Live Tutorial Tuesday Part 2 – Financial Accounting Excel & QuickBooks – Journal entries business

This comprehensive problem will be unorthodox by putting the theory and software side by side, by showing how the software uses the theory as we go, by showing the relevance of theory in the use of software as we learn, the hope being that this understanding of application will help motivate learning and persevering through learning theory. We will be recording start up journal entries for a new company, entries most every new business needs to set up. We will record these entries both in Excel as well as in QuickBooks and will provide a live Google Sheet that can be used to work the problem as a group during the presentation and, or, can be used to copy to your Google account for future use. When working with both students and business owners, I have noticed that we often have a disconnect between accounting theory and accounting practical business use. Business owners often have some experience with QuickBooks or some other accounting software and do not see a clear relationship to the journal entries that software uses and students often feel like they are putting a lot of faith in accounting theory being useful down the road, knowing that computer software will likely be used in practice. We will show both aspects at the same time. If you have Excel I highly recommend downloading the Excel worksheet and working the problem with us or working the problem later with the recording as a guide. If you do not have Excel you can make a copy of the Google Sheet, Google Sheets being free for anybody who has a Google account. If we do not have access to Excel, or even if we do, I highly recommend getting familiar with Goodle Sheets. We have also provided access to a QuickBooks backup file but we do not expect everyone to have access to QuickBooks. If you do not have access to QuickBooks do not worry. We want to present QuickBooks as an example of how the theory is applied. We can learn the details of QuickBooks at another time.

Closing Step 2 of 4 / Journal Entry 2 of 4

Closing process journal entry 2 of 4 in the 4 step closing process. The closing process is the financial accounting process of closing the temporary accounts, income statement accounts and draws, to the equity section, closing process being the final process in the accounting cycle closing out one accounting period for another accounting period to start, the new accounting period starting with temporary accounts of zero to accumulate. The closing process is often done in four steps, closing out revenue to the income summary account, followed by closing out expenses to the income summary account, then closing out the income summary account to the capital account, and finally closing out draws to the capital account. The closing process is done at the end of the period, all closing entries being posted as of the end of the period. After the closing process, we are left with the post-closing trial balance, the post-closing trial balance looking much like the adjusted trial balance having the same permanent accounts including asset and liabilities and capital, although the capital account will now include the balance of the capital account and all temporary accounts. The income statement account and draws will be zero, often represented on a post-closing trial balance by having no income statement.
Why Learn Accounting – Financial Accounting / Managerial Accounting
101 Double Entry Accounting System Explained – Accounting Equation
101 Cash vs Accrual – Cash Method / Accrual method differenc
101 Revenue Recognition Principle
Double Entry Accounting System Explained – Balance Sheet
101 Income Statement Introduction
101 Accounting Objectives – Relevance Reliability Comparability
101 Transaction Rules – Accounting Equation
101 Transaction Throught Process / Steps – Accounting Equation
101 Owner Deposits Cash Transaction Accounting Equation
101 Work Completed for Cash Transaction Accounting Equation
100.110 Pay Employee with Cash Transaction Accounting Equati
200 Debits & Credits Normal Balance – Double Entry Accounting Sy
200 Debits & Credits – One Rule to Rule Them All