Using Quickbooks Accountant 2013

12th Edition Glenn Owen Solutions

Manual
Visit to download the full and correct content document: https://testbankdeal.com/dow
nload/using-quickbooks-accountant-2013-12th-edition-glenn-owen-solutions-manual/
 6

Setting Up Your Business’s Accounting System

In Chapter 6, students learn, in an interactive way, how to create a new company file and add new

customers, vendors, employees, accounts, and items. This effort should reinforce the system’s

nature of accounting and, in doing so, help students grasp the various steps involved in setting up a

business.

CHAPTER 6 QUESTIONS

1. The EasyStep Interview process provides a step-by-step guided series of questions that you
can answer to help you choose various QuickBooks Accountant features.
2. Preferences provide a way for turning certain features on or off, changing the look of the
QuickBooks Accountant desktop, and customizing how QuickBooks Accountant performs.
3. Some businesses use account numbers to help manage their accounting systems. Others choose
not to use account numbers because account names are more descriptive than account numbers.
4. For Wild Water Sports, service items would be things like changing engine oil and filter, engine
tune ups, and 20-hour service checks, for example. Inventory part items would include boats,
accessories, and parts for repairs.
5. Wild Water Sports decided to use QuickBooks Accountant’s job tracking feature to follow
service-related efforts for customers. The firm plans to market its service program to
existing customers and will need to track costs for each job as well as bill based on hours
worked and materials used for each job.
6. Financial accounting requires disclosure of both asset cost and related accumulated
depreciation. Thus it is important to set up separate asset cost and accumulated depreciation
accounts. It’s also important to enter beginning balances in accumulated depreciation as
negative amounts since they represent a contra asset balance.
7. The beginning accounts receivable balances are assigned to an account called Uncategorized
Income as of the date you enter them, and all beginning accounts payable balances are assigned
to an account called Uncategorized Expenses as of the same date.

57
58 Chapter 6

8. To set up payroll:
a. Press the F1 key to start QuickBooks Accountant Help.
b. Type process payroll manually in the Have a Question? Text box and then click the
search button.
c. Click Process payroll manually (without a subscription to QuickBooks Accountant
Payroll)
d. Double-click the text Calculate payroll taxes manually.
e. Click the text manual payroll calculations.
f. Click the text Set my company file to use manual calculations.
g. Click OK and then close the QuickBooks Accountant Help window.
9. In the Payroll and Compensation Info tab, you must identify the employee’s hourly/annual rate;
the pay frequency; their marital status; whether they are subject to Medicare, Social
Security, and federal unemployment insurance; and whether they are subject to state tax
withholding.
10. It is very important to keep a backup of your company file just in case your computer hard
drive crashes or your data file gets corrupted or destroyed.

CHAPTER 6 MATCHING

e Anyone who pays you.

f Anyone you pay except employees.

b Anything that your company buys, sells, or resells in the course of business.

a This QuickBooks Accountant setup process walks you through the setup procedure and helps you
tailor QuickBooks Accountant to suit your business.

c Items representing services you sell.

d Items representing products you sell.

j In traditional accounting, a document that adds up all the debits and credits so that mistakes can
be traced if debits don't equal credits.

i Property used in a productive capacity that will benefit your business for longer than one year.

h An optional way to keep track of larger orders, such as those placed by different departments
within the same organization.

g The amount of money in, or the value of, an account as of the start date of your records in
QuickBooks Accountant.
Chapter 6 59

CHAPTER 6 EXERCISES

1.

2.
60 Chapter 6

3.

4.

5.
Chapter 6 61

6.
62 Chapter 6

CHAPTER 6 ASSIGNMENTS

1. Adding More Information to Wild Water Sports

a.

b.

c.

d.
Chapter 6 63

e.

f.
64 Chapter 6

g.
Chapter 6 65

h.
66 Chapter 6

Creating a New Company: Central Coast Cellular

a.
Chapter 6 67

b.
68 Chapter 6

c.

d.
Chapter 6 69

e.

3. SANTA BARBARA SAILING

a.

b.

c.
70 Chapter 6

d.

e.
Chapter 6 71

CHAPTER 6 CASE PROBLEM 1: FOREVER YOUNG

1.

Forever Young

2.
Forever Young

3.

Forever Young

4.

Forever Young
72 Chapter 6

CHAPTER 6 CASE PROBLEM 2: OCEAN VIEW FLOWERS

1.

2.

3.
Chapter 6 73

4.

CHAPTER 6 CASE PROBLEM 3: ALOHA PROPERTIES, INC.

1.

2.
74 Chapter 6

3.

4.
Chapter 6 75

5.

6.