Enter the date the company began using quickbooks in

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• Enter the date the company began using QuickBooks in the “Date” field.• Enter a number in the “Entry No.” field to identify the journal entry.
NOTEQuickBooks automatically enters journal entry numbers unlessthe preference is turned off. To turn off the preference, usersshould select “Preferences” from the “Edit” menu. Then selectthe “Accounting” icon from the scroll-down menu. On the“Company Preferences” tab remove the check mark in the“Automatically assign general ledger journal entry number” boxand select “OK.”• Select “Sales Tax Payable” from the drop-down list in the “Account” column.• Enter the amount of sales tax due as of the QuickBooks start date in the “Credit”column. (Enter an amount in the “Debit” column if the company pays sales tax inadvance or if a credit is due the company.)• Select the name of the applicable tax agency from the drop-down list in the “Name”column.• Enter separate sales tax payable lines for each tax agency to which taxes are due.• In a new line of the journal entry, select “Opening Bal Equity” from the drop-down list inthe “Account” column. QuickBooks automatically calculates the debit amount.NOTEThe general journal entry screen on QuickBooks AccountantDesktop includes a list of journal entries that were createdpreviously. Users can customize the view to include journalentries from a designated time period (e.g., current month,previous year, current fiscal year, etc.). This feature makes itmuch easier to find previous journal entries—especially if theuser completes the memo field describing the transaction.203.37 Alternatively, QuickBooks users can record the opening sales tax payable balance byselecting “Chart of Accounts” from the “Lists” menu and double-clicking on the “Sales TaxPayable” account. This opens the “Sales Tax Payable” register. On the first blank line of theregister, users should enter the following information:Date.Enter the QuickBooks start date.Vendor.Enter the tax agency.
Account.Select “Opening Bal Equity” from the drop-down list.Billed.Enter the sales tax payable balance for the specified tax agency.Record.Click on the “Record” button and repeat the preceding steps for each taxagency with a sales tax due amount as of the QuickBooks start date.203.38 QuickBooks users that created the opening sales tax payable balance by enteringhistorical sales transactions for the current period also may have a sales tax payable balancecarried over from the prior year. In that case, the prior year balance should be set up via ajournal entry or via the “Sales Tax Payable” register, as described in the precedingparagraphs. QuickBooks users should verify that the beginning sales tax payable amount isincluded when they select “Sales Tax” and then “Pay Sales Tax” from the “Vendors” menu.

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Term
Fall
Professor
NoProfessor
Tags
Taxation in the United States

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