 QuickBooks Online 2022. Purchase of furniture and investment transactions. Get ready because it's go time with QuickBooks Online 2022. Here we are in our Get Great Guitars practice file that we set up with our 30-day free trial holding control, scrolling up just a bit to get to that one to five percent. We're currently in the home page otherwise knowing as they get things done page and the business view as opposed to the accounting view. If you wanted to change to the accounting view it is something that you can do by going to the cog up top and scrolling down to the accounting view. We will be toggling back and forth either here or by jumping on over to the sample company file which is in the accounting view to look at where the different items would be located in the two views. So now we're going to be going and let's open a couple tabs up top right clicking on the tab up top. Duplicate in the tab we're going to do it again go into the tab first tab right clicking on it duplicating it again to put our reports in place as those are thinking jumping back on over to the sample company just so we can look at where the reports are here in the accounting view on the left hand side. If I go back on over to the business view in our current company file second tab which is open it's in the business overview section and we're in the reports and we want to check out the balance sheet the balance sheet I'm going to close the hamburger and then scroll up top and do the range change from 0101212 1231 actually 2222 we're in 22 this time 01012201 let's do 123122 and then run it so there we have it let's go to the tab to the right this time I'm going to go back to the business overview where the reports are located but this time not opening the profit and loss instead the trial balance which I'm going to type in up top to do trial balance we're not doing the profit and loss because there's going to be no impact on the income statement thus far closing up the hamburger range changing it up top from 010122 to 123122 running that one okay let's go back to the balance sheet we're imagining we're starting out our new company file we got money we needed capital and we put capital in the business with some transactions often you will find when starting a new business or expanding money coming from the owner or if it was a corporation from the owners in terms of selling stock and or taking out alone we entered those two transactions non normal transactions transactions that don't happen all the time or every day but are there oftentimes when a new company is started out therefore there's no actual form really designed specifically for those types of transactions given the fact that these forms are designed for the day to day transactions typically but cash was impacted and therefore we show we we used you know basically a deposit form for those first items scroll down just a bit to get out of here and then scroll close up the hamburger scroll up a bit again so now we're going to take that money and we're going to invest it so the typical investments we would be putting it in would be the investment of inventory depending on the type of industry we are in or long-term assets such as buildings equipment and machinery and so on that we're going to use to then generate money in the future and then we're going to take some of that money expecting that we're going to put it into some investment shortly but wanting to hold on to it for now somewhere other than cash where we might get a return on it and so we're going to put some of that into like stocks and bonds and investment type of account now remember if you're thinking about a business company just want to be clear that if you're not thinking about a financial investment company meaning a company designed to make revenue off of investments such as interest dividends capital gains then a business like this where you're basically any other non-financial business where you're making money by selling guitars in this case or doing guitar lessons and so on that means that you don't typically want your investments in here generally in the stocks and bonds you would want them those types investments on the personal side of things right that would be a personal that would be outside of your business account it would generally be in your personal account you would think for the stocks and bonds the money in here is here specifically so that you can use that money for the business in this case purchasing and selling guitars and so the only time we would have it in basically an investment account in other words if we had excess cash that we weren't using to put back in the business or planning to use to put back in the business soon we would give it to the owner generally and this is the general concept of any business structure whether it be a sole proprietorship or a partnership or a sole proprietor or a corporation you would you would say well if there's excess cash and it's not being used or planned to be used to reinvest to generate revenue you should give it to the owner in the in the way of dividends or in this case it draws so the owner can take that money and make money on it with with their own investments or invested some other place however if you do plan on using it in the business then it might be appropriate to put it into like a holding account to basically hold on to it and make a little bit of revenue while you're holding on to it before you spend the money so that's the first thing that we will do as we do this you also want to kind of keep in mind you can use QuickBooks for the personal accounts as well and so we have some courses on that if you want to look on to that in more detail you can use one QuickBooks file to actually track your business and personal by using classes I won't get into that right now but you can take a look at that and in that instance you would possibly be recording transactions related to your investments more likely on it and so in that sense then you want to think about what should QuickBooks do versus what should other accounting software do remember that QuickBooks is not here generally to to track the day to day transactions of an investment account it's there to give you where you stand as of a pertinent time so you so usually if you're investing you might want to invest basically or put your accounts in here possibly by the investment company like your bank that you're investing in or each rate or something like that and then have the each rate account give you more detail you might break out short-term and long-term investments for example or investments that are under the umbrella of a retirement plan such as an IRA or such as a 401k plan as kind of long term that you can't really access and then short-term possibly all your other types of investments but you don't want too much detail on the QuickBooks side of things typically because you want the detail the day to day transactions on basically your investment accounts or in other software that would track that kind of more detailed day to day trends stuff okay so that said our first one's going to be putting money into like an investment account which we're going to assume is something like stocks and bonds because we're going to take some of that money and put it into some stocks and bonds and we're going to purchase equipment so let's do the same kind of thing we're going to go into the plus button and say is there a form related to the purchase of investments there's not one specifically designed for it because it's not something that we do on a day to day transaction basis for a non-financial company is cash affected it is so we could use possibly an expense form or a check form now if we're using an expense or check form oftentimes I would do that once again with the register because I think that would be a little bit easier to enter the transactions typically so I'm going to do that with the register by going to the bookkeeping item down below if you were in the other view the accounting view it would be in the accounting area and then I'm going to go to the chart of accounts close up the hamburger and just go right into our register for the bank account and then I'm going to hit the drop down going to hit the drop down up top and we're going to choose the type of form as an expense form note that the expense form and the deposit form are in essence the same kind of form except the check form I'm sorry the check form and the expense form are in essence the same type of form except that the check form will typically be requiring a check to enter the expense form would be something if it was like an online transaction where you don't have a reference number to reference here and that's kind of nice because the check form when you use it will populate the check number automatically the next check number in line which is a good internal control alright so this is going to be as of 0101 let's say 220104 22 let's say so 0104 22 and this is going to be vanguard we're going to imagine van is the investment company that we're going to put this into van guard is that how you spell it let's say let's let's just assume that and we're going to say that it's going to be a vendor although it's not really a vendor it's kind of like a bank so those vendor or customers don't quite work out in terms of the term that we're going to say this is an investment or investment and it's going to be a payment we're going to say of $12,000 of that money we got we're going to put into this investment for a short period now it's not going to be an expense the other side is not going to be expense here but rather a decrease to the checking account of course decrease to the checking account and the other side is going to go into our investment account so I don't think we have an investment account here notice the expenses are the things that pop up first because most of the time when there's an outflow it's going to be an expense that it's going to go to I'm looking for the asset accounts on down below we've got inventory loan payment uncategorized accumulated so we don't have any short term investment account set up so I'm going to make a new one which you could do by going up top and adding one here a lot of times I'll just type in down here short term say investment account and then tab and it'll go into the adding of the account feature here and notice even in the business view it's given me like the normal account settings to give me all the detail I need to add the account which is nice so I was a little worried because when I go into the GL it gives me some restricted stuff sometimes it seems like so in any case this is going to be a an other current asset account other current asset we're going to call it and allowance for bad debt we're going to say inventory investment so investment other let's say short term investment will be the description now if you have multiple kind of areas that you have short term investment in you could break it out between the types of investment but you wouldn't most likely want to break it out by individual investment like I investment in this this series of stocks and that stock and this stock because that detailed information you probably want somewhere else you might want to put it in place however by Vanguard investments the person you're investing in or the financial institution which you could put in under the subcategory then using subcategories of short term investments for example or you might categorize in general these are you know bonds versus stocks for example which could be a little bit more difficult to break out because they might be on the same financial statements but you can you could try to do it like that without getting to detail down it is the point and then we're going to save it and close it so I'm going to save it and close it here and say let's do it let's save it and let's close it and then let's check it out let's go to the balance sheet and see what happened let's see what happened do it and see what happens run it check an account let's go into it drill and down on the cash and there is our expense form so if I go into it it's not going to take me to the register but to an expense type of form looking like this so there's the vent the payee at top they got the the category on down below looks good closing it back on out scrolling back up top the other side went into an investment account so where is that what did that go short term here it is short term investment 12,000 going into it there is our expense form that was used to create it next we're going to we're going to say we're going to take some of our our capital here and and put it into some long-term investments investing in some furniture and equipment so let's go to the first tab this is another one that if I hit the the hamburger and then go into the plus button there's no transaction that's really designed for the purchase of furniture and equipment specifically we could use like an expense form and a check form and in essence those of the forms we will use but furniture and equipment's a long term kind of transaction so we don't usually do it like all the time as opposed to short term like paying the utility bill so in this case if we're paying cash it would be an expense form or a check form but the other thing you might do with these big purchases is purchase them and finance them which again there's not a normal kind of transaction for the financing of long-term equipment because it's not something that happens all the time but this one we're going to pay for cash with it here we will finance a purchase in a future presentation in the following month to see that kind of process as well I'm not going to use a check or an expense form here however because I think it's easier once again to use the register so I'm going to close this back out we're going to go back into the register close up the hamburger and if I hit the drop down I'm going to choose the expense form again as opposed to the check form so that we don't have a check number actually let's let's put a check number in there let's use a check form and this one I'll say happened on the 9th on the 9th that's the 8th the 9th notice I'm hitting the plus button you can't see it but I'm hitting the plus button to plus up to the 9th and that's a little bit faster to do oftentimes the check number now populating automatically here so I might want to like populate it this way like 1001 imagining let's let's I'm going to imagine we're starting at 1002 that's the number on our check book I'm imagining here and then the payee is going to be the payee is going to let's say it's office office depot office depot that we're purchasing from I'm going to add that by hitting tab it's going to be a vendor this is a legitimate vendor this time because we're purchasing from office depot and the memo is going to be purchase purchase furniture furniture now you might want more detail in the memo so exactly what you purchased and referencing it because if it's a large purchase this is something you're going to have to give to your tax professional to add it to your depreciation schedule so any large purchase that you put in on the books as an asset you want to make sure that you're keeping the information for it and say you know saving the detail related to it so that you can provide that to the tax professional this is going to be for we're going to say 18,000 the other side is going to go into our asset account once again it's not an expense it's looking at the expenses first because that's usually the things that we're going to be using but we're going to look for the asset account which is a fixed asset type of account and there it is if you know what it is you can also type in furniture and it'll start to populate so we want furniture and equipment this account here and so I'll pick that up and then I'm going to say save it and save it so we'll save it there let's go back to our balance sheet and scroll up and run the report to freshen it up and if I go into the checking account my voice is going don't go boys don't go there's the 18,000 if I go into it it goes into an actual check type of form looks like the expense type of form except it has a check up top and a check number on it closing that backup we're going to go back up and then say let's look at the other side which is going into the equipment account down here furniture and equipment going into that one and there is our check there as well looks good looks like everything has been populated the way it's supposed to everything is going according to the plan let's go back to the first tab let's do it one more time that was good times let's do it again let's say we're purchasing another one this time from amazon furniture and equipment same transaction we're going to say this is as of the 11th and then the check number we'll keep the check number we'll say it's a check form and this is going to we're going to purchase from amazon now also note that you might be purchasing things from like a something like an amazon which is an online retailer or from like a home depot or depot shop and that you might have some things that are going to be equipment and some things that are going to be just expenses like supplies and so and you might be doing this with bank feeds we'll talk about bank feeds later in another section but just realize you might want to set like a dollar limit and try to say well if it's over this dollar limit it's likely that i should be capitalizing it put it on the books as an asset depreciating it over its useful life because the tax code if nothing else will require me to do that as opposed to expensing it so that and and when we get to the bank rules we'll see that you can actually apply a different bank rule and to kind of try to automate that process but you want to keep that in mind if i'm purchasing something that's large bigger dollar amount do i need to capitalize it and if so we put it on the books as an asset and then i want to keep the receipt and so on to give it to my tax professionals so that they can put it in the depreciation schedules so i'm going to say purchase purchase equipment or fixed asset you might want more detail on what exactly you purchased you know and break out that detail because again you're going to need it for the depreciation schedules seven thousand here we're going to say and we're going to say that the other side is going to once again go into furniture and equipment furniture and equipment and then i'm going to scroll down a bit so i can see it and then record record it something you're trying to use has been inactive hold on a second did i pick up the wrong account furniture and equipment and then save it okay i think it's working now i think i got it to work so there it is so let's go back to the balance sheet again back to the balance sheet let's make it let's make it fresh running it holding control scrolling up just a bit let's drill down on to checking account again drilling down on the checking account we're going to see that check there it is there's that check if i click on it we go into the check this time looks like an expense form but now it has a check number and so i'm going to close it now note that if i wanted to print the checks like actually manually print them i can say i can say that i want to print them later and then put the checks actually into the into the printer because there will be a pre-made checks that we're going to have to use the printer to print out on so note you can keep that in mind as well as you're actually printing the checks from the system going back the other side into the checking account my voice is really trying to don't go boys i need you i need you so there it is there's the seven thousand there let's go back on up top and go back then to the summary and let's check it out on the trial balance let's go to the trustee trial balance which is a nice condensed format run it hold down control scroll up just a bit so there's what we have thus far on the trial balance now before we finish up here i'm going to make actually an adjustment to one of the transactions and note that as you make these adjustments you need to be careful about about making them quick books allows you to kind of go back in and make adjustments back into the data but if you want to be careful not to do it in prior periods and even in the current periods oftentimes would be better not to adjust an error but rather to enter a transaction to kind of correct it but i'm going to go back in and say okay what if i had a transaction wrong could i change it at this point in time and if you were reviewing your transactions you could do it thusly you could say okay this account let's pretend this account was different on my books then your books if i drilled down on it back to the source document and let's say i'm going to say okay this 18,000 right there it should be 16,000 let's say it should be 16,000 i miss ink i miskeed the 18 and the 16 could i change that well i can quick books will generally let me i'll i'll drill down on it and that will take me then to the source document and then i'm going to change it in basically the source document here so i'm going to say okay this should be 16,000 so you need to be careful with those kind of adjustments but just note that it's possible of course then to do that when you're working through the practice problem it could be a useful tool to do so i'm going to then save it and close it save it and close it i'm going to go back then to our summary on the trial balance i'm going to refresh it making sure i got the new updated number here at the 105 and that's what we have thus far so if you're following along this is where we're going to be going forward we got the cash to 105 counts receivable 20,005 the inventory 2008 96 the short-term investments at the 12,007,005 on the accumulated depreciation 98,000 furniture and equipment 15,000 on the accounts payable credit card 1,000 loan payable 72,000 the owner's investment at the 65,000 and the equity at the 77896