QB Beginning Bank Reconcilation - 0688-02 ZZqbb

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                   TO:  Interested Ministries                                                                                          FROM: Jim Bramer, Retired CPA-Auditor
                                                                                                                                                            FILE:  0688-02/qbb

                    RE:  QB-Beginning Bank Reconciliation Issues                                                 Originated:  June 2003                                                   


          Below is a hypothetical Online Email thread (THRD) between  Jim@bcidot.org  and one of the these Ministry MFTeam members: PAT (Ministry Executive), LEE (Ministry Volunteer Treasurer), and FRAN (Ministry Computer Bookkeeper).   


From:  Fran -- 

     Jim, we are just beginning to use QuickBooks (QB)---- the Trial Balance from our old set of books as of 05-31-xx looks like the following.

 

Account

Debit

Credit

Classes

101 � Checking Account

525.00

102 � Daily Interest Bearing Savings

9,351.47

103 � Petty Cash

200.00

141 � See Excel for LB&E Details

137,854.60

143 � Accumulated Depreciation

5,488.90

144 � 1st of Yr Unpaid Debt

74,496.15

149 � Fixed Asset-LB&E-Offset

57,869.55

259 � Constrn Acct Clearing

2,611.82

301 � Project #1

2,500.00

10-Bal Fwd

301 � Project #1

812.11

50-Expenditures:52-Supplies & Exp

302 � Acq Land Project

4,000.00

00-Bal Fwd

302 � Acq Land Project

26,921.07

40-Receipts:41-Donations

302 � Acq Land Project

2,687.89

50-Expenditures:52-Supplies & Exp

302 � Acq Land Project

25,845.00

50-Expenditures:56-Prop Acquisition

341 � Missions Fund

1,000.00

10-Bal Fwd

341 � Missions Fund

45,879.60

40-Receipts:42-Mission Donations

341 � Missions Fund

7,780.00

40-Receipts:44-10% of GPF Donations

341 � Missions Fund

53,875.00

50-Expenditures:51-Missions Expend

380 � SetASide #1

2,000.00

10-Bal Fwd

371 � GPFund Loss 09-30-x0

1,025.87

10-Bal Fwd

372 � GPFund Gain 09-30-x1

1,980.50

10-Bal Fwd

401 � Contribution Income

77,800.00

420 � Less-10% to Missions Fund

7,780.00

490 � AllElse Receipts

4,578.80

501 � Salaries & Wages

42,000.00

504 � Payroll Expenses

1,500.00

506 � All Benefits

4,000.00

555 � Facility Debt Servicing

8,000.00

560 � Facility Costs

3,800.00

567 � Ministry Expenses

7,890.00

569 � Defrayment Receipts

1,575.89

575 � Communication Costs

2,625.34

580 � Other Supp & Expenses

5,874.85

590 � AllElse Costs

835.15

         Our Bank Reconciliation for the above Checking Account amount of  $525.00 looks like the following:

(1)

Bank Statement Balance at 05-20-xx

$1,000.00

Deposits in Transit

05-28-xx

$1,500.00

05-29-xx

$1,300.00

$2,800.00

Checks Outstanding

04-25-xx - Number 1986

$ 125.00

05-14-xx - Number 1025

$ 430.00

05-20-xx - Number 1027

$1,755.00

05-28-xx - Number 1028

$ 815.00

05-30-xx - Number 1030

$ 150.00

$3,275.00

Bank Balance per Books at 05-31-xx

$ 525.00

       Now my problem is getting this beginning Bank Reconciliation information efficiently into QBs as of the first day of the new fiscal year, or 06-01-xx.  I obviously need all of the ingredients so I am able to Bank Reconcile for the the following month of June xx via use of the "Reconcile" tool that QBs provides.
        Any ideas, or thoughts, Jim?

From:   Jim@bcidot.org  

    Yes, please notice that these are the same Trial Balance figures that I used when I set up the QB Hands On - Sample Self Help Process at  0079  so we will try to use virtually the same sample data and respond to your questions.

    After you input the Chart of Accounts, you can enter the details (eight) of the above Bank Rec (beginning with the Bank Balance of $1,000.00)  in the opening Journal Entry (rather than the $525.00 only, but the net effect, of course, is $525.00).  Of course, you would include the appropriate info, like check number, within the Journal Entry memo area. 

    Or you can be more precise by taking the following steps:

Deposits

     >>  Go to the "Banking" Tab and choose "Make Deposit" from the options.
     >>  Processing details for each deposit are:  Be sure you have the right Bank Acct and date:  Make no entries in the following columns:   "Received from" - "Chk No:, and "Print Meth.".  Under the "From Account" area, find "Opening Bal Equity."  Place the amount of the deposit under the "Amount" column; then click on "Save and New" and repeat this process until all deposits have been entered. Be sure and include the Bank Statement Balance of  $1,000.00 as a deposit.

Checks

     >>  Go to the "Banking" Tab and choose "Write Checks" from the options.
     >>  Working from the above bank reconciliation data you "write a check" for each of the outstanding checks. 
     >>  Processing details for each check include:  Input the proper check number; use the indicated date of the check; in the "Pay to the Order of", plse use "Add New" and add a generic vendor called "Opening Bal Only"; Go to the Memo part of the check and type in "Opening Bal Only; under the Expenses/Account, find "Opening Bal Equity"; then click on "Save and New" and repeat the process until all checks have been entered. 

Proof

     >>  Go to the "Lists" Tab and choose first the "Chart of Accts" and then click on your Bank. 
     >>  This takes you to the Bank Register and you will find the details of the above Bank Reconciliation report.  Your ending balance MUST be $525.00. Also be satisfied that all of the other deposit and checks info match.


 
From: Fran --

                    What about the other parts of the above Trial Balance?  

From: Jim

     >>  Now you go to the Banking tab and choose "Make Journal Entry."   The date is 06-01-xx and the "Entry No. is "1".  >>  Under "Account" you choose "Opening Bal Equity" and enter the $525.00 as a debit.  When this is posted, you no longer have a balance in the "Opening Bal Equity" account/register.
     >>  Under "Memo" you enter " Opening Bal per your initials and date".  Then highlight and go to the Edit Tab so you can copy for subsequent copying/pasting into this Memo area when you do the posting below.
     >>  You then press "enter" until you are again under "Account" and are ready to input each of the remaining 06-01-xx Trial Balance items.  Of course, you need to be in balance before you can finalize this Journal Entry process.

From:  Fran

    OK,  I think I am with you on all of this.  Is there any thing that I should know about when I Bank Reconcile for the first month of the new year, or June ?

From: Jim

    About the only thing I can think of is that when you go to Banking/Reconcile for next month,  you will need to process the beginning Bank Statement balance of $1,000 as if it were a June xx deposit, but that should not create a problem for you.

        From:  Fran

    I will let you know how it goes.  Thank you for mentioning in an earlier Email that another option is for me to send you the QB file and a Excel copy of the Bank Rec and you can do the above process for us.  Hopefully that will not be necessary.  Thank you again, Jim.      


    Please  click here  and go to more information about QuickBooks at Ministries here at www.bcidot.org .The bulk of this publication was originated in June 2003 and was. UPTD: March 09, 2012  .    Click here and go to List of threads (THRDs) at www.bcidot.org

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