To complete this exercise, you must be in the Sample company. From your QBOA account, click on the Gear icon on the top right corner of the screen, then select Sample company.

Note that you will be logged out of your current account. If you are sure, click "Continue" to confirm. 

Scenario: Craig just landed a contract to build a football field for the new high school. Because it is so large, he has hired Excavation Excellence to prepare the field before his landscapers can get to work. The estimate from Excavation Excellence is $120,000, and they require a 30% deposit to secure the contract. Craig is hoping to land other large contracts like this and hire them in the future.

You will need to set up Craig with a vendor prepayment account and pay the Excavating Excellence downpayment so they can get started.

First, create the vendor prepayment asset account.

Click "Accountant Tools", then select "Chart of accounts".

In the Save account under field, select "Other Current Assets".

In the Tax form section, select "Other Current Assets".

In the Account name field, type "Vendor Prepayment".

Next, create an Expense for the 30% deposit. 

Click the "+New" button, then select "Expense".

Since Excavation Excellence is a new vendor, we will need to set them up, which can be done directly within the Expense transaction.

In the Payee field, type "Excavation Excellence", then select "+ Add new Excavation Excellence".

On the first line, in the Category field, select "Vendor Prepayment".

Fastandeasyqbo

QuickBooks

QuickBooks is a widely-used accounting software developed by Intuit, designed to simplify financial management for businesses of all sizes. It provides a user-friendly platform for tasks like invoicing, expense tracking, payroll processing, and generating financial reports. QuickBooks automates many financial processes, making it easier for businesses to monitor their financial health, prepare taxes, and manage cash flow. With its various versions and integrations, QuickBooks caters to the needs of freelancers, small businesses, and larger enterprises, offering a flexible and comprehensive solution for efficient accounting and financial management.

app.qbo.intuit.com

fastandeasyqbo.com

Scenario: This exercise has three parts, with the scenario for each shown as you go through the exercise. Be sure to do all three parts of this exercise in the same Sample company session.

A.4.5 Recording a Vendor Prepayment

Scenario, Part 1