and now we will learn how to record paying for expenses and buying things
it's so simple first use the register of the account that the money came from second record all
relevant information and third check the results in the trial balance for example June 4th paid
Verizon 250 from the M&T bank account with check number 1 let's take a look at how we would record
this we open the M&T bank register we put the date as June 4th the check number is 1 and QuickBooks
suggests check number 1 now whom did we pay we paid Verizon so we click the payee list and go
down to the vendor section and we find Verizon or at least was supposed to fall here it is Verizon
good now why did we pay Verizon the account that we choose see when you click account you get a
list of all the accounts in the chart of accounts but the account we choose reflects the reason why
we paid in this case we paid telephone expense now it is a payment and you have to be very careful if
you're decreasing this bank account to put it in the payment column and the amount is two hundred
and fifty dollars so I type in 250 and I push tab then when I record it notice the balance of the MT
bank account goes down to 550 when we look at the results in the trial balance you can see M&T bank
has decreased to 550 and telephone expense showed up for the first time on the trial balance as two
hundred and fifty dollars let's record the next transaction June 5th paid AT&T 150 dollars from
the chase bank account and since this is the first check from the Chase Bank account it'll be check
number one let's take a look at how to record it we can close the other windows and open the Chase
Bank register the date was June 5th the check number was checked number one it's the first check
we're writing from the chase bank account and whom did we pay in this case we paid AT&T now why did
we pay AT&T well we paid them for our telephone expense and make sure the money amount goes in the
payment column not the deposit column because this is a decrease to Chase Bank when we click record
you'll notice that the Chase Bank balance has decreased to 350 when we open the main report the
trial balance you can see that telephone expense is now up to four hundred and we can double click
that total telephone expense and see the reason it's four hundred was because we paid Verizon 250
for telephone service from the M&T bank account and we paid AT&T on June 5th from the chase bank
account 150 and that explains why total telephone expense so far is four hundred dollars let's try
one more June 6th paid $50 cash to dr. Kirk for dog medicine and he gave you receipt number five
five six six seven well if we paid him cash that means that the money came from your wallet click
here to open the register the date was June 6 the receipt number was five five six six seven the
payee was our good friend dr. Kirk and the reason we paid him was that Bill's vet bills make sure
you put the money in the payment column because this decreases the cash you have I believe it
was $50 so when we click record you should have a hundred and fifty dollars in your wallet or
in the cash on hand when we look at the results in the trial balance you can see that vet bills
shows up for the first time as $50.00 and you can see the cash on hand in your wallet has decreased
from 200 to 150 now there's one more thing I want to mention the profit and loss report will now be
clear let's close out the other two windows and from the icon bar click profit and loss now we can
see the difference between the money that came in and the money that went out right now we only have
fifteen hundred dollars and it's specifically for bartending income we have telephone expense and
vet bills equaling four hundred fifty dollars so the difference between the money that came
in since we started recording in June and the money that went out is $1,050 and this $1,050
is distributed across the different bank accounts such as Chase Bank M&T and cash on hand wallet you
may also notice some other similarities between the profit and loss and the trial balance first
you can notice the we can set a from date and a to date and limit what shows up as a result in
the profit and loss for example even though we had transactions from June 1 until June 6 we can tell
QuickBooks show us the results of transactions between June 2nd and June 5th after we click
refresh notice the numbers change because it only includes transactions between those days
we can fix this by clicking the pull down arrow in the top left scroll all the way up and again
and ask QuickBooks to show us the results of all transactions regardless of a date also just like
the trial balance you can double click one of the summary numbers and a detail will open up
for example this is the same telephone expense we saw a moment ago in the trial balance you
can double click and you can see that we open telephone expense we can see every check that
we made for telephone expense and the running balance and the date now some of you might have
made a mistake while you were following along and putting in the information don't worry you can
change anything that you saved at any time and at the moment you save the changes the results
in the reports will fix themselves immediately for example let's open the M&T bank register
and let's open the trial balance notice right now cash and Chase Bank is 350 and bartending
income is only 1500 but if we went back to the MT the MT of register and we changed for example
let's click and let's change this field now to change something that you saved all you have to
do is click back into the field that you saved it over type it with the new information for example
I put a million instead of a thousand ok then when I click record the only thing that will
happen is that QuickBooks will tell you you have changed the transaction do you want to record the
changes if you click yes you can look at the trial balance and now notice bartending income is now
well over a million dollars and the balance of M&T bank is almost a million dollars don't worry you
could always change it back when you come back you can change any part of the transaction that
you already recorded you can click here and make it a different income account you can click here
and make it a different person involved in the transaction you can even change the date but look
what happens as soon as you change it back to what it was supposed to be again when you try to save
it you'll get a warning that you change something do you want to record the changes when you click
yes all the numbers go back to exactly what they were so don't worry about making a mistake just
go back to the place that you made the mistake and type over with exactly what it was supposed to be