aaChapter 2 Chart of Accounts a 2.1
Activity 2.1: To Do List
Scenario
When you return to your cubicle after lunch, you find the following note stuck to your computer screen.
In addition to printing out the statement of cash flows, you decide to add a task to your QuickBooks To Do List to remind you to print out the financial statements for Rock Castle each month.
Task 1: Restore Company File
Note: It is not necessary to restore if you already have the QBW file open from Chapter 2. Proceed to Step 6 for directions to change the Company name to [your name] Activity 2.1.
If your QuickBooks working file (.QBW) for Chapter 2 is not available, restore the backup file for Chapter 2 from the floppy disk to the C drive as follows.
Restore
Floppy Disk (A:)Hard Drive (C:)
Filename: Filename:
[your name] Chapter 2[your name] Rock Castle.QBW
Rock Castle Backup.QBB
(Additional Restore instructions appear in Chapter 1.)
Step 1: Insert your Chapter 2 backup floppy disk into drive A.
Step 2:Click Restore a backup file (or click File, Restore).
Step 3:Identify the backup file as shown below.
Filename: [your name] Chapter 2 Rock Castle Backup.QBB.
Location: A:.
Step 4:Identify the restored file:
Filename: [your name] Rock Castle.QBW.
Location: C:\Program Files\Intuit\QuickBooks Pro (or QuickBooks Premier).
Step 5:Click Restore. Your backup file will be restored to the C drive. Note that since you used the same filename as the previous working file ([your name] Rock Castle.QBW), this will overwrite any previous file by the same name.
If prompted, enter your User ID and Password.
Step 6:Change the company name to: [your name] Activity 2.1 Rock Castle Construction.
If necessary, change the Checking Account title to include your name.
Task 2: Add a Task to the To Do List
Add a task to your To Do List to prepare financial statements for Mr. Castle each month. You will add the task for December and January.
To add a task to the To Do List, complete the following steps:
Step 1:Open the Company Navigator. (Click Company in the Navigators Window.)
Step 2:Click the To-Do’s icon.
Step 3:Click the To Do button in the lower left corner of the To Do List window.
Step 4:Click New.
Step 5:Enter the December task: Print financial statements for Mr. Castle. Remind me on: 12/12/2003.
Step 6:Click the Next button to add another task.
Step 7:Enter the January task: Print financial statements for Mr. Castle. Remind me on: 01/01/2004.
Step 8:Click OK to save the task and close the window.
Task 3: Print Statement of Cash Flows
The Statement of Cash Flows summarizes a company’s cash inflows and cash outflows. The cash flows are grouped by activity:
Cash flows from operating activities: Cash flows related to the operations of the business—providing goods and services to customers.
Cash flows from investing activities: Cash flows that result from investing (buying and selling) long-term assets, such as investments and property.
Cash flows from financing activities: Cash flows that result from borrowing or repaying principal on debt or from transactions with owners.
Print the Statement of Cash Flows for Rock Castle Construction by completing the following steps:
Step 1:Click Reports in the Navigator window to open the Report Finder window.
Step 2:Select type of report: Company & Financial.
Step 3:Select report: Statement of Cash Flows.
Step 4:Select the date range: Last Month. The From field should now be: 11/01/2003. The To field should be: 11/30/2003.
Step 5:Click the Display button to view the Statement of Cash Flows on your screen.
Step 6:Next, insert your name Activity 2.1 to the report footer to identify your printout:
Click the Modify Report button.
Click the Header/Footer tab in the ModifyReport window.
Check Extra Footer Line. Then enter your nameActivity 2.1 in the Extra Footer Line field.
Click OK to save your changes and close the Modify Report window.
Step 7:Print the Statement of Cash Flows. Click the Print button at the top of the Statement of Cash Flows window. Select the appropriate printer. Select Portrait orientation. Select Fit to 1 page(s) wide. Then click Print to print the Statement of Cash Flows.
Step 8:Close the Statement of Cash Flows window, saving the Memorized Report as Statement of Cash Flows.
Step 9:Then close the Report Finder window.
Step 10: Circle the net change in cash for the period on the Statement of Cash Flows printout.
Task 4: Mark Task Complete
Mark the task to print November financial statements as completed.
To mark a task complete:
Step 1:Open the To Do window.
Step 2:Select the To Do task: 12/12/2003 Print financial statements for Mr. Castle.
Step 3:With the mouse pointer on the selected task, right-click. When the onscreen menu appears, select Mark as Done.
A should now appear in front of the task and the task drops to the bottom of the To Do List.
Step 4:Print the To Do List as follows:
Click the Reports button (at the bottom of the To Do window).
Click Detail List.
Insert your nameActivity 2.1 in the report footer. (Click Modify Report button.)
Click Print. Select Print to: Printer. Click Print.
Close the To Do windows.
Task 5: Back Up Activity 2.1 File
Back up the Activity 2.1 file to a floppy disk.
Backup
Hard Drive (C:) Floppy Disk (A:)
Filename: Filename:
[your name] Rock Castle.QBW[your name] Activity 2.1
Rock Castle Backup.QBB
Step 1: Insert your Chapter 2 backup disk in drive A.
Step 2:Click File, Back Up.
Step 3:Specify the backup filename: [your name] Activity 2.1 Rock Castle Backup.QBB. Specify location: A:.
Step 4:Click OK to backup Activity 2.1 to your backup floppy disk. If you are not proceeding to Activity 2.2, close the company file. (From the File menu, select Close Company.)
You have now backed up Activity 2.1 file to your floppy disk.
Activity 2.2: Edit Chart of Accounts
Scenario
When you return to your cubicle after your afternoon break, another note is stuck to your computer screen.
In order to track advertising costs separately from promotion costs, you decide to make the following changes to the chart of accounts.
- Rename Account 6040 Advertising & Promotion account to: Selling Expense.
- Add two subaccounts: 6041 Advertising Expense and 6042 Promotion Expense.
After these changes, the chart of accounts should list the following accounts:
Account 6040: Selling Expense
Subaccount 6041: Advertising Expense
Subaccount 6042: Promotion Expense
Task 1: Restore Company File
Note: It is not necessary to restore if you already have the QBW file open from Activity 2.1. Proceed directly to Step 6.
If your QuickBooks working file (.QBW) for Activity 2.1 is not available on the C: drive, restore your Activity 2.1 backup file from the floppy disk to the C drive as follows.
Restore
Floppy Disk (A:)Hard Drive (C:)
Filename: Filename:
[your name] Activity 2.1[your name] Rock Castle.QBW
Rock Castle Backup.QBB
Step 1: Insert the Chapter 2 backup floppy disk into drive A.
Step 2:Click Restore a backup file (or click File, Restore).
Step 3:Identify the backup filename and location:
Filename: [your name] Activity 2.1 Rock Castle Backup.QBB.
Location: A:.
Step 4:Identify the restored file:
Filename: [your name] Rock Castle.QBW.
Location: C:\Program Files\Intuit\QuickBooks Pro (or QuickBooks Premier).
Step 5:Click Restore. Your backup file will be restored to the C drive. Note that since you used the same filename as the previous working file ([your name] Rock Castle.QBW), this will overwrite the previous file by the same name.
If prompted, enter your User ID and Password.
Step 6:Change the company name to: [your name] Activity 2.2 Rock Castle Construction.
If necessary, change the checking account title to include your name.
Task 2: Edit Account
Edit the chart of accounts to change the name of Account 6040 from Advertising & Promotion to Selling Expense.
Step 1:Open theChart of Accounts window. (Open the Company Navigator, then click the Chart of Accounts icon.)
Step 2:Select account: 6040 Advertising & Promotion.
Step 3:Click the Account button at the bottom of the Chart of Accounts window, then select Edit from the drop-down menu.
Step 4:Change the account name from Advertising & Promotion to: Selling Expense.
Step 5:Click OK to save the changes.
Task 3: Add Subaccounts
Add two subaccounts to the Selling Expense account:
(1) Advertising Expense and (2) Promotion Expense.
Step 1:Click the Account button at the bottom of the Chart of Accounts window, then select New to open the New Account window.
Step 2:Select Account Type: Expense.
Step 3:Enter Account Number: 6041
Step 4:Enter Account Name: Advertising Expense.
Step 5:Check the checkbox in front of the Subaccount of field.
Step 6:From the drop-down list, select subaccount of: 6040 Selling Expense.
Step 7:From the drop-down list for Tax Line, select SchC: Advertising.
Step 8:Click Next. Using the instructions above, add the next subaccount: 6042 Promotion Expense.
Step 9:Print the revised chart of accounts. (Hint: From the Chart of Accounts window, click the Reports button, then click Account Listing. Remember to include your name and Activity 2.2 in the report footer and use Portrait orientation and Fit to 1 page(s) wide. To use the Memorized Report, Chart of Accounts, select Reports from the menu, select Memorized Reports, then Charts of Accounts.)
Task 4: Back Up Activity 2.2 File
Back up the Activity 2.2 file to a floppy disk.
Backup
Hard Drive (C:) Floppy Disk (A:)
Filename: Filename:
[your name] Rock Castle.QBW[your name] Activity 2.2
Rock Castle Backup.QBB
Step 1: Insert the Chapter 2 backup disk in drive A.
Step 2:Click File, Back Up.
Step 3:Save to the backup filename: [your name] Activity 2.2 Rock Castle Backup.QBB. Specify location: A:.
Step 4:Click OK to backup Activity 2.2 to your backup floppy disk. Insert additional floppy disks when prompted if necessary. Close the company file. (From the File menu, select Close Company.)
You have now backed up the Activity 2.2 file to your floppy disk.
©The McGraw-Hill Companies, Inc., 2004