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Learn How to Create an Accounting Worksheet Using Microsoft Excel from a Certified Public Accountant (CPA)

What you will learn

How to navigate Microsoft Excel or other computerized spreadsheet like Google Sheets

How to create an accounting system in Excel from a blank worksheet including a general journal, trial balance, general ledger, subsidiary ledgers and more

How to enter journal entries related to common transactions and list the data input forms often used to enter them into accounting software like QuickBooks

How to enter two months worth of data input into our accounting system

How to do two month of bank reconciliations, comparing the process to how accounting software like QuickBooks would accomplish the task

How to enter period end adjusting journal entries

Create financial statements


This course will walk through a comprehensive accounting problem using Microsoft Excel in a step-by-step process. You may also use another spreadsheet software like Google Sheets.

Learners will learn how to navigate Microsoft Excel as well as how to create a well-designed accounting worksheet, complete with a general journal, trail balance, general ledger, subsidiary ledgers for accounts receivable, accounts payable, & inventory, financial statements and much more.

Excel is a very good tool to learn accounting because it is much more transparent than a database program, like accounting software, QuickBooks being a common example of accounting software.

As we enter transactions into our Microsoft Excel worksheet, we will discuss how the data input would commonly be entered into accounting software like QuickBooks and what data input forms would normally drive the transactions.

The course will start out from a blank Excel Worksheet. We will build the outline for our accounting system from the blank spreadsheet.

For each new step in the process, you will have access to a downloadable Excel Workbook, containing at least two tabs, one with the answer, the new steps being completed, the other starting out where the prior presentation left off.

Therefore, you can complete the entire problem starting from one blank spreadsheet, or you can jump forward in the problem and rework any component of the problem by downloading the related worksheet at that point in the process.

After constructing the outline of our accounting worksheet, the first section will discuss the most common accounting transactions and the data input form often used in accounting software, like QuickBooks, to enter them, common data input forms including invoice, bill, deposit. . .

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We will then start our comprehensive problem, constructing a new Excel worksheet and entering beginning balances into it, imagining that we had a prior accounting system which we are now converting to our new accounting system in Excel.

We will then enter two-months worth of data input. When entering the accounting data we will create the journal entry, post it to the trial balance, giving us a good look at which accounts are impacted, post to the general ledger, and make adjustments to any subsidiary ledgers needed.

We will also update the financial statements periodically.

For the second month of operations, we create a bit more complex trial balance, allowing us to calculate both the year-to-date numbers, including both months of data input, and the current period numbers, showing income statement accounts for just the second month of operations.

After entering two months of data input, we will process two bank reconciliations, using mock bank statements. As we construct our bank reconciliations, we will discuss how accounting software often accomplishes this task.

Next, we will adjust our worksheet to enter period end adjusting journal entries as well as reversing entries. For each adjusting entry we will consider the reasons for it and how to set up the accounting system so that our adjusting entries do not mess up the data input process in the accounting department.

After entering the adjusting entries we will construct our financial statements.



Create Excel Worksheet

1025 Create Accounting Worksheet Part 1
1028 Create Accounting Worksheet Part 2
1031 Create Accounting Worksheet Part 3
1034 Create Accounting Worksheet Part 4
1037 Create Accounting Worksheet Part 5
1040 Create Accounting Worksheet Part 6
1043 Create Accounting Worksheet Part 7
1046 Create Accounting Worksheet Part 8
1049 Create Accounting Worksheet Part 9
1052 Create Accounting Worksheet Part 10
1055 Create Accounting Worksheet Part 11

Vendor Cycle, Purchases Cycle, or Accounts Payable Cycle Transactions

1180 Bill Form
1200 Pay Bills Form Check
1260 Check Form
1280 Void Check Prior Period Adjustment

Customer Cycle, Sales Cycle, or Accounts Receivable Cycle Transactions

1340 Invoice Form
1360 Receive Payment Form
1380 Deposit Form
1400 Sales Receipts Form
1420 Credit Memo Refund Form & Bad Debt Expense Service Item
1488 Credit Memo with Inventory

Employee Cycle – Payroll Cycle Transactions

1520 Pay Employees Form
1522 Pay Employees Form Part 2

Create Worksheet for New Company Accounting Transactions

6010 Set Up Excel Worksheet
6012 Set Up Excel Worksheet #2
6014 Set Up Excel Worksheet #3
6016 Set Up Excel Worksheet #4

Adding Inventory Items & Related Inventory Account Balances

6300 Inventory & Inventory Subsidiary Ledger

Add Customers, Add Vendors, & Accounts Receivable & Accounts Payable Balances

6340 Accounts Receivable & Subsidiary Ledger
6360 Accounts Payable & Subsidiary Ledger
6362 Financial Statements

Add Opening Account Balances

6380 Add New Accounts & Opening Balances
6383 Adjust Beginning Balances in Worksheet for Current Period Data Input

Month 1-Record Owner Investment, Purchase of Fixed Assets & Inventory

7020 Record Deposits from Owner and Loan
7040 Purchase of Furniture & Investment Transactions

Month 1-Enter Transactions for Purchase of Inventory

7080 Cash Payment for Inventory Linked to Purchase Order P.O.

Month 1-Enter Transactions for Sale of Inventory and Deposits

7100 Invoice Selling Inventory
7120 Receive Payment From Previous Invoice
7140 Sales Receipt Payment Received at Point of Sale
7160 Deposits From Undeposited Funds

Month 1-Enter Transaction for Sale of Inventory, Receive Payment, & Bill

7180 Invoice Created From Check Created From Purchase Order
7200 Receive Payment & Make Deposit
7220 Write Checks for Expenses & Prepaid Assets
7240 Bill Pay

Month 1-Transactions for Payroll & Create Sales Receipt

7280 Pay Employees
7281 Pay Employees Part 2
7300 Enter Billable Time & Add to Invoice
7301 Enter Billable Expenses to Invoice

Month 1-Create Financial Statements

7320 Month One Financial Statements

Month 2-Enter Loan Transaction, Create Amortization Table, & Investment

8005 Format Worksheet for New Month
8020 Make Amortization Table
8022 Make Loan Payments
8040 Short Term Investment Sales & Gains

Month 2-Enter Sale, Cash Received at Same Time & Bill for Inventory

8120 Sales Receipt & Deposit
8122 Record Receipt of Inventory with Bill Linked to P.O.

Month 2-Invcoices for Service Sales & Advanced Customer Deposit

8130 Populate Invoice Using Billable Item That was Created From P.O.
8140 Advanced Customer Payment or Unearned Revenue Method 1
8160 Apply Customer Deposit (Credit) to Invoice
8200 Advanced Customer Payment or Unearned Revenue Method 2

Months 2-Transaction for Billable Time

8320 Bill for Hourly Services of Staff Set up Items & Enter Billable Time
8322 Create Invoices Using Billable Time

Month 2-Rental Income Transaction & Advanced Customer Deposit

8342 Rental Income Customer Deposit
8344 Rental Income Estimate & Invoice

Month 2-Purchase & Finance Equipment

8360 Purchase & Finance Equipment
8362 Subaccounts Categories For Fixed Assets

Month 2-Enter & Pay Month End Bills & Pay Sales Tax

8365 Bills – Enter, Sort, & Pay
8370 Pay Sales Tax

Month 2-Enter Payroll & Pay Payroll Tax for Prior Period

8380 Enter Payroll For Second Month Part 1
8381 Enter Payroll For Second Month Part 2
8385 Pay Payroll Taxes

Month 2 Financial Statements

8420 Create Reports After Second Month of Data Input YTD
8421 Create Reports After Second Month of Data Month of February Only

Bank Reconciliations

9040 Bank Reconciliation Month One Part 1
9041 Bank Reconciliation Month One Part 2
9042 Bank Reconciliation Month One Part 3
9140 Bank Reconciliation Month Two Part 1
9141 Bank Reconciliation Month Two Part 2
9143 Bank Reconciliation Month Two Part 3

Adjusting Entries

10175 Adjust Worksheet for Adjusting Entries
10180 Adjusting Entry Accrued Interest Part 1
10182 Adjusting Entry Accrued Interest Part 2
10220 Reversing Entry Accrued Interest
10260 Adjusting Entry Accounts Receivable Sales
10300 Reversing Entry Accounts Receivable Sales
10340 Adjusting Entry Prepaid Insurance
10380 Adjusting Entry Depreciation
10400 Adjusting Entry Unearned Revenue Customer Deposit
10460 Reversing Entry Unearned Revenue Customer Deposit
10465 Loan Payable Short Term and Long-Term Portion