INSTRUCTOR NOTE:Assignments that can be graded using the QuickBooks Grade Assistant are designated with a *.

To download the QuickBooks Grade Assistant:

1. Go to www.QuickBooksEducator.info

2. Enter Passcode: DonnaKay

3. Select QB2013 GRADE ASSIST

4. Download QB2013 Grade Assistant Excel files with macros.

Instructions are provided on the first worksheet of each QuickBooks Grade Assistant workbook.

S t u d e n t s c a n d ow n l o a d G o D i g i t a l E x c e l r e p o r t t e m p l a t e s a t www.myquickbooks.me, and then export their reports to the Excel template for grading with the QuickBooks Grade Assistant.

CHAPTER 2CUSTOMIZING QUICKBOOKS AND THE CHART OF ACCOUNTS

CHAPTER 2 QUICK CHECK

CHAPTER 2 * Chart of Accounts (Account Listing)

EXERCISE 2.1 * Task 3: Statement of Cash Flows * Task 4: To Do List

EXERCISE 2.2 * Task 3: Revised Chart of Accounts

EXERCISE 2.3 Your Choice: List of Industry-Specific Features

EXERCISE 2.4 Schedule C Tax Form 1120S Tax Form

PROJECT 2 QUICK CHECK

PROJECT 2 * Chart of Accounts (Account Listing) * Statement of Cash Flows

2.2 Exploring QuickBooks with Rock Castle Construction

Computer Accounting with QuickBooks 2014 by Donna Kay ©McGraw-Hill Education, 2015

CHAPTER 2 CHART OF ACCOUNTS

    Chapter 2 Customizing QuickBooks and the Chart of Accounts 2.3

Computer Accounting with QuickBooks 2014 by Donna Kay ©McGraw-Hill Education, 2015

Account Type Balance Total Description Accnt. # Tax Line

10100 · YourName Checking Bank 46,969.10 Cash 10100 B/S-Assets: Cash10300 · Savings Bank 17,910.19 Savings 10300 B/S-Assets: Cash10400 · Petty Cash Bank 500.00 Petty Cash 10400 B/S-Assets: Cash11000 · Accounts Receivable Accounts Receivable 93,007.93 Accounts Receivable 11000 B/S-Assets: Accts. Rec. and trade notes12000 · Undeposited Funds Other Current Asset 2,440.00 Undeposited Funds 12000 B/S-Assets: Other current assets12100 · Inventory Asset Other Current Asset 30,683.38 Inventory Asset 12100 B/S-Assets: Other current assets12800 · Employee Advances Other Current Asset 832.00 Employee Advances 12800 B/S-Assets: Other current assets13100 · Pre-paid Insurance Other Current Asset 4,050.00 Pre-paid Insurance 13100 B/S-Assets: Other current assets13400 · Retainage Receivable Other Current Asset 3,703.02 Retainage Receivable 13400 B/S-Assets: Other current assets15000 · Furniture and Equipment Fixed Asset 34,326.00 Furniture and Equipment 15000 B/S-Assets: Buildings/oth. depr. assets15100 · Vehicles Fixed Asset 78,936.91 Vehicles 15100 B/S-Assets: Buildings/oth. depr. assets15200 · Buildings and Improvements Fixed Asset 325,000.00 Buildings and Improvements 15200 B/S-Assets: Buildings/oth. depr. assets15300 · Construction Equipment Fixed Asset 15,300.00 Construction Equipment 15300 B/S-Assets: Buildings/oth. depr. assets16900 · Land Fixed Asset 90,000.00 Land 16900 B/S-Assets: Land17000 · Accumulated Depreciation Fixed Asset -110,344.60 Accumulated Depreciation 17000 B/S-Assets: Buildings/oth. depr. assets18700 · Security Deposits Other Asset 1,720.00 Security Deposits 18700 B/S-Assets: Other assets20000 · Accounts Payable Accounts Payable 26,636.92 Moneys you owe to vendors and suppliers 20000 B/S-Liabs/Eq.: Accounts payable20500 · QuickBooks Credit Card Credit Card 94.20 QuickBooks Credit Card 20500 B/S-Liabs/Eq.: Other current liabilities20600 · CalOil Credit Card Credit Card 382.62 20600 B/S-Liabs/Eq.: Other current liabilitiesSubcontracted Federal WH Other Current Liability 0.00 B/S-Liabs/Eq.: Other current liabilities20700 · Due to Owner Other Current Liability 0.00 Short Term Loan from Owner - No Note or Bond 20700 B/S-Liabs/Eq.: Other current liabilities24000 · Payroll Liabilities Other Current Liability 5,404.45 Payroll Liabilities 24000 B/S-Liabs/Eq.: Other current liabilities24000 · Payroll Liabilities:24010 · Federal Withholding Other Current Liability 1,364.00 24010 B/S-Liabs/Eq.: Other current liabilities24000 · Payroll Liabilities:24020 · FICA Payable Other Current Liability 2,118.82 24020 B/S-Liabs/Eq.: Other current liabilities24000 · Payroll Liabilities:24030 · AEIC Payable Other Current Liability 0.00 24030 B/S-Liabs/Eq.: Other current liabilities24000 · Payroll Liabilities:24040 · FUTA Payable Other Current Liability 100.00 24040 B/S-Liabs/Eq.: Other current liabilities24000 · Payroll Liabilities:24050 · State Withholding Other Current Liability 299.19 24050 B/S-Liabs/Eq.: Other current liabilities24000 · Payroll Liabilities:24060 · SUTA Payable Other Current Liability 110.00 24060 B/S-Liabs/Eq.: Other current liabilities24000 · Payroll Liabilities:24070 · State Disability Payable Other Current Liability 48.13 24070 B/S-Liabs/Eq.: Other current liabilities24000 · Payroll Liabilities:24080 · Worker's Compensation Other Current Liability 1,214.31 24080 B/S-Liabs/Eq.: Other current liabilities24000 · Payroll Liabilities:24090 · Direct Deposit Liabilities Other Current Liability 0.00 24090 B/S-Liabs/Eq.: Other current liabilities24000 · Payroll Liabilities:24100 · Emp. Health Ins Payable Other Current Liability 150.00 24100 B/S-Liabs/Eq.: Other current liabilities25500 · Sales Tax Payable Other Current Liability 957.63 Sales Tax Payable 25500 B/S-Liabs/Eq.: Other current liabilities23000 · Loan - Vehicles (Van) Long Term Liability 10,501.47 3/4 Ton PU - 48 months 6.9% purchased 12/01/2005 23000 B/S-Liabs/Eq.: L-T Mortgage/note/bonds pay.23100 · Loan - Vehicles (Utility Truck) Long Term Liability 19,936.91 Loan - Vehicles (Utility Truck) 23100 B/S-Liabs/Eq.: L-T Mortgage/note/bonds pay.23200 · Loan - Vehicles (Pickup Truck) Long Term Liability 22,641.00 Loan - Vehicles (Pickup Truck) 23200 B/S-Liabs/Eq.: L-T Mortgage/note/bonds pay.28100 · Loan - Construction Equipment Long Term Liability 13,911.32 Loan for Construction Equipment 28100 B/S-Liabs/Eq.: L-T Mortgage/note/bonds pay.28200 · Loan - Furniture/Office Equip Long Term Liability 21,000.00 Loan for purchase of furniture and office equipment 28200 B/S-Liabs/Eq.: L-T Mortgage/note/bonds pay.28700 · Note Payable - Bank of Anycity Long Term Liability 2,693.21 28700 B/S-Liabs/Eq.: L-T Mortgage/note/bonds pay.28900 · Mortgage - Office Building Long Term Liability 296,283.00 Mortgage - Office Building 28900 B/S-Liabs/Eq.: L-T Mortgage/note/bonds pay.30000 · Opening Bal Equity Equity 38,773.75 Offset account for use during the setup of the company's QuickBooks data file only.30000 <Unassigned>30100 · Capital Stock Equity 500.00 Capital Stock 30100 <Unassigned>31400 · Shareholder Distributions Equity 0.00 Distributions paid to shareholders 31400 <Unassigned>32000 · Retained Earnings Equity Retained Earnings 32000 <Unassigned>40100 · Construction Income Income Construction Income 40100 <Unassigned>40100 · Construction Income:40110 · Design Income Income 40110 <Unassigned>40100 · Construction Income:40120 · Equipment Rental IncomeIncome 40120 <Unassigned>

2.4 Exploring QuickBooks with Rock Castle Construction

Computer Accounting with QuickBooks 2014 by Donna Kay ©McGraw-Hill Education, 2015

Account Type Balance Total Description Accnt. # Tax Line

40100 · Construction Income:40130 · Labor Income Income 40130 <Unassigned>40100 · Construction Income:40140 · Materials Income Income 40140 <Unassigned>40100 · Construction Income:40150 · Subcontracted Labor IncomeIncome 40150 <Unassigned>40100 · Construction Income:40199 · Less Discounts given Income 40199 <Unassigned>40500 · Reimbursement Income Income 40500 <Unassigned>40500 · Reimbursement Income:40510 · Mileage Income Income Account for reimbursable mile 40510 <Unassigned>40500 · Reimbursement Income:40520 · Permit Reimbursement IncomeIncome 40520 <Unassigned>40500 · Reimbursement Income:40530 · Reimbursed Freight & DeliveryIncome 40530 <Unassigned>50100 · Cost of Goods Sold Cost of Goods Sold QuickBooks Automatically Increases the balance in this account when you use inventory items on invoices or sales receipts.50100 <Unassigned>54000 · Job Expenses Cost of Goods Sold 54000 <Unassigned>54000 · Job Expenses:54100 · Bond Expense Cost of Goods Sold 54100 <Unassigned>54000 · Job Expenses:54200 · Equipment Rental Cost of Goods Sold Equipment Rental 54200 <Unassigned>54000 · Job Expenses:54300 · Job Materials Cost of Goods Sold Job Materials 54300 <Unassigned>54000 · Job Expenses:54400 · Permits and Licenses Cost of Goods Sold Licenses 54400 <Unassigned>54000 · Job Expenses:54500 · Subcontractors Cost of Goods Sold Subcontractors Expense 54500 <Unassigned>54000 · Job Expenses:54520 · Freight & Delivery Cost of Goods Sold Freight and Delivery 54520 <Unassigned>54000 · Job Expenses:54599 · Less Discounts Taken Cost of Goods Sold 54599 <Unassigned>60100 · Automobile Expense Automobile 60100 <Unassigned>60100 · Automobile:60110 · Fuel Expense Fuel Expense 60110 <Unassigned>60100 · Automobile:60120 · Insurance Expense Business Truck Policies 60120 <Unassigned>60100 · Automobile:60130 · Repairs and Maintenance Expense 60130 <Unassigned>60300 · Bad debt Expense 60300 <Unassigned>60400 · Advertising & Promotion Expense 60400 Deductions: Advertising60600 · Bank Service Charges Expense Bank Service Charges 60600 <Unassigned>60900 · Depreciation Expense Expense Depreciation Expense 60900 <Unassigned>61200 · Dues and Subscriptions Expense Dues and Subscriptions 61200 <Unassigned>61500 · Union Dues Expense Union Dues 61500 <Unassigned>62100 · Insurance Expense Insurance 62100 <Unassigned>62100 · Insurance:62110 · Disability Insurance Expense Disability Insurance 62110 <Unassigned>62100 · Insurance:62120 · Liability Insurance Expense Liability Insurance 62120 <Unassigned>62100 · Insurance:62130 · Work Comp Expense Workman's Compensation 62130 <Unassigned>62100 · Insurance:62199 · Less Employee Portion - Health Expense 62199 <Unassigned>62400 · Interest Expense Expense Interest Expense 62400 <Unassigned>62400 · Interest Expense:62410 · Finance Charge Expense Finance Charge 62410 <Unassigned>62400 · Interest Expense:62420 · Loan Interest Expense Loan Interest Expense 62420 <Unassigned>62700 · Payroll Expenses Expense 62700 <Unassigned>62700 · Payroll Expenses:62710 · Gross Wages Expense 62710 <Unassigned>62700 · Payroll Expenses:62720 · Payroll Taxes Expense 62720 <Unassigned>62700 · Payroll Expenses:62730 · FUTA Expense Expense 62730 <Unassigned>62700 · Payroll Expenses:62740 · SUTA Expense Expense 62740 <Unassigned>63000 · Office Supplies Expense Office Supplies 63000 <Unassigned>63100 · Postage Expense 63100 <Unassigned>63600 · Professional Fees Expense Professional Fees 63600 <Unassigned>63600 · Professional Fees:63610 · Accounting Expense Accounting Fees 63610 <Unassigned>63600 · Professional Fees:63620 · Legal Fees Expense Legal Fees 63620 <Unassigned>63900 · Rent Expense Rent 63900 <Unassigned>64200 · Repairs Expense Repairs and Maintenance 64200 <Unassigned>

    Chapter 2 Customizing QuickBooks and the Chart of Accounts 2.5

Computer Accounting with QuickBooks 2014 by Donna Kay ©McGraw-Hill Education, 2015

Account Type Balance Total Description Accnt. # Tax Line

64200 · Repairs:64210 · Building Repairs Expense Building Repairs 64210 <Unassigned>64200 · Repairs:64220 · Computer Repairs Expense Computer Repairs 64220 <Unassigned>64200 · Repairs:64230 · Equipment Repairs Expense Equipment Repairs 64230 <Unassigned>64500 · Taxes Expense Taxes 64500 <Unassigned>64500 · Taxes:64510 · Federal Expense Federal Taxes 64510 <Unassigned>64500 · Taxes:64520 · State Expense 64520 <Unassigned>64500 · Taxes:64530 · Property Expense Property Taxes 64530 <Unassigned>64500 · Taxes:64540 · Local Expense 64540 <Unassigned>64800 · Tools and Machinery Expense Tools and Machinery 64800 <Unassigned>65100 · Utilities Expense Utilities 65100 <Unassigned>65100 · Utilities:65110 · Gas and Electric Expense Gas and Electric 65110 <Unassigned>65100 · Utilities:65120 · Telephone Expense Telephone 65120 <Unassigned>65100 · Utilities:65130 · Water Expense Water 65130 <Unassigned>69000 · Miscellaneous Expense Miscellaneous 69000 <Unassigned>70100 · Other Income Other Income Other Income 70100 <Unassigned>70200 · Interest Income Other Income Interest Income 70200 <Unassigned>80100 · Other Expenses Other Expense Other Expenses 80100 <Unassigned>90100 · Purchase Orders Non-Posting 90100 <Unassigned>90200 · Estimates Non-Posting 90200 <Unassigned>90300 · Sales Orders Non-Posting 90300 <Unassigned>

EXERCISE 2.1 TASK 3 STATEMENT OF CASH FLOWS

2.6 Exploring QuickBooks with Rock Castle Construction

Computer Accounting with QuickBooks 2014 by Donna Kay ©McGraw-Hill Education, 2015

Nov 17

OPERATING ACTIVITIESNet Income 16,507.99Adjustments to reconcile Net Incometo net cash provided by operations:

11000 · Accounts Receivable -2,612.8512100 · Inventory Asset -2,472.8413100 · Pre-paid Insurance 605.8913400 · Retainage Receivable -2,174.5020000 · Accounts Payable 16,210.7720500 · QuickBooks Credit Card -1,025.0020600 · CalOil Credit Card 388.5224000 · Payroll Liabilities:24010 · Federal Withholding 1.0024000 · Payroll Liabilities:24020 · FICA Payable 7.2824000 · Payroll Liabilities:24050 · State Withholding -0.6024000 · Payroll Liabilities:24070 · State Disability Payable -16.6624000 · Payroll Liabilities:24080 · Worker's Compensation 1.6724000 · Payroll Liabilities:24100 · Emp. Health Ins Payable -50.0025500 · Sales Tax Payable -353.74

Net cash provided by Operating Activities 25,016.93

FINANCING ACTIVITIES23000 · Loan - Vehicles (Van) -494.6928100 · Loan - Construction Equipment -216.6128700 · Note Payable - Bank of Anycity -2,675.56

Net cash provided by Financing Activities -3,386.86

Net cash increase for period 21,630.07

Cash at beginning of period 77,921.51

Cash at end of period 99,551.58

EXERCISE 2.1 TASK 4 TO DO LIST

    Chapter 2 Customizing QuickBooks and the Chart of Accounts 2.7

Computer Accounting with QuickBooks 2014 by Donna Kay ©McGraw-Hill Education, 2015

Done Date Description Priority Type With

No 07/27/2012 Call Doug about grout in the kitchen. Low TaskNo 07/27/2012 Call Lynn about back porch. Low TaskNo 07/27/2012 Finish Jacobsen poolhouse estimate Low TaskNo 01/01/2018 Print financial statements for Mr. Castle. High TaskYes 07/27/2012 Call Erika Pretell about new property. Low TaskYes 07/27/2012 Call Patton Hardware Supplies about Mason job. Low TaskYes 12/12/2017 Print financial statements for Mr. Castle. High Task

EXERCISE 2.2 TASK 3 REVISED CHART OF ACCOUNTS

2.8 Exploring QuickBooks with Rock Castle Construction

Computer Accounting with QuickBooks 2014 by Donna Kay ©McGraw-Hill Education, 2015

Account Type Balance Total Description Accnt. # Tax Line

10100 · YourName Checking Bank 46,969.10 Cash 10100 B/S-Assets: Cash10300 · Savings Bank 17,910.19 Savings 10300 B/S-Assets: Cash10400 · Petty Cash Bank 500.00 Petty Cash 10400 B/S-Assets: Cash11000 · Accounts Receivable Accounts Receivable 93,007.93 Accounts Receivable 11000 B/S-Assets: Accts. Rec. and trade notes12000 · Undeposited Funds Other Current Asset 2,440.00 Undeposited Funds 12000 B/S-Assets: Other current assets12100 · Inventory Asset Other Current Asset 30,683.38 Inventory Asset 12100 B/S-Assets: Other current assets12800 · Employee Advances Other Current Asset 832.00 Employee Advances 12800 B/S-Assets: Other current assets13100 · Pre-paid Insurance Other Current Asset 4,050.00 Pre-paid Insurance 13100 B/S-Assets: Other current assets13400 · Retainage Receivable Other Current Asset 3,703.02 Retainage Receivable 13400 B/S-Assets: Other current assets15000 · Furniture and Equipment Fixed Asset 34,326.00 Furniture and Equipment 15000 B/S-Assets: Buildings/oth. depr. assets15100 · Vehicles Fixed Asset 78,936.91 Vehicles 15100 B/S-Assets: Buildings/oth. depr. assets15200 · Buildings and Improvements Fixed Asset 325,000.00 Buildings and Improvements 15200 B/S-Assets: Buildings/oth. depr. assets15300 · Construction Equipment Fixed Asset 15,300.00 Construction Equipment 15300 B/S-Assets: Buildings/oth. depr. assets16900 · Land Fixed Asset 90,000.00 Land 16900 B/S-Assets: Land17000 · Accumulated Depreciation Fixed Asset -110,344.60 Accumulated Depreciation 17000 B/S-Assets: Buildings/oth. depr. assets18700 · Security Deposits Other Asset 1,720.00 Security Deposits 18700 B/S-Assets: Other assets20000 · Accounts Payable Accounts Payable 26,636.92 Moneys you owe to vendors and suppliers 20000 B/S-Liabs/Eq.: Accounts payable20500 · QuickBooks Credit Card Credit Card 94.20 QuickBooks Credit Card 20500 B/S-Liabs/Eq.: Other current liabilities20600 · CalOil Credit Card Credit Card 382.62 20600 B/S-Liabs/Eq.: Other current liabilitiesSubcontracted Federal WH Other Current Liability 0.00 B/S-Liabs/Eq.: Other current liabilities20700 · Due to Owner Other Current Liability 0.00 Short Term Loan from Owner - No Note or Bond 20700 B/S-Liabs/Eq.: Other current liabilities24000 · Payroll Liabilities Other Current Liability 5,404.45 Payroll Liabilities 24000 B/S-Liabs/Eq.: Other current liabilities24000 · Payroll Liabilities:24010 · Federal Withholding Other Current Liability 1,364.00 24010 B/S-Liabs/Eq.: Other current liabilities24000 · Payroll Liabilities:24020 · FICA Payable Other Current Liability 2,118.82 24020 B/S-Liabs/Eq.: Other current liabilities24000 · Payroll Liabilities:24030 · AEIC Payable Other Current Liability 0.00 24030 B/S-Liabs/Eq.: Other current liabilities24000 · Payroll Liabilities:24040 · FUTA Payable Other Current Liability 100.00 24040 B/S-Liabs/Eq.: Other current liabilities24000 · Payroll Liabilities:24050 · State Withholding Other Current Liability 299.19 24050 B/S-Liabs/Eq.: Other current liabilities24000 · Payroll Liabilities:24060 · SUTA Payable Other Current Liability 110.00 24060 B/S-Liabs/Eq.: Other current liabilities24000 · Payroll Liabilities:24070 · State Disability Payable Other Current Liability 48.13 24070 B/S-Liabs/Eq.: Other current liabilities24000 · Payroll Liabilities:24080 · Worker's Compensation Other Current Liability 1,214.31 24080 B/S-Liabs/Eq.: Other current liabilities24000 · Payroll Liabilities:24090 · Direct Deposit Liabilities Other Current Liability 0.00 24090 B/S-Liabs/Eq.: Other current liabilities24000 · Payroll Liabilities:24100 · Emp. Health Ins Payable Other Current Liability 150.00 24100 B/S-Liabs/Eq.: Other current liabilities25500 · Sales Tax Payable Other Current Liability 957.63 Sales Tax Payable 25500 B/S-Liabs/Eq.: Other current liabilities23000 · Loan - Vehicles (Van) Long Term Liability 10,501.47 3/4 Ton PU - 48 months 6.9% purchased 12/01/2005 23000 B/S-Liabs/Eq.: L-T Mortgage/note/bonds pay.23100 · Loan - Vehicles (Utility Truck) Long Term Liability 19,936.91 Loan - Vehicles (Utility Truck) 23100 B/S-Liabs/Eq.: L-T Mortgage/note/bonds pay.23200 · Loan - Vehicles (Pickup Truck) Long Term Liability 22,641.00 Loan - Vehicles (Pickup Truck) 23200 B/S-Liabs/Eq.: L-T Mortgage/note/bonds pay.28100 · Loan - Construction Equipment Long Term Liability 13,911.32 Loan for Construction Equipment 28100 B/S-Liabs/Eq.: L-T Mortgage/note/bonds pay.28200 · Loan - Furniture/Office Equip Long Term Liability 21,000.00 Loan for purchase of furniture and office equipment 28200 B/S-Liabs/Eq.: L-T Mortgage/note/bonds pay.28700 · Note Payable - Bank of Anycity Long Term Liability 2,693.21 28700 B/S-Liabs/Eq.: L-T Mortgage/note/bonds pay.28900 · Mortgage - Office Building Long Term Liability 296,283.00 Mortgage - Office Building 28900 B/S-Liabs/Eq.: L-T Mortgage/note/bonds pay.30000 · Opening Bal Equity Equity 38,773.75 Offset account for use during the setup of the company's QuickBooks data file only.30000 <Unassigned>30100 · Capital Stock Equity 500.00 Capital Stock 30100 <Unassigned>31400 · Shareholder Distributions Equity 0.00 Distributions paid to shareholders 31400 <Unassigned>32000 · Retained Earnings Equity Retained Earnings 32000 <Unassigned>40100 · Construction Income Income Construction Income 40100 <Unassigned>40100 · Construction Income:40110 · Design Income Income 40110 <Unassigned>40100 · Construction Income:40120 · Equipment Rental IncomeIncome 40120 <Unassigned>

    Chapter 2 Customizing QuickBooks and the Chart of Accounts 2.9

Computer Accounting with QuickBooks 2014 by Donna Kay ©McGraw-Hill Education, 2015

Account Type Balance Total Description Accnt. # Tax Line

40100 · Construction Income:40130 · Labor Income Income 40130 <Unassigned>40100 · Construction Income:40140 · Materials Income Income 40140 <Unassigned>40100 · Construction Income:40150 · Subcontracted Labor IncomeIncome 40150 <Unassigned>40100 · Construction Income:40199 · Less Discounts given Income 40199 <Unassigned>40500 · Reimbursement Income Income 40500 <Unassigned>40500 · Reimbursement Income:40510 · Mileage Income Income Account for reimbursable mile 40510 <Unassigned>40500 · Reimbursement Income:40520 · Permit Reimbursement IncomeIncome 40520 <Unassigned>40500 · Reimbursement Income:40530 · Reimbursed Freight & DeliveryIncome 40530 <Unassigned>50100 · Cost of Goods Sold Cost of Goods Sold QuickBooks Automatically Increases the balance in this account when you use inventory items on invoices or sales receipts.50100 <Unassigned>54000 · Job Expenses Cost of Goods Sold 54000 <Unassigned>54000 · Job Expenses:54100 · Bond Expense Cost of Goods Sold 54100 <Unassigned>54000 · Job Expenses:54200 · Equipment Rental Cost of Goods Sold Equipment Rental 54200 <Unassigned>54000 · Job Expenses:54300 · Job Materials Cost of Goods Sold Job Materials 54300 <Unassigned>54000 · Job Expenses:54400 · Permits and Licenses Cost of Goods Sold Licenses 54400 <Unassigned>54000 · Job Expenses:54500 · Subcontractors Cost of Goods Sold Subcontractors Expense 54500 <Unassigned>54000 · Job Expenses:54520 · Freight & Delivery Cost of Goods Sold Freight and Delivery 54520 <Unassigned>54000 · Job Expenses:54599 · Less Discounts Taken Cost of Goods Sold 54599 <Unassigned>60100 · Automobile Expense Automobile 60100 <Unassigned>60100 · Automobile:60110 · Fuel Expense Fuel Expense 60110 <Unassigned>60100 · Automobile:60120 · Insurance Expense Business Truck Policies 60120 <Unassigned>60100 · Automobile:60130 · Repairs and Maintenance Expense 60130 <Unassigned>60300 · Bad debt Expense 60300 <Unassigned>60400 · Selling Expense Expense 60400 Deductions: Advertising60400 · Selling Expense:60410 · Advertising Expense Expense 60410 Deductions: Advertising60400 · Selling Expense:60420 · Promotion Expense Expense 60420 Deductions: Advertising60600 · Bank Service Charges Expense Bank Service Charges 60600 <Unassigned>60900 · Depreciation Expense Expense Depreciation Expense 60900 <Unassigned>61200 · Dues and Subscriptions Expense Dues and Subscriptions 61200 <Unassigned>61500 · Union Dues Expense Union Dues 61500 <Unassigned>62100 · Insurance Expense Insurance 62100 <Unassigned>62100 · Insurance:62110 · Disability Insurance Expense Disability Insurance 62110 <Unassigned>62100 · Insurance:62120 · Liability Insurance Expense Liability Insurance 62120 <Unassigned>62100 · Insurance:62130 · Work Comp Expense Workman's Compensation 62130 <Unassigned>62100 · Insurance:62199 · Less Employee Portion - Health Expense 62199 <Unassigned>62400 · Interest Expense Expense Interest Expense 62400 <Unassigned>62400 · Interest Expense:62410 · Finance Charge Expense Finance Charge 62410 <Unassigned>62400 · Interest Expense:62420 · Loan Interest Expense Loan Interest Expense 62420 <Unassigned>62700 · Payroll Expenses Expense 62700 <Unassigned>62700 · Payroll Expenses:62710 · Gross Wages Expense 62710 <Unassigned>62700 · Payroll Expenses:62720 · Payroll Taxes Expense 62720 <Unassigned>62700 · Payroll Expenses:62730 · FUTA Expense Expense 62730 <Unassigned>62700 · Payroll Expenses:62740 · SUTA Expense Expense 62740 <Unassigned>63000 · Office Supplies Expense Office Supplies 63000 <Unassigned>63100 · Postage Expense 63100 <Unassigned>63600 · Professional Fees Expense Professional Fees 63600 <Unassigned>63600 · Professional Fees:63610 · Accounting Expense Accounting Fees 63610 <Unassigned>63600 · Professional Fees:63620 · Legal Fees Expense Legal Fees 63620 <Unassigned>

EXERCISE 2.3 YOUR CHOICE: LIST OF INDUSTRY-SPECIFIC FEATURES

Students are to select two sample companies of their choice (other than a sample product-based business or a sample service-based business) and list the different industry-specific features.

2.10 Exploring QuickBooks with Rock Castle Construction

Computer Accounting with QuickBooks 2014 by Donna Kay ©McGraw-Hill Education, 2015

Account Type Balance Total Description Accnt. # Tax Line

63900 · Rent Expense Rent 63900 <Unassigned>64200 · Repairs Expense Repairs and Maintenance 64200 <Unassigned>64200 · Repairs:64210 · Building Repairs Expense Building Repairs 64210 <Unassigned>64200 · Repairs:64220 · Computer Repairs Expense Computer Repairs 64220 <Unassigned>64200 · Repairs:64230 · Equipment Repairs Expense Equipment Repairs 64230 <Unassigned>64500 · Taxes Expense Taxes 64500 <Unassigned>64500 · Taxes:64510 · Federal Expense Federal Taxes 64510 <Unassigned>64500 · Taxes:64520 · State Expense 64520 <Unassigned>64500 · Taxes:64530 · Property Expense Property Taxes 64530 <Unassigned>64500 · Taxes:64540 · Local Expense 64540 <Unassigned>64800 · Tools and Machinery Expense Tools and Machinery 64800 <Unassigned>65100 · Utilities Expense Utilities 65100 <Unassigned>65100 · Utilities:65110 · Gas and Electric Expense Gas and Electric 65110 <Unassigned>65100 · Utilities:65120 · Telephone Expense Telephone 65120 <Unassigned>65100 · Utilities:65130 · Water Expense Water 65130 <Unassigned>69000 · Miscellaneous Expense Miscellaneous 69000 <Unassigned>70100 · Other Income Other Income Other Income 70100 <Unassigned>70200 · Interest Income Other Income Interest Income 70200 <Unassigned>80100 · Other Expenses Other Expense Other Expenses 80100 <Unassigned>90100 · Purchase Orders Non-Posting 90100 <Unassigned>90200 · Estimates Non-Posting 90200 <Unassigned>90300 · Sales Orders Non-Posting 90300 <Unassigned>

EXERCISE 2.4 SCHEDULE C TAX FORM

    Chapter 2 Customizing QuickBooks and the Chart of Accounts 2.11

Computer Accounting with QuickBooks 2014 by Donna Kay ©McGraw-Hill Education, 2015

2.12 Exploring QuickBooks with Rock Castle Construction

Computer Accounting with QuickBooks 2014 by Donna Kay ©McGraw-Hill Education, 2015

EXERCISE 2.4 1120S TAX FORM

    Chapter 2 Customizing QuickBooks and the Chart of Accounts 2.13

Computer Accounting with QuickBooks 2014 by Donna Kay ©McGraw-Hill Education, 2015

2.14 Exploring QuickBooks with Rock Castle Construction

Computer Accounting with QuickBooks 2014 by Donna Kay ©McGraw-Hill Education, 2015

    Chapter 2 Customizing QuickBooks and the Chart of Accounts 2.15

Computer Accounting with QuickBooks 2014 by Donna Kay ©McGraw-Hill Education, 2015

2.16 Exploring QuickBooks with Rock Castle Construction

Computer Accounting with QuickBooks 2014 by Donna Kay ©McGraw-Hill Education, 2015

PROJECT 2 CHART OF ACCOUNTS (ACCOUNT LISTING)

    Chapter 2 Customizing QuickBooks and the Chart of Accounts 2.17

Computer Accounting with QuickBooks 2014 by Donna Kay ©McGraw-Hill Education, 2015

Account Type Balance Total Description Accnt. # Tax Line

Barter Account Bank 0.00 Business to Business Barter <Unassigned>Cash Expenditures Bank 225.23 Wash acct for cash expenses <Unassigned>Checking Bank 99,250.02 Great Statewide Bank <Unassigned>Savings Bank 5,987.50 Great Statewide Bank <Unassigned>1200 · Accounts Receivable Accounts Receivable 35,810.02 1200 <Unassigned>Employee advances Other Current Asset 100.00 <Unassigned>Prepaid Insurance Other Current Asset 500.00 <Unassigned>1300 · Inventory Asset Other Current Asset 6,937.08 1300 <Unassigned>1400 · Undeposited Funds Other Current Asset 110.00 1400 <Unassigned>1500 · Truck Fixed Asset 12,025.00 1500 <Unassigned>1500 · Truck:1510 · Original Purchase Fixed Asset 13,750.00 Purchase Price of Asset 1510 <Unassigned>1500 · Truck:1520 · Accumulated Depreciation Fixed Asset -1,725.00 1520 <Unassigned>2000 · Accounts Payable Accounts Payable 2,578.69 2000 <Unassigned>QuickBooks Credit Card Credit Card 70.00 Platinum MasterCard <Unassigned>QuickBooks Credit Card:QBCC Field Office Credit Card 45.00 QBCC for Field Office Manager <Unassigned>QuickBooks Credit Card:QBCC Home Office Credit Card 25.00 QBCC for Management Office <Unassigned>QuickBooks Credit Card:QBCC Sales Dept Credit Card 0.00 QBCC for Sales Office <Unassigned>2100 · CalOil Card Credit Card 1,403.99 2100 <Unassigned>Payments on Account Other Current Liability -1,520.00 Deposits rec'd from customers <Unassigned>2102 · Payroll Liabilities Other Current Liability 5,520.47 2102 <Unassigned>2111 · Direct Deposit Liabilities Other Current Liability 0.00 2111 <Unassigned>2300 · Sales Tax Payable Other Current Liability 2,086.50 2300 <Unassigned>Bank of Anycity Loan Long Term Liability 19,932.65 <Unassigned>Equipment Loan Long Term Liability 3,911.32 <Unassigned>2400 · Bank Loan Long Term Liability 5,369.06 Recapitalization Loan 2400 <Unassigned>3000 · Owner's Equity Equity -5,000.00 3000 <Unassigned>3000 · Owner's Equity:3010 · Owner's Draw Equity -5,000.00 3010 <Unassigned>3000 · Owner's Equity:3020 · Owner's Contributions Equity 0.00 3020 <Unassigned>3100 · Retained Earnings Equity 3100 <Unassigned>3200 · Opening Bal Equity Equity 151,970.07 3200 <Unassigned>Retail Sales Income <Unassigned>Service Income <Unassigned>4100 · Landscaping Services Income 4100 Schedule C: Gross receipts or sales4100 · Landscaping Services:4000 · Design Services Income 4000 Schedule C: Gross receipts or sales4100 · Landscaping Services:4110 · Job Materials Income 4110 Schedule C: Gross receipts or sales4100 · Landscaping Services:4110 · Job Materials:Misc MaterialsIncome <Unassigned>4100 · Landscaping Services:4110 · Job Materials:4111 · Decks & PatiosIncome 4111 Schedule C: Gross receipts or sales4100 · Landscaping Services:4110 · Job Materials:4112 · Fountains & Garden LightingIncome 4112 Schedule C: Gross receipts or sales4100 · Landscaping Services:4110 · Job Materials:4113 · Plants and SodIncome 4113 Schedule C: Gross receipts or sales4100 · Landscaping Services:4110 · Job Materials:4114 · Sprinklers & Drip systemsIncome 4114 Schedule C: Gross receipts or sales4100 · Landscaping Services:4120 · Labor Income 4120 Schedule C: Gross receipts or sales4100 · Landscaping Services:4120 · Labor:4121 · InstallationIncome 4121 Schedule C: Gross receipts or sales4100 · Landscaping Services:4120 · Labor:4122 · Maintenance & RepairsIncome 4122 Schedule C: Gross receipts or sales4100 · Landscaping Services:4130 · Equipment Rental Income 4130 Schedule C: Gross receipts or sales4200 · Discounts Income 4200 Schedule C: Gross receipts or sales4300 · Other Income Income 4300 Schedule C: Other business income4400 · Markup Income Income 4400 Schedule C: Gross receipts or sales4999 · Uncategorized Income Income 4999 Schedule C: Other business income5000 · Cost of Goods Sold Cost of Goods Sold 5000 Schedule C: Materials/supplies, COGS6000 · Advertising Expense 6000 Schedule C: Advertising6100 · Amortization Expense Expense 6100 <Unassigned>6200 · Automobile Expense 6200 Schedule C: Car and truck expenses6200 · Automobile:Insurance Expense <Unassigned>6200 · Automobile:License & Fees Expense <Unassigned>6200 · Automobile:6210 · Fuel Expense 6210 Schedule C: Car and truck expenses6200 · Automobile:6220 · Maintenance & Repairs Expense 6220 Schedule C: Car and truck expenses6300 · Bad Debt Expense 6300 Schedule C: Bad debts from sales/services6400 · Bank Service Charges Expense 6400 Schedule C: Interest expense, other6500 · Bond Expense Expense 6500 Schedule C: Interest expense, other6561 · Payroll Expenses Expense 6561 <Unassigned>6600 · Delivery Fee Expense 6600 Schedule C: Other business expenses6700 · Depreciation Expense 6700 Schedule C: Depletion6700 · Depreciation:6710 · Section 179 Expense 6710 Schedule C: Other business expenses6800 · Dues and Subscription Expense 6800 Schedule C: Legal and professional fees6900 · Insurance Expense 6900 Schedule C: Insurance, other than health6900 · Insurance:6910 · Disability Expense 6910 Schedule C: Insurance, other than health6900 · Insurance:6920 · Liability Expense 6920 Schedule C: Insurance, other than health6900 · Insurance:6930 · Worker's Comp Expense 6930 Schedule C: Insurance, other than health6999 · Uncategorized Expenses Expense 6999 <Unassigned>7000 · Interest Expense Expense 7000 Schedule C: Interest expense, other7000 · Interest Expense:7010 · Finance Charges Expense 7010 Schedule C: Interest expense, other7000 · Interest Expense:7020 · Interest on Loan Expense 7020 Schedule C: Interest expense, other7100 · Job Expenses Expense 7100 Schedule C: Other costs, COGS7100 · Job Expenses:7110 · Job Materials Expense 7110 Schedule C: Materials/supplies, COGS7100 · Job Expenses:7110 · Job Materials:7111 · Decks & PatioExpense 7111 Schedule C: Materials/supplies, COGS

2.18 Exploring QuickBooks with Rock Castle Construction

Computer Accounting with QuickBooks 2014 by Donna Kay ©McGraw-Hill Education, 2015

Account Type Balance Total Description Accnt. # Tax Line

7100 · Job Expenses:7110 · Job Materials:7112 · Fountains & Garden LightingExpense 7112 Schedule C: Materials/supplies, COGS7100 · Job Expenses:7110 · Job Materials:7113 · Plants & SodExpense 7113 Schedule C: Materials/supplies, COGS7100 · Job Expenses:7110 · Job Materials:7114 · Sprinkler's & Drip SystemsExpense 7114 Schedule C: Materials/supplies, COGS7100 · Job Expenses:7120 · Equipmental Rental Expense 7120 Schedule C: Rent/lease vehicles, equip.7100 · Job Expenses:7130 · Permits Expense 7130 Schedule C: Other costs, COGS7100 · Job Expenses:7140 · Subcontractors Expense 7140 Schedule C: Labor, cost of goods7200 · Miscellaneous Expense 7200 Schedule C: Other business expenses7250 · Mileage Reimbursement Expense 7250 Schedule C: Car and truck expenses7300 · Office Supplies Expense 7300 Schedule C: Office expenses7310 · Supplies Expense 7310 Schedule C: Supplies (not from COGS)7320 · Computer Supplies Expense 7320 Schedule C: Supplies (not from COGS)7400 · Professional Fees Expense 7400 Schedule C: Legal and professional fees7400 · Professional Fees:7410 · Accounting Expense 7410 Schedule C: Legal and professional fees7400 · Professional Fees:7420 · Legal Expense 7420 Schedule C: Legal and professional fees7400 · Professional Fees:7430 · Professional Design Fees Expense 7430 Schedule C: Legal and professional fees7500 · Rent Expense 7500 Schedule C: Rent/lease other bus. prop.7550 · Repairs Expense 7550 Schedule C: Repairs and maintenance7550 · Repairs:7551 · Building Repairs Expense 7551 Schedule C: Repairs and maintenance7550 · Repairs:7552 · Computer Repairs Expense 7552 Schedule C: Repairs and maintenance7550 · Repairs:7553 · Equipment Repairs Expense 7553 Schedule C: Repairs and maintenance7600 · Taxes Expense 7600 Schedule C: Taxes and licenses7600 · Taxes:7610 · Federal Expense 7610 Schedule C: Taxes and licenses7600 · Taxes:7620 · Property Expense 7620 Schedule C: Taxes and licenses7600 · Taxes:7630 · State Expense 7630 Schedule C: Taxes and licenses7700 · Tools and Misc. Equipment Expense 7700 Schedule C: Other business expenses7750 · Utilities Expense 7750 Schedule C: Utilities7750 · Utilities:7751 · Gas and Electric Expense 7751 Schedule C: Utilities7750 · Utilities:7752 · Water Expense 7752 Schedule C: Utilities7750 · Utilities:7753 · Telephone Expense 7753 Schedule C: Office expenses7750 · Utilities:7754 · Internet Provider Expense 7754 Schedule C: Office expensesMisc Income Other Income <Unassigned>8000 · Interest Income Other Income 8000 Schedule C: Other business income9000 · Other Expenses Other Expense 9000 Schedule C: Other business expensesPurchase Orders Non-Posting <Unassigned>5 · Sales Orders Non-Posting 5 <Unassigned>

PROJECT 2 STATEMENT OF CASH FLOWS

    Chapter 2 Customizing QuickBooks and the Chart of Accounts 2.19

Computer Accounting with QuickBooks 2014 by Donna Kay ©McGraw-Hill Education, 2015

Oct '16 - Sep 17

OPERATING ACTIVITIESNet Income -83,760.14Adjustments to reconcile Net Incometo net cash provided by operations:

1200 · Accounts Receivable -3,346.94Prepaid Insurance -700.001300 · Inventory Asset -3,233.472000 · Accounts Payable -2,132.802100 · CalOil Card 1,256.49Payments on Account -1,520.002102 · Payroll Liabilities 4,172.742300 · Sales Tax Payable 1,201.30

Net cash provided by Operating Activities -88,062.82

INVESTING ACTIVITIES1500 · Truck:1520 · Accumulated Depreciation 575.00

Net cash provided by Investing Activities 575.00

FINANCING ACTIVITIESBank of Anycity Loan 20,801.07Equipment Loan 4,343.112400 · Bank Loan -7,154.823100 · Retained Earnings 43,954.663200 · Opening Bal Equity -67,600.63

Net cash provided by Financing Activities -5,656.61

Net cash increase for period -93,144.43

Cash at beginning of period 220,050.40

Cash at end of period 126,905.97