Directions: Respond to the Financial Accounting journal entry by explaining how this entry would be entered into Quickbooks Online (QBO). Assume that the company is a sole proprietorship that already has a bank account set up. Assume that all required accounts are set up in this company. Use the same date for all transactions.

The first journal entry is completed as an example. I added three steps just to show the format. You must use as many lines as necessary to explain the QBO process. You should extend the areas in blue.

JE1: Cash $50,000

Capital $50,000

QBO1: First, you deposit the money into a checking account (to record the cash invested) and consequently keep track of how much was invested per double-entry accounting with an equity account you create. This is done by the following:

1) Plus sign icon >Bank Deposit

2) In Deposit, choose the bank account to which you are depositing the money (to access later).

3) Enter the date you deposited the money

4) Go to New Deposit Table on the same page and enter the person from whom you received (Received From) the money (yourself or your partner[s]). If it is not listed, create a vendor account via the NEW

5) In Account, choose or create the equity account and/or sub-account.

6) Select a payment method from the drop/down list Cash

7) Enter the amount invested in the amount column.

8) Select Save and Close

JE2: Sold Automobile for $10,000 cash.

QBO2: You.

JE3: Completed 100 tax returns at $50/return, Received check.

QBO3: You.

JE4: Completed 50 tax returns at $50/return on account

QBO4: You.

JE5: Withdrawal of $500 for personal use.

QBO5: You.

JE6: Pay Cash for Utilities of $ 650

QBO6: You.

JE7: Pay Cash $ 500 for Notes Payable and interest of $50

QBO7: You.