 QuickBooks Online 2022. Interpayroll for second month adjustment. Get ready because it's go time with QuickBooks Online 2022. Here we are in our Get Great Guitars practice file we set up with a 30-day free trial. Holding down control, scrolling up a bit to get to the 125% currently in the home page, otherwise known as the Get Things Done page. If you wanted to change to the Accounting View, it's something you can do by going to the cog up top, switch to the Accounting View down below. We will be toggling back and forth between the two views, either here or by jumping over to the sample company file currently in the Accounting View. Going back to our sample company, we're going to open a few tabs. We can put reports in by right clicking on the tab up top, duplicating that tab back to the tab to the left, right clicking on it, duplicating again back to the tab to the left, doing it one more time, right clicking on it, duplicating it. As that is thinking, we're going to locate where the reports are located in the Accounting View, which simply is in the Accounting Line item on the left-hand side. If we go back on over to the Business View, it's a bit deeper down, but not too bad. It's in the Business Overviews section. And then in the Reports, and then we can close up the hamburger currently on the second tab by the way, we'll be opening up our favorite report. There is no surprise that we'll be introducing the balance shape. And then we're going to go up top and do a range change from 01012223122, run it and tap to the right. And then we're going to go to the Business Overview again, Reports again. And we also no surprise are going to be looking at and presenting the income statement, the profit, and large P and L 010122 to 022822, bit of a change there. We're going to be then taking a look at the months so we can see the side by side for the two months of data input, thus far running that report. There we got Jan Feb and Tote, the Jan Feb and Tote totals down below. Tap to the right one more time, Business Overview, closing the hamburger, and then we're going to be typing in this time for the trial balance, because that's the third one we want easiest to find by typing in, and the trial balance happens to be the name. So if you type that, then it's able to find it because it looks by the name 010122 to 012122, run in that one, and there we have it. Let's go back to the first tab. In prior presentations, we've ran the payroll by going to the payroll down here and processing the payroll. You got to have payroll on to run it, but in the free 30-day trial they gave us access to the payroll, so we ran that. However, and this is just for the purposes of our practice problem, when we entered the data in the system for our bank statement we had a slightly different or miscalculation, I'll have to admit, of a number and we want to basically adjust our data input so it matches the bank statement so we can tie it into our practice problem and do it for our bank reconciliation and match it up to some other stuff we want to do in the future. So this is a purely practice problem adjustment. I apologize for it. You don't want to do it this way in practice. If there's a problem in payroll what you would want to do is void the checks most likely completely and then process the payroll again because the accounting system of processing the payroll is the internal control check that you have against making an error. You don't want to go to the check after it's been processed and then adjust it because then you're going to mess up the connection between the reports and the checks that have been issued. But for the purposes of the practice problem here's the adjustment we're going to make. This is the information I believe that we input into the system. So this is what the current check is at. This is where the error is on Adam Hamilton. So if I go for example into Mr. Hamilton's check let's do it by going into the check register, going down to bookkeeping area down below which if you were in the accounting view would be in the accounting area and then we'll go up to the chart of the accounts and then close the hamburger and we're going to go into this checking account. We're going to go into that viewing the register right there. Right there. And then here's Hamilton's check. So let's go into Hamilton's check right here and hit the edit button so we can see the stuff that happened in it on how that was calculated. So there we have it. So there's the check and we can see that we have the salary and this stuff was taken out of it to get to this check amount of the 353271. So we can recreate that. Here's the 353271 gross wages minus the FIT and the social security of the Medicare. Now this is the proper calculation. The FIT we plugged in, we just manually put in 700 but it's usually calculated by the system. Social security at this point is usually a more of a flat tax which is going to be then calculated as the gross wages times 0.062 or 6.2%. Medicare calculated 0.0145 or 1.45% and there's the net check. Now this is what we have that was in our bank statement or our worksheets before we entered it that we want to tie into. The FIT of 720 and this is where the and that was one error we made on the data input. The other one is this got these numbers mixed up. So the 84 and the 4 8. So this is what we have on our bank statement. So I'd like to adjust it to that. So the difference that we have is going to be this in terms of the change for the FIT and the social security and then the net check as well as the employer side of things social security. Okay so that probably looks a little bit complicated. We're going to do this one step at a time though. We're going to say this first change to 700 I'm actually going to see if I can change that in the actual check because we should be able to put that in the check. So I'm going to go back on over here and let's say that I wanted to edit this thing. Say I want to edit this check. They let me edit it before. Oh I see it's down here now. Edit the check. We're going to go down to the edit of it. This is not something you would typically want to do in practice. You would typically want to void the check and then process it again typically in practice. But for the practice problem, see how they let me adjust this federal income tax one. I'm going to see if they let me adjust it after it has been processed here. Again don't do this in practice. You avoid the check and run it again and let the system calculate. Okay so then these two I cannot change because they won't let me change it and they're doing an automatic calculation here for that second item. So for that one I'm going to do an adjusting entry. So I'm going to say save it. I'm going to say okay. Let's do that. And so now I've got the 720. So now I'm at the 351271. So that's a step closer. So this one has been changed to 720. So that's correct now. I'm going to say there we go on that. So now we're at the 351271 and there's the 351271. And then I made this little kind of dyslexic number swap over here when I was doing my worksheets. And this is tying into my bank statement. So I want to make this number tie into this number even though it's an error on our end. And I can't do that by adjusting the check. So what we're going to do is do another journal entry to make that adjustment. We'll issue another check. So this is kind of a two step process because there's an employee portion and an employer portion. So let's go back on over. And this is what we'll do. This is how we'll fix it. We're going to say the net check needs to go up by the 36. So we're going to do this in a two step process. We'll increase that amount. The other side's going to be going to the liability, payroll liability. And we're going to do this with the same kind of check number if we can. So I'm going to go down here. I'm going to go back into my bookkeeping and let's do this in the register. Going into the chart of the accounts. And I'm going to go into closing the hamburger, that cash register again. And I'm just going to make another check. I'm going to select the drop down and say let's do a check. And this is going to be as of 022822. I'm going to use the same check number as Adam so I can see that these are kind of connected together. It's going to be for Adam Hamilton, our employee although it's not a payroll. And I'm going to say this is going to adjust payroll check for practice problem practice problem reasons or purposes. And the adjustment here is going to be in the amount of the $36. I'm going to say $36. And the other side is going to be going to the payroll liability account which is going to be the federal taxes right there. So I'm going to say, okay, let's save that. And I'm going to use the same check number because I want to see that those two check numbers are kind of like the same check when I do my bank reconciliation. And if I open up my trustee calculator or pull out the trustee calculator here trustee calculator help me out trustee calc where are you? There it is there it is. Okay that's going to be the 36 plus the 3512.71 and that then ties out I believe to the 35 4870. So that looks good. Now I just need to do the same thing for the second side of it which is the employer taxes increasing the social security tax and the other side going to the liability also for the $36 because it's that matching component. So to do that let's do that with going into the register again. Let's go back to our chart of accounts and we can do this possibly most easily with the liability account payroll liability account let's go into that one it should be going up going into the payroll liability which is I'm in fixed assets current assets long term we want liabilities and I'm looking payroll liabilities here we go the federal taxes that's the one I want let's look at that register it needs to go up so I'm going to make a trustee journal entry a journal entry as of 022822 and this is going to be memoed to adjust payroll for practice problem practice problem because Bob made a stupid dyslexic okay we'll leave that last part out okay so then we're going to say this is going to be 36 so this is going to be a decrease here of $36 $36 and the liability the other side is going to go to payroll tax so the expense account the payroll tax expense account for the employer portion so there we have it so let's select that one and that should do it let's go ahead and save it and close it and then check it out and see if it does what we would expect to do on the balance sheet and income statement jumping over to the balance sheet I'm going to go back to the balance sheet here and let's refresh it making sure we're working with fresh stuff running it again to do so going into the checking account of the cash account holding control scrolling down we got two checks in here now that are going to represent that check number 1022 for the payroll so that we can see that when we do our bank reconciliation which should have the combination of those both two and the one check number as we have preset up the problem and then if we go down to and we'll see that later by the way in future presentations then we're going to go down to the liability for the federal taxes and we made two adjustments in here and so we're going to see that check and a journal entry adjustments we've got the check adjustment that we made for the 36 the journal entry adjustment for the 36 up top scrolling back up again back to the balance sheet let's go down over to the income statement where we also made an adjustment by running that report so it's fresh working with fresh stuff and then we're going to go down and say that we had the payroll taxes adjustment here and hold on a second that's going to be taxes paid so it's a similar sounding account but I'd rather have it up here under the taxes which is the sub account for the payroll expense so let me see if I can adjust I'm going to go into it and drill down on it here and drill down on this one and go back to that journal entry and see if I can put it to the payroll tax the tax account tax let's go this is going to be tax which is a sub account of the payroll so payroll tax so here's payroll expenses and then I think that's the one we want payroll expenses taxes so I'm going to say okay tab and then say save it and close it payroll expenses taxes let's go back then to our report and so now it should be included under the payroll expense and taxes if I go into that line item I'm going to check it out so going into it holding control down so there is the journal entry there okay let's go back up top now remember this is just an adjustment that we did for the purposes of the practice problem to tie into the preset amount that's been already set up when we were working the practice problem to tie it out to some things in the future including the bank reconciliation this is not the way that you would typically want to adjust something in practice because you would want to be dependent on or you will be to some degree dependent on in practice the calculation of payroll through the system so if there's any problems with it you don't want to go in and adjust it outside of the processing of the payroll through the system you want to avoid the check get the setup correct within your system run the payroll again so that everything will line up properly when you process everything otherwise what will happen is your financial statement reports won't tie out to the reports that are making the payroll the payroll reports and your quarterly taxes and so on might not tie out to what's on your financial statements and that wouldn't be good so in any case practice problem adjustment we're going to go to the trial balance here and let's go ahead and run this one this is where we stand at this time so if you're lining up to what we have here that's good going forward and if not try a date range change it's often a issue and we will take a look at a transaction detail report at the end of the section to diagnose any differences further