Name Date Class

QuickBooks Guide
Step-by-Step Instructions
Mini Practice Set 3
INSTRUCTIONS
Begin a Session
Step 1 Restore the Mini Practice Set 3.QBB file.
Work the Accounting Problem
Step 2 Review the payroll information provided in your textbook for Happy
Trees Landscaping Service.
Step 3 Change the employee record for Student Name using the Employee
List option. Enter your first name in the First Name field and your
last name in the Last Name field. Do not change any of the other
employee information.

QuickBooks Guide
4)0 All of the employee information is already recorded in the
problem set for you.

Step 4 Record the weekly payroll using the Pay Employees option of the
Employees menu.

4)0 If the Special Situation Calculation window appears, click

Don’t remind me again.

IMPORTANT: You must manually type each employee’s payroll tax

deductions. The other deductions will automatically appear. Use the
Federal Income Tax Table found in your workbook. Remember to type
Copyright © McGraw-Hill Education. All rights reserved.

the employee deductions (Federal Income Withholding, Medicare

Withholding, etc.) as negative amounts.
Step 5 Print the paychecks by clicking Continue in the Enter Payroll
Information window. Use the Print paychecks on check stock
option. Click on Create Paychecks to go the Confirmation and Next
Steps screen to print.

4)0 QuickBooks automatically generates the entries to record

the payroll, but it does not record the employer’s payroll tax
expense without having paid for the QuickBooks payroll service.

Prepare a Report and Proof Your Work

Step 6 Print an Employee Earnings Summary report for the current week.

Mini Practice Set 3 ■ 1

20_Mini Practice Set 3 QuickBooks Guide.indd 1 7/24/15 10:21 AM

 Name Date Class

4)0 While viewing an Employee Earnings Summary report, you can

edit a payroll entry by double clicking the entry in the report.
Next, double click the entry in the Transactions by Payroll Item
window. Finally, click the Paycheck Detail button and make the
necessary changes. Then click Create.

Step 7 Proof your work. Make any corrections as needed and print a revised
report, if necessary.
Step 8 Calculate and record the employer’s payroll tax expense (Social Security,
Medicare, FUTA, SUTA) using the Make General Journal Entries
option.
Step 9 Record the deposit for the taxes owed to the Federal government and
type the monthly insurance premium ($228) using the Write Checks
option. Remove the Print Later option so you can manually type the
check number.
QuickBooks Guide

4)0 When QuickBooks prompts you that you are about to pay
payroll liabilities click Cancel.

4)0 Display a General Ledger report to determine the balances in

the payroll tax liability accounts.

Step 10 Print a Journal report for the week of July 21–25, 2015.
Step 11 Print a General Ledger report for July.
Step 12 Print a Payroll Summary report for the quarter ending
September 30, 2015. Use the Customize Report button and
filter each employee separately and print each report.

Copyright © McGraw-Hill Education. All rights reserved.

Analyze Your Work
Step 13 Complete the Analyze activity.
End the Session
Step 14 It is recommended that you back up your work for this session.

You can process state payroll tax forms using QuickBooks.

List the steps to print the state payroll tax forms on a
separate sheet of paper.

2 ■ Mini Practice Set 3

20_Mini Practice Set 3 QuickBooks Guide.indd 2 7/24/15 10:21 AM

 Name Date Class

MINI PRACTICE SET

Happy Trees Landscaping Service
3
Audit Test
Instructions: Use your completed solutions to answer the following questions.
Write the answer in the space to the left of each question.
Answer
1. What rate is used to compute
employee state income tax?
2. What rate is used to compute
the employer’s Federal unemploy-
ment tax?

QuickBooks Guide
3. What commission amount did Greg
Millette earn?
4. How many employees reached the
maximum taxable amount for the
social security tax this period?
5. What was the total net pay for the
pay period ending July 25?
6. How many payroll checks were
issued for this period?
7. What was the amount of check 972?
8. What was the amount paid to
American Insurance Company for
employee hospital insurance?
9. What accounts were debited when
Copyright © McGraw-Hill Education. All rights reserved.

check 973 was recorded in the

general ledger?
10. What is the ending balance of the
Employees’ Federal Income Tax
Payable account at July 31?

Mini Practice Set 3 ■ 3

20_Mini Practice Set 3 QuickBooks Guide.indd 3 7/24/15 10:21 AM

 Name Date Class

11. What is the ending balance of the

Cash in Bank account at month end?
12. What is the amount of payroll
check 312?
13. What is the amount of accumulated
earnings for Michael Alter after the
July 25 paycheck?
14. What amount was remitted with the
Federal Tax Deposit Coupon Form
8109 on July 25?
15. What total amount of federal
income tax was withheld from the
paycheck of Greg Millette at the
July 25 pay period?
16. What is the total of payroll liabili-
QuickBooks Guide

ties at July 25?

17. What amount was debited to Salaries
Expense on July 25?
18. What is the balance in the Happy
Trees Landscaping Service regular
bank account after check 974 is
recorded?
19. What is the next pay period date for
this business?

Copyright © McGraw-Hill Education. All rights reserved.

4 ■ Mini Practice Set 3

20_Mini Practice Set 3 QuickBooks Guide.indd 4 7/24/15 10:21 AM