Initial Setup of a Business using the Accounting Software

2. Accounting Period Customizing chart of accounts

a. View chart of accounts
b. Add items to chart of accounts
c. Delete items from chart of accounts
d. Modify items in chart of accounts
3. Enter Beginning Balances
4. Backup / Restore company data for future use

Deleting Chart of Accounts

Some accounts are not needed, so they can be deleted. Follow these steps to delete accounts.

1. Enter account 15400 for the ACCOUNT ID.

2. Click the Delete button.

3. Select Yes to confirm you want to delete the record.

4. Using these steps as a guide, delete these accounts

Delete the following accounts:

Acct. ID Account description

10000 Petty cash
10100 Cash on hand
11400 Other receivables
14100 Employee advances
14200 Notes receivable-current
14700 Other current assets
15200 Automobiles
15300 Other depreciable property
15400 Leasehold improvements
15600 Building improvements
16900 Land
17200 Accum. Depreciation-automobile
17300 Accum. Depreciation-other
17400 Accum. Depreciation-leasehold
 17600 Accum. Depreciation-Bldg Imp
19000 Deposits
19100 Organization costs
19150 Accum. Amortiz-org. Costs
19200 Notes receivable-noncurrent
19900 Other noncurrent assets
23300 Deductions payable
24800 Other current liabilities
24900 Suspense-clearing account
58000 Cost of sales – other
60500 Amortization expense
61000 Auto expense
62500 Cash over and short
63000 Charitable contributions exp.
63500 Commissions and fees exp.
65000 Employee benefit programs exp.
68000 Laundry and cleaning exp.
73000 Other taxes
74000 Rent or lease exp.
77000 Salaries exp
40600 Sales#3
51000 Cost of goods sold #3

Modify items in chart of accounts

1. Select Maintain, Chart of Accounts.

2. Enter or select account 10200 from the Account ID looking list.

3. Change the Description to Jamaica National Bank Checking.

4. Check the Save button.

5. Using these steps as a guide, change these account descriptions.

Remember to click save after changing each description:

Change the following accounts:

Acct. ID Account Name Change to Account

10200 Regular Checking account Jamaica National Bank checking
10400 Saving account National Commercial Bank savings and loan
 12000 Inventory Merchandise inventory
14000 Prepaid expenses Prepaid insurance
15100 Equipment Computers&equipment
17000 Accum. depreciation -furniture Accum. Depreciation-furn&fix
17100 Accum. Depreciation-equipment Accum. Depreciation-comp&equp
27000 Notes payable- noncurrent Long- term notes payable
27400 Other long term liabilities Mortgage payable
40200 Sales #1 Sales - hardware
40400 Sales #2 Sales - tools
50000 Cost of goods sold #1 Cost of goods sold -hardware
50500 Cost of goods sold #2 Cost of goods sold - tools
23600 State payroll taxes payable NHT payable
23700 SUTA payable EDUC tax payable
23800 Local payroll taxes payable HEART tax payable
23500 FUTA tax payable NIS payable

Add items to chart of accounts

Follow these steps to add accounts:

1. Click the New button on the toolbar.

2. Enter the ACCOUNT ID: - 72010

3. Enter the Description: NIS expense

4. Select the Account Type to Expense.

5. Click Save to add the account, then click New to add the next account.

6. Using these as steps as a guide, add these accounts, Remember to click Save, then
New after adding each account.

Add the following accounts:

Acct. # Account Name Account Type
72010 NIS expense Expense
72011 NHT expense Expense
72012 EDUC tax expense Expense
72013 HEART expense Expense
77600 Overtime expense Expense

View chart of accounts

 To preview or print this report, follow these steps:

1. Select Reports, General Ledger. The Select a Report window opens. General Ledger
is highlighted in the Report Area and the reports available in the General Ledger are
listed in the Report List.

2. The Chart of Accounts report in the General Ledger Report List is already highlighted
select the Preview button on the toolbar and click OK toy view the report.

Entering Beginning Balances

Click on Maintain on your menu bar

Then click on Chart of Accounts
Then click on Account Beginning Balances
Select the period 1/1/20 through 1/31/20
Then click OK
Save and backup

Use ______your company name_______________________Sales and Service Balance Sheet to

record the beginning balances. (Make sure you select the correct date)

______________________ Sales and Service

Balance Sheet
January 1, 2020
ASSETS
Current Assets:
Jamaica National Bank checking $50,200.00
National Commercial Bank Savings & Loan 12,100.00
Merchandise Inventory 14,750.00
Supplies 1,000.00
Prepaid Insurance 2,400.00
Total Current Assets $ 80,450.00
Property and Equipment:
Furniture and Fixtures 3,500.00
Computer & Equipment 5,500.00
Building 85,000.00
Total Property and Equipment 94,000.00
$174,450.00
LIABILITIES AND CAPITAL
Long-Term Liabilities:
Long-Term Notes Payable 10,000.00
Mortgage Payable 60,000.00
 Total Long-Term Liabilities $ 70,000.00
Capital:
_____________Capital 104,450.00
Total Liabilities and Capital $174,450.00