Quickbooks Beginning Balance Instructions

7/29/2019 Quickbooks Beginning Balance Instructions

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Beginning Balances Instructionsfor QuickBooks Pro 2008 by Intuit

There are several ways to enter the beginning balances of a problem andthis presentation is only one of them. And it is a method that allows thestudent to change or correct the beginning balances.

Using the imported chart of accounts, the challenge, P1-1A-Ready SellHardware, states that the following accounts and values are the beginningbalances as of December 1, 2008:

Debit Credit

101 Cash $15,200121 Repair Parts 1,500130 Prepaid Insurance 650

151 Office Equipment 7,000151.5Accum Deprec-Off Equip200 Notes Payable $6,000201 Accounts Payable 2,750209 Unearned Service Revenue 1,400301 Andrew Anderson, Capital 10,000306 Andrew Anderson, Drawing 500400 Service Revenue 10,000727 Sales Salaries Expense 4,000729 Rent Expense 1,300 0

Totals $31,150 30,150

From this information you candetermine that items such as revenuesand expenses are not generated fromactivities in December 2008. And youwould not want fiscal periods activitiesbeing reported as December 2008sactivities. So the journal entry will bedated and saved as November 30,2008.

From the task bar follow the pathCOMPANY > MAKE GENERALJOURNAL ENTRIES.


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QuickBooks may provide aninformation box concerned withthe assigning of numbers tojournal entries. You can checkthe Do Not Display This Message

in The Future if you desire. Ordismiss it with the red X or OK.

You can manually override theseauto assigned numbers ifdesired.

create a chart of accounts. The first is to select an industry as a model duringset up. Then QuickBooks will structure a chart of accounts to fit mostrequirements of governmental regulations and the needs of businesspersons to run the business. The second is to select Other/None in the set up

process and import a chart of accounts through a Microsoft Excel file fromanother business model or from a scratch built file. The third way is to workwithin QuickBooks and build each account indiviually. This chapter addressesthe second method building a chart of accounts in a Microsoft Excelworkbook and then importing it into QuickBooks.


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To do this ensure that your selection during set up of your company wasOther/None for Industry. This will create a minimal chart of accounts requiredby QuickBooks. These accounts include:

1) Payroll liabilities, 4) Owners Equity, and2) Opening Balance Equity, 5) Payroll Expenses.3) Owners Draw,

The titles of these accounts can be edited, and this chapter will show youhow to do that.

With QuickBooks open follow thepath EDIT > PREFERENCES toaccess the Preferences dialogbox.


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With the Prefences dialog box open, select the ACCOUNTING section fromthe left panel thenCOMPANYPREFERENCES, as shownin this screen print.

With Company Preferencesopen, click into USEACCOUNT NUMBERS inthe Accounts section.

Then click OK to continue.

Download the QuickBooks

Pro 2008-Chart of Accounts-Import.xlsMicrosoft Excel workbookfrom the site yourinstructor identifies.

NOTE: Your instructor maycreate a chart of accountsspecific to a challenge or acourse and have thatavailable for you to

download.

Open the downloaded file.The first step is to protectthe original file for lateruse. Use SAVE AS to savethe file as a working file.The name of the working file may be something associated with your name P1-1A-John Jackson. Or the challenge identification and the challengescompany name can be utilized P1-1A-Ready Sell Hardware. The MicrosoftExcel workbook has many accounts and each has a seperate account

number and account name. These may not agree with your textbook andthey can be edited much easier in Excel than in QuickBooks.

Assuming your first challenge is for a sole proprietorship, you can delete theaccounts associated with partnerships and corporations 311 through 349as well as 380. Other accounts can be deleted or their titles can be editedbefore the workbook data is imported into QuickBooks. If your challenge is


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based on a corporation, delete the sole proprietorship and partnershipaccounts before importing.


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Some rules that make life simplier:1) The header row, Row 1 should not be changed.2) Once unnecessary accounts have been deleted, resort the workbook to

remove empty rows.3) Remember that account titles are limited in size, any accounts having

more than about thirty characters in the title may not be imported. Allaccount titles in the QuickBooks Pro 2008-Chart of Accounts-Import.xlswill import without an error.

4) Save and close the workbook before attempting to import its data.

With QuickBooks open followthe path FILE > UTILITIES >IMPORT > EXCEL FILES toaccess the Add Your ExcelData to QuickBooks dialogbox.

With the Add Your Excel

Data to QuickBooks dialogbox open, click onADVANCED IMPORT.


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With the Import a Filedialog box open, useBROWSE to locate yourExcel workbook. Double-clicking it will set it as the

File.

The QuickBooks Pro 2008-Chart of Accounts-Import.xls workbook hastabs identified and aheader row set to help youwith this import. Set theChoose a Sheet in ThisExcel Workbook toACCOUNTS.

Ensure that This Data FileHas Header Rows ischecked.

Click on the drop-down menu option for Choose a Mapping. Then click on .

QuickBooks will presentyou with the Mapping

dialog box. The QuickBooksPro 2008-Chart of Accounts-Import.xlsworkbook hascolumns/header rows set tothe same values as theimport process to reducethe probability of errors.

In this dialog box you canset the Mapping Name to

COA IMPORT. From theImport Type selectACCOUNT from the drop-down menu options.

To set the Type in theQuickBooks/left column toImport Data TYPE, click


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into the IMPORT DATA column to the right of Type in the QuickBooks/left.Then select TYPE from the options.


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Set Number to NUMBER and Name to NAME. When ready, click SAVE tocontinue.

Now click on the IMPORT button in the bottom row towards the left of theImport a File dialog box. Since your company had no data, you can click YES

when QuickBooks asks if you want to proceed without backing up yourcompany.

QuickBooks will ask aboutDuplicate Record Found. Sinceyou have no data within yourcompany, click on REPLACEEXISTING DATA WITHIMPORT DATA, IGNORIGBLANK FIELDS.

Then click APPLY TO ALL tocontinue.

After several seconds QuickBooks will inform you that the import is finished.If there are errors QuickBooks will ask if you would like to save a record. Andthe answer is YES! This information will tell you which accounts have notbeen imported. You will need to correct your import workbook or manuallycreate those files.

Your chart of accounts isnow populated with MANYaccounts, as shown here. It

includes those created byQuickBooks during set up.In this screen print you cansee that your three digitaccounts also containQuickBooks five digitaccounts, such as 32000 Owners Equity.


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Since there was an Equityaccount 301 Name,Equity, in the import andQuickBooks created 32000

Owners Equity as arequired account, you candelete 301 Name, Equity.

Single-click on 301 Name, Equityto select it.Then click on theACCOUNT button in thelower left corner of theChart of Accounts dialogbox.

Click on DELETEACCOUNT from theoptions and click on OKtoconfirm the deletion.

Now you can edit the 32000 Owners Equity account created by QuickBooksto your three digit series numbering.

Click once onto the 32000 OWNERS EQUITY

account. You may have toscroll down to access thisaccount.

Then click on ACCOUNTinthe lower left corner of thedialog box.

From the drop-down menuoptions select EDITACCOUNT.


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And QuickBooks providesyou with the Edit Accountdialog box, shown here.Since this is a requiredaccount, you cannot

change its Account Type,as such, the window isdimmed.

Change the Number to301, change the AccountName toAndy, Capital, orthe full and proper name ofthe owner such as AndewAnderson followed by acomma and the word

Capital if you desire Andrew Anderson, Capital.

You could edit the Description or add a Note if desired.

Click on SAVE & CLOSE to record your changes and continue.

You can quickly delete unnecessary accounts since no journal entries havebeen recorded. It is best to delate the imported accounts and edit theQuickBooks required accounts. Remember QuickBooks requires andestablished these accounts during set up:

1) Payroll liabilities, 4) Owners Equity, and2) Opening Balance Equity, 5) Payroll Expenses.3) Owners Draw,

These account titles or similar ones are contained within the QuickBooks Pro2008-Chart of Accounts-Import.xls Excel workbook. You can delete thembefore or after the import if you desire.

The imported chart ofaccounts has numerousaccumulated depreciationaccounts associated with

fixed assets. An example ofthis is 141.5 AccumDeprec-Lodge and 141 Lodge, as shown here.


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Use the Edit capabilitythrough the Account buttonand set 141.5 AccumDeprec-Lodge as aSubaccount of 141

LODGE, as shown here.

Click on SAVE & CLOSE tocontinue.

There are othersubaccounts, all identifiedby the decimal extension 112.5 is a subaccount of112 while 143.5 is asubaccount of 143. By

using Edit under Account,you can set these accountsto the correct structure for proper presentation.

Another chapter shows how to create accounts manually and manuallycreating accounts may be faster for small chart of account structures such asten or less.

With your chart of accounts complete, it is recommended you read thechapter on Beginning Balances.

Quickbooks Beginning Balance Instructions

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