Introduction to QuickBooks™: Journal
Entries for Merchandising Activities: Sales and Purchases
This assignment requires Quickbooks software
Go to Home page, select the widget to the direct top right of the word ‘help’
and select on the left side ‘settings’, then company setting.
For each edit, hit the pen picture on the right hand side of each section.
Enter the company name, Pit Bull Sings T-Shirt. Enter information as indicated
Company address: c/o CSU- Global; 7800 Orchard Road- Suite
City: Greenwood Village, CO 80111
ZIP code: 80111
Phone Number: 999.999.9999
Choose Accrual Basis
Go to advanced setting
and be sure everything is turned on except the accounting setting for the
closing of the books.
X out of this screen, which returns you to the home page.
the home page, go to the top right hand corner, to the right of the name
of the company, click the gear symbol, which is the main link for
everything you need for changes.
is on the left-hand side of the home page with links to customers,
vendors, and transactions. Add one customer (see tight top corner for the
button for new): Lair Corp. Add three vendors: Arotek, Sheng Freight, and
Waters Corporation. Also in the left, in chart of accounts, be sure there
is a current asset account called accounts receivable and a current
liability account called accounts payable.
doing the journal entries below: Go to top panel, in the middle of the top
of the screen, where there is a plus sign (+) and select journal entries
found in the other section. In the cash on and credit to opening equity,
give company an opening balance of $100,000 cash and equity.
is up to you to create the correct accounts, with the proper journal
Do not forget to click
on ‘save and new’ after you input and file.
Backup your company
information many times as you work. To do this, click the button at the bottom
of each screen called: save and new
Always check to be
sure your input dates are correct. Transaction input date are on the top left
side above the journal entryAlways best to record terms within the journal
entry in the extra line provided to the right of A/R or A/P
Always best to record
terms within the journal entry in the extra line provided to the right of A/R
2. Prepare journal entries.
Be sure all dates agree with the problem and are not today’s date
1, 2015 – Purchased T-shirts (BI= 0, other assets, inventory) from Arotek.
Bought 1950 shirts at $3.846 each. Round to nearest dollar. Arotek,
vendor, terms are 1/10, n/30.
4, 2015 – At Arotek’s request, Pit Bull sings paid $200 cash to Sheng
Freight for freight expenses on the August 1.
5, 2015 – Sold merchandise to Laird Corp. 1040 T-shirts at $5.00 each.
Liar Corporation, customer, is given credit terms to 2/10, n/60, FOB
destination. The merchandise had cost of $3.846. Round to nearest dollar.
8, 2015 – Purchased Specialized T-shirts from Waters Corporation. Bought
1000 shirts at $4.50 each. Waters Corporation, vendor, terms are 1/10,
9, 2015- Pay Arotek Company for the shirts purchased on AUG 1. Round to
Instructions: Enter above transactions into
QuickBooks. To submit: go to home/reports/balance sheet and be sure your dates include August 1,
2015 to August 8, 2015. Also click on the inventory figure on the balance sheet
to see the transactions within inventory. Cut and paste both of these reports
into a document.