ACC-370 QuickBooks Assignment 2

STEP ONE: Enter transactions. Click the + New button at the upper left-hand corner of the screen. Choose Journal Entry under the Other column. The company purchased equipment that costs $12,000 by issuing a note payable to ABC Equipment. The note is a three-year 8% note, and the equipment will last for 5 years and have no salvage value. Enter the Journal Date of 10/1/2023 and notice that the journal entry number will auto-populate. Journalize this transaction by choosing Equipment under Account, entering 12,000 under Debits and ABC Equipment under Name on line 1. On line 2, choose Notes Payable under Account, enter 12,000 under Credits and ABC Equipment under Name. Click Save and Close.

STEP TWO: Enter adjustments. Calculate the adjusting entries needed as of 10/31/2023 related to the purchase of the equipment on 10/1/2023. (Hint: these will be depreciation expense for one month and interest expense for one month.) Navigate to the journal entries like you did when you entered the purchase of the equipment. Enter each of the needed journal entries. Under description, identify AJE for Adjusting Journal Entries. Click Save and Close.