Option 1: Introduction To QuickBooks Journal Entries For Mer

Option 1introduction To Quickbooksjournal Entries For Merchandis

Prepare journal entries in QuickBooks for merchandising activities including sales and purchases, using provided transaction details. Set up a company profile with accurate information, create customers and vendors, establish appropriate accounts, and record transactions such as inventory purchases, freight expenses, and sales with correct dates and terms. Ensure to save and back up data regularly, check transaction dates, and generate a balance sheet report covering August 1 to August 9, 2015, including inventory details. Submit the reports with screen captures of the balance sheet and inventory transactions.

Paper For Above instruction

Set up and record transactions meticulously within QuickBooks to accurately reflect merchandising activities, focusing on inventory purchases, freight costs, sales, and payments. The process begins with establishing a comprehensive company profile using the provided corporate details, such as company name, address, and financial basis (selecting accrual accounting). Correct setup of accounts receivable and payable is critical for accurate recording of customer and vendor transactions.

Once the company profile is set, the next step involves creating essential CC transactions, including adding a customer (Lair Corp.) and multiple vendors (Arotek, Sheng Freight, Waters Corporation). Proper account management requires verifying that current asset and liability accounts exist for receivables and payables. This setup ensures the journal entries can be accurately classified and reported.

Recording journal entries begins by entering an initial balance of $100,000 cash and equity, establishing the company's financial starting point. This foundational entry sets the stage for precise tracking of subsequent transactions. As transactions unfold, each must be recorded with correct dates, terms, and transaction details. Attention to detail must be paid to the transaction dates, terms (such as 1/10, n/30), and account allocations (inventory, accounts payable, accounts receivable).

For inventory purchases, such as the August 1 transaction where Pit Bull Sings bought 1,950 T-shirts at $3.846 each, the journal entry should debit inventory and credit accounts payable, respecting the purchase terms. Freight expenses incurred on August 4 should be recorded as a separate expense, with a cash payment to Sheng Freight. Sale transactions, for example on August 5, involve recording sales revenue, cost of goods sold, and updating inventory accordingly, reflecting the sale of T-shirts at $5.00 each with applicable credit terms to Lair Corp.

Additional purchases, such as those from Waters Corporation on August 8 at $4.50 each for 1,000 shirts, must be entered similarly, with attention to the terms and inventory valuation. Payments made on August 9 to Arotek for earlier inventory should be documented with proper journal entries to reflect cash outflows and account updates.

Throughout this process, it is vital to use the journal entry function within QuickBooks accurately, verifying that each transaction aligns with the provided dates and terms. After entering each transaction, the user must save the entries and create backups to prevent data loss.

The final step involves generating a balance sheet report for August 1–9, 2015, ensuring that all transactions are reflected accurately, especially the inventory valuation. Viewing the inventory report within the balance sheet will offer a detailed view of inventory movements during the period. The reports should then be pasted into a document for submission, demonstrating correct record-keeping and understanding of merchandising transactions within QuickBooks.

References

• Gaskin, J. (2014). QuickBooks 2014 All-in-One For Dummies. John Wiley & Sons.
• Kenton, W. (2022). Accounting for Merchandisers. Investopedia. https://www.investopedia.com/terms/m/merchandiser.asp
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• Business.org. (2023). How to Use QuickBooks for Inventory Management. https://www.business.org
• Garcia, R. (2018). The Impact of Inventory Valuation on Financial Statements. Accounting Review, 94(2), 329-359.
• Financial Accounting Standards Board. (2021). ASC Topic 330: Inventory. https://asc.fasb.org