Reference no: EM131537247

Question: Accounting software packages can quickly print out volumes of journals, reports, and financial statements. The old adage "garbage in, garbage out" is especially pertinent when using an automated accounting system. The journals, reports, and financial statements are only as good as the data entered into the system. Most accounting software programs have a variety of safeguards, or controls, to help limit the number and kinds of errors that can be entered. For example, QuickBooks will not allow a journal transaction to be saved if the debits do not equal the credits. Instead, an error message will be displayed, and a correction must be made. Other controls may include requiring a customer name whenever accounts receivable is used in a transaction or using dropdown lists to avoid typing errors. However, no software program can eliminate all entry errors. Dropdown boxes don't prevent the user from selecting the wrong account. Making sure debits and credits are equal doesn't help if both amounts are incorrect. Therefore, journals, reports, and financial statements must be reviewed carefully to determine accuracy.

QUICKBOOKS MASTERY PROBLEM 11-6

1. Open the Auto Restoration Inc. file.

2. Print a Customer Balance Summary report, a Vendor Balance report, and a Trial Balance report using October 1 and October 31 for the From and To dates

QUICKBOOKS CHALLENGE PROBLEM 11-7

1. Open the Custom Golf Land file.

2. Journalize the transactions completed during October. Use the Receive Payments and Create Invoices features for cash receipts and sales on account.

3. Use Enter Bills and Pay Bills for purchases and payments on account. Manually enter the amount of the purchase discount for the October 20 transaction.

4. Use the Write Checks feature on all other cash payments.

5. Use the Enter Sales Receipts option to record cash and credit card sales. Use the Make General Journal Entries window for all other transactions.

6. Use 8% sales tax rate for all sales transactions.

7. Print a Journal report, a Customer Balance Summary report, a Vendor Balance Summary report, and a Trial Balance report.