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Beginning Balances Instructions for QuickBooks Pro 2008 by Intuit

There are several ways to enter the beginning balances of a problem and this presentation is only one of them. And it is a method that allows the student to change or correct the beginning balances. Using the imported chart of accounts, the challenge, P1-1A-Ready Sell Hardware, states that the following accounts and values are the beginning balances as of December 1, 2008: Debit Credit 101 Cash $15,200 121 Repair Parts 1,500 130 Prepaid Insurance 650 151 Office Equipment 7,000 151.5 Accum Deprec-Off Equip 200 Notes Payable $6,000 201 Accounts Payable 2,750 209 Unearned Service Revenue 1,400 301 Andrew Anderson, Capital 10,000 306 Andrew Anderson, Drawing 500 400 Service Revenue 10,000 727 Sales Salaries Expense 4,000 729 Rent Expense 1,300 Totals $31,150 30,150

From this information you can determine that items such as revenues and expenses are not generated from activities in December 2008. And you would not want fiscal periods activities being reported as December 2008s activities. So the journal entry will be dated and saved as November 30, 2008. From the task bar follow the path COMPANY > MAKE GENERAL JOURNAL ENTRIES.

QuickBooks may provide an information box concerned with the assigning of numbers to journal entries. You can check the Do Not Display This Message in The Future if you desire. Or dismiss it with the red X or OK. You can manually override these auto assigned numbers if desired.

create a chart of accounts. The first is to select an industry as a model during set up. Then QuickBooks will structure a chart of accounts to fit most requirements of governmental regulations and the needs of business persons 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 from another business model or from a scratch built file. The third way is to work within QuickBooks and build each account indiviually. This chapter addresses the second method building a chart of accounts in a Microsoft Excel workbook and then importing it into QuickBooks.

To do this ensure that your selection during set up of your company was Other/None for Industry. This will create a minimal chart of accounts required by QuickBooks. These accounts include:
1) Payroll liabilities, 2) Opening Balance Equity, 3) Owners Draw, 4) Owners Equity, and 5) Payroll Expenses.

The titles of these accounts can be edited, and this chapter will show you how to do that. With QuickBooks open follow the path EDIT > PREFERENCES to access the Preferences dialog box.

With the Prefences dialog box open, select the ACCOUNTING section from the left panel then COMPANY PREFERENCES, as shown in this screen print. With Company Preferences open, click into USE ACCOUNT NUMBERS in the Accounts section. Then click OK to continue.

Download the QuickBooks Pro 2008-Chart of Accounts-Import.xls Microsoft Excel workbook from the site your instructor identifies. NOTE: Your instructor may create a chart of accounts specific to a challenge or a course and have that available for you to download. Open the downloaded file. The first step is to protect the original file for later use. Use SAVE AS to save the 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 challenges company name can be utilized P1-1A-Ready Sell Hardware. The Microsoft Excel workbook has many accounts and each has a seperate account number and account name. These may not agree with your textbook and they can be edited much easier in Excel than in QuickBooks. Assuming your first challenge is for a sole proprietorship, you can delete the accounts associated with partnerships and corporations 311 through 349 as well as 380. Other accounts can be deleted or their titles can be edited before the workbook data is imported into QuickBooks. If your challenge is

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

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. All account titles in the QuickBooks Pro 2008-Chart of Accounts-Import.xls will import without an error. 4) Save and close the workbook before attempting to import its data. With QuickBooks open follow the path FILE > UTILITIES > IMPORT > EXCEL FILES to access the Add Your Excel Data to QuickBooks dialog box.

With the Add Your Excel Data to QuickBooks dialog box open, click on ADVANCED IMPORT.

With the Import a File dialog box open, use BROWSE to locate your Excel workbook. Doubleclicking it will set it as the File. The QuickBooks Pro 2008Chart of AccountsImport.xls workbook has tabs identified and a header row set to help you with this import. Set the Choose a Sheet in This Excel Workbook to ACCOUNTS. Ensure that This Data File Has Header Rows is checked. Click on the drop-down menu option for Choose a Mapping. Then click on < ADD NEW >. QuickBooks will present you with the Mapping dialog box. The QuickBooks Pro 2008-Chart of Accounts-Import.xls workbook has columns/header rows set to the same values as the import process to reduce the probability of errors. In this dialog box you can set the Mapping Name to COA IMPORT. From the Import Type select ACCOUNT from the dropdown menu options. To set the Type in the QuickBooks/left column to Import Data TYPE, click

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

Set Number to NUMBER and Name to NAME. When ready, click SAVE to continue. Now click on the IMPORT button in the bottom row towards the left of the Import 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 your company. QuickBooks will ask about Duplicate Record Found. Since you have no data within your company, click on REPLACE EXISTING DATA WITH IMPORT DATA, IGNORIG BLANK FIELDS. Then click APPLY TO ALL to continue. 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. And the answer is YES! This information will tell you which accounts have not been imported. You will need to correct your import workbook or manually create those files.

Your chart of accounts is now populated with MANY accounts, as shown here. It includes those created by QuickBooks during set up. In this screen print you can see that your three digit accounts also contain QuickBooks five digit accounts, such as 32000 Owners Equity.

Since there was an Equity account 301 Name, Equity, in the import and QuickBooks created 32000 Owners Equity as a required account, you can delete 301 Name, Equity. Single-click on 301 Name, Equity to select it. Then click on the ACCOUNT button in the lower left corner of the Chart of Accounts dialog box. Click on DELETE ACCOUNT from the options and click on OK to confirm the deletion. Now you can edit the 32000 Owners Equity account created by QuickBooks to your three digit series numbering. Click once onto the 32000 OWNERS EQUITY account. You may have to scroll down to access this account. Then click on ACCOUNT in the lower left corner of the dialog box. From the drop-down menu options select EDIT ACCOUNT.

And QuickBooks provides you with the Edit Account dialog box, shown here. Since this is a required account, you cannot change its Account Type, as such, the window is dimmed. Change the Number to 301, change the Account Name to Andy, Capital, or the full and proper name of the owner such as Andew Anderson followed by a comma 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 have been recorded. It is best to delate the imported accounts and edit the QuickBooks required accounts. Remember QuickBooks requires and established these accounts during set up:
1) Payroll liabilities, 2) Opening Balance Equity, 3) Owners Draw, 4) Owners Equity, and 5) Payroll Expenses.

These account titles or similar ones are contained within the QuickBooks Pro 2008-Chart of Accounts-Import.xls Excel workbook. You can delete them before or after the import if you desire. The imported chart of accounts has numerous accumulated depreciation accounts associated with fixed assets. An example of this is 141.5 Accum Deprec-Lodge and 141 Lodge, as shown here.

Use the Edit capability through the Account button and set 141.5 Accum Deprec-Lodge as a Subaccount of 141 LODGE, as shown here. Click on SAVE & CLOSE to continue. There are other subaccounts, all identified by the decimal extension 112.5 is a subaccount of 112 while 143.5 is a subaccount of 143. By using Edit under Account, you can set these accounts to the correct structure for proper presentation. Another chapter shows how to create accounts manually and manually creating accounts may be faster for small chart of account structures such as ten or less. With your chart of accounts complete, it is recommended you read the chapter on Beginning Balances.