and now it's time to record our first transaction the first type of transaction we will learn how to
record is depositing income however before we record any transactions we should open up and
save the report called the trial balance the trial balance is your main financial summary the trial
balance the accumulated results of each account in the chart of accounts so the chart of accounts
shows the name and the type of the account but the report called the trial balance will show
the name of any account that we actually used for transactions and next to the name it'll show the
balance of the account which is the accumulated results of all the transactions in that account we
will open up the trial balance by clicking on the top right of the main menu reports accountant and
taxes trial balance right now the trial balance shows nothing because we have not yet recorded
any transactions I'm recording this video in June of 2016 that's the reason why the trial balance
opened with the date range main one - May 31 of 2016 because by default the trial balance opens
up with the date range selected as last month we need to fix this click on the arrow next to the
word last month and get all of the different date range choices go down to the bottom and
click and drag and scroll up and choose the very top choice all what we're doing here is we're
asking QuickBooks to show us the results of all transactions regardless of date now that the trial
balance looks the way we need it to look we will then save it to the icon bar click view at trial
balance to the icon bar and then click ok now we have a shortcut to the trial balance right here in
the icon bar the first time you close the trial balance you will get this message do you want
QuickBooks to memorize this report well we will click no because we don't need that we already
memorized it by putting it in the icon bar however this annoying message is going to keep popping up
until we click this box don't tell them you know don't display this message in the future now click
no and we don't have to worry about that message popping up we're not using the chart of accounts
so we can close that too now when we click our shortcut to the trial balance it opens up and it
looks exactly the way we need it to look now here are the first three deposits of income that we're
going to make on July 1 we deposited 2000 dollars of income into Chase Bank and the transaction
number was 8 472 well how do we record that well it's pretty easy first of all the transaction said
it was Chase Bank so you click the Chase Bank icon and the Chase Bank register opens up the date was
July 1 and again I happen to be recording this video on June 26 so after I click the date box
I have to click the forward arrow and click on the number 1 and QuickBooks will type in to the
date field for me July 1 of 2016 the transaction number is 8 for 72 so when I click in the number
field I hit the back arrow to remove the number that QuickBooks suggested and type in 8 for 7 to
now we can leave the payee blank because this is income and it does not require a name associated
with the transaction however if the money's coming in and it's income that we earned we click this
arrow and we go to the only income account in our chart of accounts and choose income deposits so we
have the when the what we don't need who in this case and we have the reason why we're depositing
the money the reason why is reflected in the account of the chart of accounts we choose income
because the reason we got this money is income we must be very careful not to put the money in the
payment column if you accidentally save the money amount in the wrong column it will be a problem to
fix it's fixable but it will take a lot of time instead be very careful and click only under the
word deposit and type in the money amount now you do not have to put a comma or a decimal point or
a dollar sign just put the money amount in the row of the transaction under the word deposit
after you type the money amount you click the word record congratulations the register shows
we have a two thousand dollar balance in our chase bank account and we also have two thousand dollars
in income we can close out the register and open our good friend the trial balance and you can see
Chase Bank now has a balance of two thousand and the account called income deposits has a
balance of two thousand stay with the video and stay with the story and after we record
the next two transactions you will understand the purpose of the trial balance the next transaction
is June to deposited a thousand dollars of income into the TNM Bank with slip number two four eight
seven or seven eight okay well it says the next transaction is in the TM account so all we have
to do is open the TNM register put the date by clicking the calendar box click on number two
for June to make sure we copy the right number in to four seven eight in the number field go back
to four seven eight now because it's income we don't have to choose a payee and the reason for
the income is income deposits this is what we earned from our service or product that we sell
to the customer remember it's still income so be very careful to leave the payment column blank
and type the money amount in the deposit column push tab to save the field and congratulations
you now recorded your first income deposit into TNM Bank and the register shows a thousand but
the most interesting thing is behind the register let's close it out the trial balance shows that
you made a two thousand upon dollar deposit into Chase Bank you made a $1,000 deposit into TNM Bank
but your total income that you earn from your business is three thousand dollars and that's
the purpose of the trial balance let's do one more for Goodman on June 3rd we deposited another
five hundred dollars of income into the chase bank account with slip number nine nine eight
eight can you predict what the numbers will be in the trial balance after we record this well
Chase Bank will increase by five hundred and go up to two thousand five hundred and the overall
total income will increase by five hundred and go up to three thousand five hundred we open the
Chase Bank register put the date as June 3rd put the transaction number as nine nine eight eight
again because this is income we don't need a payee but the account that represents the reason why we
got the income is income deposits and again be very careful to put it into the deposit column
five hundred dollars and at the moment you push the tab key on the left of your keyboard you will
have recorded the transaction and you see the new balance if we close the register and look at
the trial balance the numbers are exactly what we expected Chase Bank went up to twenty five hundred
and income deposits went up to three thousand five hundred and one final note you can change
any transaction anytime you want to anything you want the results in the reports including
the trial balance will change immediately for example if I went to the TNM register
and I change the money amount of this deposit or I wanted to let's say I could click right in the
field of the transaction that I want to change and make it anything I want for example I want to make
this five million dollars okay as soon as I push the tab key on the left of the keyboard which is
the same as clicking the record button I get a warning message are you sure you want to make
this change if you click yes notice everything becomes huge I now have five million dollars
in my TNM bank when I close the register look at the trial balance I have five million dollars in
TNM Bank and my income deposits went up to five million two thousand five hundred dollars don't
worry you could always change it back to what it was as many times as you want let's go ahead and
fix it click the TNM register click in the field of the item that you want to change over type what
the wrong number is in favor of the right one and then click record remember you're going to get a
warning message so just click yes now notice all the numbers in the trial balance are back to where
they should be you don't only have to change the money amount you can change any information in any
field of the transaction and when you click record the results will correct themselves immediately