 QuickBooks Online 2023, Adjusting Entry and Reversing Entry Journal Reports. Get ready to start moving on up with QuickBooks Online 2023. Here we are in our Get Great Guitars practice file. We started up in a prior presentation using the 30-day free trial. We also have open the free QuickBooks Online sample company. If you want the two open at the same time, we suggest Incognito. Support Accounting Instruction by clicking the link below, giving you a free month membership to all of the content on our website, broken out by category, further broken out by course, each course then organized in a logical, reasonable fashion, making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems, PDF files, and more like QuickBooks backup files when applicable. So once again, click the link below for a free month membership to our website and all the content on it. Or you can use another browser. You can open Incognito window if using Google Chrome by selecting the three dots in the browser. Incognito window typing into the search engine, QuickBooks Online, Test Drive. We're using the sample company to compare the Accounting View, the one Get Great Guitars is in, and the Business View, the one the sample company is in. You can toggle between the two views by going to the cog up top and switch the view down below. We're now going to be duplicating some tabs to put reports in like we do every time. We're going to right-click on the tab up top to duplicate it. Duplicate a tab that's thinking right now. We're going to right-click on it to duplicate it again. We're going to go back to the tab that we duplicated in the first place, which is in the middle currently, and down to the reports on the left-hand side. Open up the balance sheet report. Let's take a look at where those reports are located in the Business View, by the way, which are in the Business Overview. Then the reports on the left-hand side bringing it back to the Get Great Guitars tab to the right. Open up the reports on the left. We want to take a look at the profit and loss, and then close up the buggy, and then we'll change the range up top. Let's bring it all the way from 01, 01, 2, 3 to let's go to 03, 31, 2, 3. The cutoff date is 228, but we're going to go to 03, 31 to see the activity for the reversing entries. Let's look at month-by-month transactions. Let's run it back to the balance sheet then changing the range. We've got closing of the hand buggy. Change the range. We're going from 01, 01, 2, 3 to 03, 31, 2, 3. We're going to look at it on a month-by-month breakout as well, and then we will run that one too. We've been entering two months of data input. We're imagining we're processing the financial statements for external reporting as of the cutoff date 228. We entered the adjusting entries as of 228, and then for those that needed a reversing entry, we went into the reversing entry as of March. Now you can think about producing your financial statements at the end of this timeframe. Obviously, if you're preparing external reports, then you might go through the similar process as we have seen in the past, saving your reports that you might be grouping for external reporting purposes, or if you're a bookkeeper possibly providing those to a client. As we saw, we could go to the tab to the left. We could go to the reports on the left-hand side, and in prior sections we went to our customized reports, and we started to customize our reports for external reporting, possibly grouping them under the categories of months, for example, and we looked at possibly having a summary, a balance sheet standard, an income statement summary, an income statement, comparative balance sheets, and comparative income statements, and so on and so forth, which you can set up and possibly number so that you can provide them to a client or external reporting once you generate these reports. Then you could email them one at a time. You could print them. You could then export them to a PDF file, and then possibly put them into a zipped file, and then provide them on a cloud drive maybe, or you could email a zipped file, or you can use Excel and possibly Word and Alignment, or just Excel to put them all on one PDF file using a PDF printer, such as the Qt PDF printer, or if I go back to the tab to the left, you can use your management report tools, which gives you this nice little format to put everything on one PDF file to a little bit more limited than exporting to Excel, but that's a great tool as well. So for now, we just want to kind of review where we stand at this point in time. This is our balance sheet. This is our income statement. We're also going to open up a trial balance to check our numbers, and then we'll take a look at the journal reports as well, noting that the journal reports, especially if you work in like an account, a CPA firm or a tax preparation firm or something like that, and you have a difference between when you're entering the adjusting entries and when the bookkeeping or accounting department is doing their side of things, we have to communicate what was done with the adjusting entries, which means we want to generate reports which are showing just the adjusting and reversing entries so we can explain what has been done to the other department, the accounting department. So let's open up a trial balance. I'm going to right-click, duplicate, and open up a trial balance as well. So let's go down to the reports on the left-hand side, and I'm going to open up a trial balance. So let's go into the standard reports. Type in trial balance. So this is where we stand in terms of just the trial balance, which I think is the easiest to report to check our numbers. So we want to go from 013123 to 033123, and then I'm going to see it on a month-by-month side-by-side. So there's our trial balance. So you can check your numbers as of the cutoff date and also your numbers after the reversing entries in March and see if we're in the same place. Now note that if your numbers matched our numbers before entering the adjusting journal entries as of the date 228, then the difference between where we stood before and where we stand now should be reflected in the journal reports that we will create as of 228 for the adjusting entries that we have entered. And then, of course, the difference between where we stood before and where we stand now in the month after March, month after the cutoff date, will also reflect the reversing entries, which we will also run a report for. Let's start out with a report showing all the transactions since January 31st. So we're going to run a transaction detail report, which will show us the difference between where we stood in basically January, the January trial balance, and then to February. So let's do that first. I'm going to go to the tab to the right click and duplicate the tab. We're going to go down to the reports on the left-hand side. So we'll say the reports and I'm just going to type in to find it the transaction, transaction detail report, not by account, but by date, transaction detail by date. This one, transaction list by date. Okay, let's go into that and I'm going to run it for 0201 23 to 0228 23. So this is going to be all the stuff that takes us from the balance as of the end of January to the end of February. And it's going to include the journals that we put in place as well. Now this is going to be the one that gives us the date, the transaction type ordered by date, rather than by account. And it gives us the name, the memo, the account, which is the primary account and then the split account, the other accounts impacted, but if there's more than two accounts impacted, it gives us that split. So this is what the detail is there. Now if I wanted to sort this down and just look at the journal type of transactions, I could take this report and then filter it down to just the journals. Here's all the entries that we made on 0228 with our adjusting entries. I could go up top and say if I want to zero down on those, I could go to customize and say I want to filter by transaction type. And let's just see the journal entry type of transactions. So now I've got just the journal transactions. And then again, I could further limit it down. If I just want to limit it by date, I can limit it down to just those that happen on 0228 23. And so now we could see basically the journal transactions. Now, of course, the other side isn't definite over here because we have the splits. I could do this a similar thing with the journal reports. So let's go to the journal reports and do this, tab to the right, right click and duplicate. And I'm going to go to the reports on the left-hand side and then close up the hamburger. I'm going to type in journal, journal report. So we've been looking at these as we do the data input. And let's run it for the full month again from 020123 to 022823. And then run it. So now we've got all the all the transactions showing the journal entry, not just for the journal forms, but for all of the forms, which again is a great tool to see all the detail that is happening for all the transactions taking us from the end of January to the end of February. And of course, at the bottom of this again, we should see all of our actual journal type form reports. So if I scroll all the way down, here's our journal entries for the adjusting entries. So then now I can filter down on those. I can go, okay, let's filter down on customize, filter and just look at the transaction type, a journal type of report and run that. So now we've got just the journals. Now I'm going to further limit it by date because I entered all my journal entries as of 228. So I'm going to say this is 022823 to 0228. So now I have a report that's pretty specific. It's not completely specific because I still have these other two that aren't actual adjusting entries. So you can narrow it down pretty well by running these because remember that most of the data entry transactions are not in the form of journal entries, although journal entries are created in terms of the debits and credits that are happening, but they're entered with all these other forms. So when I'm trying to run just my period end activity, I can use this journal report and I can trim it down by date, by transaction type. And then I can also see that these are the adjustments because it says adjusting entry here. So then I might further want to customize this possibly by exporting it to Excel so I can delete maybe these top two and provide them to a client because it's useful if there's a difference between who's doing the adjusting entries and who's doing the bookkeeping. If the bookkeeping has a question and they're saying, hey, you did something funny over there, you can at least look and say, hey look, these are the journal entries that we made and you can print them out and show a client what you did in terms of the adjusting entries so each side can be aware of them. So to further drill this down so I don't confuse these other two transactions, I might export it to Excel, hit the dropdown. I'm going to export to Excel. And let's drag that in to my item over here. And so I'm going to then rename it. I'm going to right click and rename it and I'm going to call this adjusting entries something like that and then I can open it up and say that I don't want these top two up there. So I can go tab to the right, tab to the left. It's going to be a long report so I need to clean it up a little bit so I could say, all right, this is pretty much going to have to be a landscape, I think. So I'm going to go to this page layout. I'm going to orientate it to landscape so that doesn't help me out too much. Notice that this total column, I don't really need this whole row just so I can put a total down there. But if I delete it, this is where this top thing I don't like that it uses these, if I want this header, I can't delete column A because they've used this, going to the tab to the left, this merge. So I'm going to unmerge this whole thing, unmerge, unmerge, and then unmerge. I'm going to copy this whole thing or I can right click and cut it and then paste it. So now I can delete column A, which I don't need and the number doesn't look like I have any names here. The names column is completely not used. So I'm just going to put my cursor on column D and delete it. I probably don't need the transaction type anymore because these are all journal forms but maybe I want to keep that and then I might make the memo a little bit shorter. Then I might wrap the text. Notice that the text is wrapped here. It's already wrapped. So if I go up top, they've wrapped the text. So that is that. I might do the same on these here. I might wrap the text so I can make the description a little bit shorter that won't make it too long to the report. Make it so it fits on one page and then I like to select all of the text and show it on top. So I'm going to go boom, show it that way. So the text is on top and then I might just go to all of these and just double click on them just to make sure they're as wide as they need to be. So there you have it. That's how it fits on one page. And if I want to expand this again, I could take this out to the end of the page which is right here. And then instead of merging it back this way by merging it, I tend to like to use this other tool which you can right click and say format cells and then align it this way, center across. So that way it doesn't actually merge the cells but it still kind of puts it in the middle. And then I can do the same thing here. I can select these, right click and format and then drop down and center across and then select these, right click and then format and center across. So there is that. And now I can present this. I can export it to a PDF if I need to from here after I've kind of cleaned it up so I can give it to someone that looks kind of nice and I can do other things to it like I could take my header and I can make it black and white as we've been doing in the past. And I might put my grid lines down here if I want to. I could put the grid lines in if that would be something useful. These all have another underline under them so I might just take not that one. I might take like all of this stuff and put an underline under these because they're total totals and so I might put an underline that way or something and then I might put like a double underline over here whatever you want to do on the formatting. And then I'm also going to scroll up and delete these top two because these are not adjusting journal entries that's part of the point that we exported this here so I'm going to go from column or row 6 and drag down to 13 and then right click and delete. Right click and delete. So now we've just got our adjusting journal entries does that throw off the total here? The total is hard coded down here so I don't think that total is relevant so I'm going to remove the total too. I'm going to put my cursor on 36 and 37 right click and delete. So there we have the information so I think that looks pretty good if we just recap what we did we did an adjusting entry for the interest to record the accrued interest which we had incurred but had not yet paid we entered an adjusting entry for an invoice that was entered after the cutoff date that we needed to pull back in before the cutoff date this one both of these are going to have a reversing entry that we'll see related to them and then this one down here was the prepaid insurance account so we put everything when we entered the insurance we put it into a prepaid insurance and then we recorded the amount of the insurance which is an expense the portion of the insurance that is an expense as it has been consumed this is a permanent difference so we're not going to have a reversing entry here we did a recording of depreciation according to the amortization schedule another permanent difference same with this one it's a permanent difference we're not going to reverse it and then we have the accounts receivable transaction for the deposit an unearned revenue kind of situation but slightly different than what you might normally see in a book problem this is one that we're going to reverse which we will see shortly and then we had the breakout between short-term and long-term purposes of the loan which is also one that we're going to be reversing so let's save this and let's just make our reversing entry transactions now so I'm going to go back on over it and I'm just going to up this to one day to three one now these are the reversing entries you'll note that not all of the adjusting entries have a reversing entry because we need to determine which are going to be temporary and which are permanent so we don't have any other issues with other journal reports here but let's go ahead and export this to Excel too so I'm going to hit the drop-down export it to Excel and then I'm going to open it up this time and I'm going to copy the data and put it into my other worksheet so I have the two tabs on one sheet I'm going to enable the editing put my cursor in the triangle right-click and copy and then I'm going to go back on over to my other Excel sheet add another tab double-click these are going to be reversing and if I double-click on this one these are the adjusting entries versus the reversing I got to put my cursor in A1 or select the entire sheet with the triangle to paste it and there we have it I'll just do the formatting fairly quick I'm going to hold control scroll up a bit and then if I go to the tab or the view to the right back to the left page I'm going to go landscape page layout landscape I'm going to get rid of column A again I have it so it doesn't extend unmerge and then unmerge I got to do them one at a time unmerge those three I'm going to take these and pull them into column B so I can put my cursor on column A right-click and delete it so we have that pretty good I don't need the name column again so I'll put my cursor on column D right-click and delete it and then that looks good I can make this column a little bit smaller possibly I could wrap the text if I needed to wrapping the text and then I like to make all the text go on the top to the bottom so I'm going to say alignment put it on the top and so there is that I'm going to hold control scroll up a bit and then let's make this I can make this a little bit wider until it fits on one page exactly so we can do that and then maybe these underlines instead of having it this way I'm just going to format it the same that I did before I want to have them be these kind of underlines maybe I don't need the total down here select these three and delete that and then maybe I select the whole thing and put grid lines around it possibly and then maybe I'm going to expand this to the middle again by right-clicking format the cells I'm going to go into the alignment and center across the selection this one too I'm going to right-click format the cells and center across the selection hold on I missed the button you have to hit the OK button if you want to complete the process one more time we're going to select this item center across the selection and then maybe select these and make them black and white has been our custom so there we have that so then we have the reversing entry for the interest so I reversed this so that we can make here's the adjusting entry here's the reversing entry so that we can allow the accounting department to follow the amortization schedule this had an adjusting entry for the invoice that was entered in the following month but for which the work was done in the current month we have to reverse it so that we can get the financial statements correct as of the cutoff date and then reverse it the period after so it's not in there twice as of the date the actual invoice was entered notice on this one in particular it's easiest to just keep the same accounts from top to bottom and just change the debits and credits even though it looks kind of odd in terms of debits not being on top I think that's the easiest way to do it though and then going down to the next one we had prepaid insurance this is a permanent difference no adjusting, no reversing entry permanent differences no adjusting entry we've got the issue with that deposit which had a negative which had a negative accounts receivable which we saw works quite well from the bookkeeping side of things but it's not exactly right for external reporting so we broke out the liability versus the receivable and then we reversed it so that the bookkeeping side can do what they do and we would explain possibly to the client anytime we hit the accounts receivable here and up top that we have a have a sub ledger customer account of ZZZ that we set up so we're not messing up their sub ledgers hopefully but they might notice that ZZZ customer that we set up we might want to let them know that and then of course we had the breakout of the short term and long term portion of the loans necessary for external reporting but not great for internal tracking and normal payment processing of the loans therefore we reversed it right after so I'm going to save this we could then export this if we so choose to give it to a client possibly printing it to printing the entire worksheet I'm going to print it using the Qt PDF printer so it'll look something like this as long as it fits one page wide I don't care how many pages long is my personal way of thinking about it and then I'm going to use the Qt PDF printer to put it here there it is I'm going to put it into the reports adjusting entries and save it so if I open it up then we have our reports that we can provide to a client say hey look these are the adjusting entries that we put in place and we can format it however we want to format it I'm not saying this is the best format it whatever you want to do but you can give it some nice customized formatting and whatnot by exporting it to excel in a similar fashion as we have seen with other reports so that's that's the general idea that's the bottom line with regards to the reports once again this is where we stand at this point in time in terms of the trial balance so you can check your numbers and then you can take a look at those reports if there are any differences or discrepancies and to see if you can drill down on those differences and possibly make changes and figure out where any of those differences might lie