assigning your instructor as the accountant for your company involves a brief interview in which you’ll provide your instructor’s email address and name.
Chapter 1 Matching a. b. c. d. e. f. g. h. i. j.
QBO QBDT Gear icon Welcome Guide Navigation bar Create ( ) icon Magnifying Glass Help (?) icon Manage Users Home Page
h. g. d. a. i. j. b. f. c. e.
Click to access help Click to find past transactions Provides tasks to help you get started Online version of QuickBooks Click to add your instructor as your accountant Provides links to QBO tasks and resources Windows Desktop version of QuickBooks Click to add any transaction Click to manage your subscription, users, and settings On the left of the home page, it shows a menu of items
© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2
Chapter 2 Solutions Manual Chapter 2 Questions 1. Click Sales and then click Customers. 2. Open the Customer window from the navigation bar, and then click a customer name. 3. Open the Vendor window from the navigation bar, click a specific vendor name, and then click a specific bill. 4. Open the Employee window from the navigation bar, and then click Edit next to a specific employee name. 5. Bank deposits, which have not yet been recorded in QBO, are not recognized and are temporarily classified as Uncategorized Income. 6. Bank charges, which have not yet been recorded in QBO, are not recognized and are temporarily classified as Uncategorized Expense. 7. Opening the sales transaction section of QBO will provide a listing of recent sales invoices and payments. 8. Opening the expense transaction section of QBO will provide a listing of recent credit card transactions, bills, expenses, purchase orders, checks, bill payments, and cash transactions. 9. List options include chart of accounts, recurring transactions, products and services, custom form styles, payment methods, terms, classes, and attachments. 10. Click Reports, and then type Accounts payable in the reports search box.
Chapter 2 Matching a. b. c. d. e. f. g. h. i. j.
Navigation bar Amy’s Bird Sanctuary Brosnahan Insurance Agency Recognizing Uncategorized Income Uncategorized Expense Registers John Johnson Terms Chart of accounts
h. e. g. i. a. c. j. f. b. d.
An employee in the Sample Company Bank deposits not yet recognized Exist for all asset, liability, and equity accounts Specify due dates for payment to/from vendors/customers Used to access a list of sales and expense transactions A vendor in the Sample Company A listing of all accounts available Bank charges not yet recognized A customer in the Sample Company Matching a banking transaction with a QBO transaction
© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
3
Chapter 3 Solutions Manual Chapter 3 Questions 1. Company Settings is accessed by clicking the Gear icon and then clicking Account and Settings from the Your Company column. 2. Adding beginning balances only occurs when you are utilizing QBO for the first time and your business has been in operation for some time. 3. Click the Gear icon, click Chart of Accounts, and then click the New button in the upper righthand corner of the chart of accounts. 4. The Opening Balance Equity account is also affected when a beginning balance is entered into an account. 5. When you add a new product, you may provide an initial quantity on hand and a related as of date. You also provide the related inventory asset account, sales and purchase description information, the price, the cost, the income account, and the cost of goods sold account used. You must also identify if the item is taxable if the company collects sales tax. 6. When you add a beginning balance to accounts receivable, you must also identify the name of the customer who owes you. 7. When you add a beginning balance to accounts payable, you must also identify the name of the vendor you owe. 8. Retained Earnings is the additional account used when closing the Opening Balance Equity account. 9. Click Reports from the Navigation bar, type Balance Sheet into the Find report by name search text box, and then press [Enter]. 10. Click the balance in the account line of the Balance Sheet report to view the Transaction Report.
Chapter 3 Matching a. b. c. d. e.
Transactions report Trial Balance Journal entry Opening Balance Equity Customer
e. d. g. h. b.
f. g. h. i. j.
Vendor Product Service Account Type Detailed type example
i. a. f. j. c.
Entity to whom you sell products/services Account used to offset beginning balances adjustments Merchandise a company purchases from a vendor Efforts made by a company to add value to a customer A listing of the debit and credit balances as of a specific date Dictates where an account appears in all reports Transactions for an account for a specified period Entity from whom you purchase products/services Checking Commonly used to adjust accounts
© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
4
Chapter 3 Case 1 Trial Balance
Case 1 TRIAL BALANCE As of December 31, 2023 DEBIT
Checking
25,000.00
Accounts Receivable (A/R)
5,000.00
Inventory Asset
8,000.00
Prepaid Expenses
3,000.00
Furniture & Fixtures:Depreciation Furniture & Fixtures:Original cost
CREDIT
10,000.00 40,000.00
Accounts Payable (A/P)
4,500.00
Notes Payable
60,000.00
Common Stock
1,000.00
Opening Balance Equity
0.00
Retained Earnings TOTAL
5,500.00 $81,000.00
© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
$81,000.00
5
Transaction Detail by Account Case 1 TRANSACTION DETAIL BY ACCOUNT January 2014 - December 2024
DATE
TRANSACTION TYPE
NUM
NAME
MEMO/DESCRIPTION
SPLIT
Opening Balance
Opening Balance Equity
AMOUNT
BALANCE
25,000.00
25,000.00
Checking 12/31/2023
Deposit
Total for Checking
$25,000.00
Accounts Receivable (A/R) 12/31/2023
Journal Entry
1
-Split-
Total for Accounts Receivable (A/R)
5,000.00
5,000.00
$5,000.00
Inventory Asset 12/31/2023
Inventory Starting Value
START
Rook 15 - Opening inventory and value
Opening Balance Equity
4,000.00
4,000.00
12/31/2023
Inventory Starting Value
START
The Water Hog - Opening inventory and value
Opening Balance Equity
4,000.00
8,000.00
Total for Inventory Asset
$8,000.00
Prepaid Expenses 12/31/2023
Journal Entry
1
-Split-
Total for Prepaid Expenses
3,000.00
3,000.00
$3,000.00
Furniture & Fixtures Depreciation 12/31/2023
Journal Entry
2
Opening Balance
-Split-
Total for Depreciation
-10,000.00
-10,000.00
$ -10,000.00
Original cost 12/31/2023
Journal Entry
1
Opening Balance
-Split-
40,000.00
Total for Original cost
$40,000.00
Total for Furniture & Fixtures
$30,000.00
40,000.00
Accounts Payable (A/P) 12/31/2023
Journal Entry
1
-Split-
Total for Accounts Payable (A/P)
4,500.00
4,500.00
$4,500.00
Notes Payable 12/31/2023
Journal Entry
3
Opening Balance
-Split-
Total for Notes Payable
60,000.00
60,000.00
$60,000.00
Common Stock 12/31/2023
Journal Entry
4
Opening Balance
-Split-
Total for Common Stock
1,000.00
1,000.00
$1,000.00
Opening Balance Equity 12/31/2023
Journal Entry
2
Opening Balance
-Split-
-10,000.00
-10,000.00
12/31/2023
Journal Entry
4
Opening Balance
-Split-
-1,000.00
-11,000.00
12/31/2023
Journal Entry
1
Opening Balance
-Split-
40,000.00
29,000.00
12/31/2023
Journal Entry
3
Opening Balance
-Split-
-60,000.00
-31,000.00
12/31/2023
Inventory Starting Value
START
Rook 15 - Opening inventory and value
Inventory Asset
4,000.00
-27,000.00
12/31/2023
Journal Entry
1
-Split-
3,500.00
-23,500.00
12/31/2023
Journal Entry
2
-Split-
-5,500.00
-29,000.00
12/31/2023
Inventory Starting Value
START
Inventory Asset
4,000.00
-25,000.00
12/31/2023
Deposit
Checking
25,000.00
0.00
The Water Hog - Opening inventory and value
Total for Opening Balance Equity
$0.00
Retained Earnings 12/31/2023
Journal Entry
Total for Retained Earnings
2
-Split-
5,500.00 $5,500.00
© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5,500.00
6
Chapter 3 Case 2 Trial Balance
© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7
Transaction Detail by Account
© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
8
Chapter 3 Case 3 Trial Balance
© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
9
Transaction Detail by Account
© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
10
Chapter 3 Case 4
© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
11
© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12
Chapter 3 Case 5
© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
13
© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14
Chapter 4 Solutions Manual Chapter 4 Questions 1. 2. 3. 4. 5. 6.
From the Gear icon, click Products and Services located in the Lists column. From the icon, click Sales Receipts located in the Customers column. From the icon, click Invoice located in the Customers column. From the icon, click Receive Payment located in the Customers column. From the icon, click Bank Deposit located in the Other column. A new product is usually tracked and thus a beginning quantity may be required. A new service is not usually tracked and thus no beginning balance quantity is required. 7. A business uses sales receipts to record sales transactions on a daily basis where payment is received at the same time as a product or service is delivered. Sales invoices are used to record sales transactions where customers are granted credit terms and given some length of time to pay after a product or service is delivered.
Chapter 4 Matching a. b. c. d. e. f. g. h. i. j.
Invoice Sales receipt Product Service icon Payment from a customer Deposit Pest control Roses Cool Cars
h. g. a. e. j. d. b. f. c. i.
A service in the Sample Company Providing the bank a payment from a customer Used when recording a sale on account Used to access invoices, sales receipts, or bank deposits A customer in the Sample Company Quantities of this are not tracked Used when cash is collected at the time of a sale Cash receipts received from a sale Quantities of this are tracked A product in the Sample Company
© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15
Chapter 4 Case 1 Trial Balance
Case 1 TRIAL BALANCE As of January 31, 2024
DEBIT
Checking
26,300.00
Accounts Receivable (A/R)
1,030.00
Inventory Asset
6,700.00
Prepaid Expenses
3,000.00
Undeposited Funds
5,000.00
Furniture & Fixtures:Depreciation Furniture & Fixtures:Original cost
CREDIT
10,000.00 40,000.00
Accounts Payable (A/P)
4,500.00
Notes Payable
60,000.00
Common Stock
1,000.00
Opening Balance Equity
0.00
Retained Earnings
5,500.00
Sales
2,160.00
Services
170.00
Cost of Goods Sold TOTAL
1,300.00 $83,330.00
© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
$83,330.00
16
Transaction Detail by Account Case 1 TRANSACTION DETAIL BY ACCOUNT January 2014 - December 2024
DATE
TRANSACTION TYPE
NUM
NAME
MEMO/DESCRIPTION
SPLIT
AMOUNT
BALANCE
Opening Balance
Opening Balance Equity
25,000.00
25,000.00
Undeposited Funds
1,300.00
26,300.00
Checking 12/31/2023
Deposit
01/08/2024
Deposit
Blondie's Boards
Total for Checking
$26,300.00
Accounts Receivable (A/R) 12/31/2023
Journal Entry
1
-Split-
5,000.00
5,000.00
01/04/2024
Invoice
1002
Sarah Hay
-Split-
1,030.00
6,030.00
01/05/2024
Payment
984
Blondie's Boards
Undeposited Funds
-5,000.00
1,030.00
Total for Accounts Receivable (A/R)
$1,030.00
Inventory Asset 12/31/2023
Inventory Starting Value START
The Water Hog - Opening inventory and value
Opening Balance Equity
4,000.00
4,000.00
12/31/2023
Inventory Starting Value START
Rook 15 - Opening inventory and value
Opening Balance Equity
4,000.00
8,000.00
01/01/2024
Inventory Starting Value START
Fred Rubble - Opening inventory and value
Opening Balance Equity
0.00
8,000.00
01/03/2024
Sales Receipt
1001
Blondie's Boards Rook 15
Undeposited Funds
-800.00
7,200.00
01/04/2024
Invoice
1002
Sarah Hay
Accounts Receivable (A/R)
-500.00
6,700.00
The Water Hog
Total for Inventory Asset
$6,700.00
Prepaid Expenses 12/31/2023
Journal Entry
1
-Split-
Total for Prepaid Expenses
3,000.00
3,000.00
$3,000.00
Undeposited Funds 01/03/2024
Sales Receipt
1001
Blondie's Boards
Sales
1,300.00
1,300.00
01/05/2024
Payment
984
Blondie's Boards
Accounts Receivable (A/R)
5,000.00
6,300.00
01/08/2024
Deposit
Blondie's Boards
Checking
-1,300.00
5,000.00
Total for Undeposited Funds
$5,000.00
Furniture & Fixtures Depreciation 12/31/2023 Journal Entry
2
Opening Balance
-Split-
Total for Depreciation
-10,000.00 -10,000.00 $ -10,000.00
Original cost 12/31/2023 Journal Entry
1
Opening Balance
-Split-
40,000.00
Total for Original cost
$40,000.00
Total for Furniture & Fixtures
$30,000.00
40,000.00
Accounts Payable (A/P) 12/31/2023
Journal Entry
1
-Split-
Total for Accounts Payable (A/P)
4,500.00
4,500.00
$4,500.00
Notes Payable 12/31/2023
Journal Entry
3
Opening Balance
-Split-
Total for Notes Payable
60,000.00
60,000.00
$60,000.00
Common Stock 12/31/2023
Journal Entry
4
Opening Balance
-Split-
Total for Common Stock
1,000.00
1,000.00
$1,000.00
Opening Balance Equity 12/31/2023
Inventory Starting Value START
Rook 15 - Opening inventory and value
Inventory Asset
4,000.00
12/31/2023
Inventory Starting Value START
The Water Hog - Opening inventory and value
Inventory Asset
4,000.00
4,000.00 8,000.00
12/31/2023
Deposit
Checking
25,000.00
33,000.00
12/31/2023
Journal Entry
1
-Split-
3,500.00
36,500.00
12/31/2023
Journal Entry
2
Opening Balance
-Split-
-10,000.00
26,500.00
12/31/2023
Journal Entry
4
Opening Balance
-Split-
-1,000.00
25,500.00
12/31/2023
Journal Entry
3
Opening Balance
-Split-
-60,000.00 -34,500.00
12/31/2023
Journal Entry
2
12/31/2023
Journal Entry
1
01/01/2024
Inventory Starting Value START
-Split-
-5,500.00 -40,000.00
Opening Balance
-Split-
40,000.00
0.00
Fred Rubble - Opening inventory and value
Inventory Asset
0.00
0.00
Total for Opening Balance Equity
$0.00
Retained Earnings 12/31/2023
Journal Entry
2
-Split-
5,500.00
© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5,500.00
17 DATE
TRANSACTION TYPE
NUM
NAME
MEMO/DESCRIPTION
SPLIT
Total for Retained Earnings
AMOUNT
BALANCE
$5,500.00
Sales 01/03/2024
Sales Receipt
1001
Blondie's Boards Rook 15
Undeposited Funds
01/04/2024
Invoice
1002
Sarah Hay
Accounts Receivable (A/R)
The Water Hog
Total for Sales
1,300.00
1,300.00
860.00
2,160.00
$2,160.00
Services 01/04/2024
Invoice
1002
Sarah Hay
Tune-Up
Accounts Receivable (A/R)
Total for Services
170.00
170.00
$170.00
Cost of Goods Sold 01/03/2024
Sales Receipt
1001
Blondie's Boards Rook 15
Undeposited Funds
800.00
800.00
01/04/2024
Invoice
1002
Sarah Hay
Accounts Receivable (A/R)
500.00
1,300.00
Total for Cost of Goods Sold
The Water Hog
$1,300.00
© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
18
Chapter 4 Case 2 Trial Balance
© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
19
Transaction Detail by Account
© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
20
© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.