QUICK BOOKS PROJECT

Read the background information for Business Solutions, Inc.

Create QB company file for Business Solutions, Inc. with 12/31/12 balances (from Trial Balance)

Enter first quarter 2013 transactions (Transactions tab), using appropriate transaction module (see note below*)

Make adjusting entries necessary (AJE details tab) at March 31, 2013 (use working trial balance)

Print to hand-in:

a) Working Trial Balance at 3/31/13 (Accountant tool) after adjustments

b) Income Statement for the first quarter, 2013

c) Balance Sheet at March 31, 2013

d) Vendor Balance Summary at 3/31/13 (Accts Payable list subsidiary ledger)

e) Customer Balance Summary at 3/31/13 (Accts Receivable subsidiary ledger)

f) Journal for first quarter, 2013

*Notes:

Transactions modules:

Entry made by QB

Use

To record

Debit

Credit

Enter bills

purchase on account

Inventory/supplies

Acc pay

Pay bills

payment to vendor

Acc pay

Cash

Enter invoices

billing customers for goods/services

Acc rec

Sales/Revenue

Receive payments

customer payment on account

Cash

Acc rec

Write checks

cash disbursement to non-vendor

Expense/asset

Cash

Make deposits

cash receipt from non-customer

Cash

various

Journal entries

non-recurring transactions

various

Business Solutions, Inc. is a closely-held corporation. It's sole stockholder, Santana Rey, started the business in early 2012 with and
initial investment of cash, furniture and equipment, and computer equipment in exchange for $73,000 of capital stock. He operates the
business to provide computer consulting services to small business, and to sell a particular product, a "widget". BI Inc. caters to
small businesses in the immediate geographic area, mostly owned by friends and acquaintences of Mr. Rey. He is
still establishing credit-worthiness with new vendors, who are offering him new customer level discounts as he proves his payback
ability.

BI Inc. operates out of a small storefront in a local shopping mall. Mr. Rey employs an administrative assistant, Lyn Addie, to handle
office operations, answer the phone, and keep his schedule. She works for the flat rate of $125 per day with no benefits.
She isn't a full-time employee and is considered contract labor, without payroll deductions.

BI Inc. maintains a simple retailer bookkeeping system using Quickbooks 2013. The company maintains (tracks) inventory with a perpetual system.
They invoice Computer Consulting revenues using a service invoice, and invoice merchandise sales (sales of widgets) using a product invoice.
They source their widgets from vendors at $10 per widgets, selling them to different customers at different prices, depending upon their line of
business. Because of his technical speciality, Mr. Rey customizes widgets for each customer's use, thus justifying a variable sales price structure.

BI Inc. offers terms of 2/10, n/30 to all of its credit customers for widget sales in order to encourage rapid payment and repeat business.
The terms are favorable in the marketplace, and therefore BI Inc. is quickly building a loyal customer base for its widgets.

BI, Inc. maintains one bank account for all business transactions. The business reimburses the owner mileage at the rate of $.32/mile for
use of his personal automobile when he is working.

Depreciation is recorded on the fixed assets as follows:
Furniture and equipment: 6 yr useful life, $400 salvage value, straightline method
Computer equipment: 3 yr useful life, double-declining balance method

A physical count of widgets (merchandise inventory) and computer supplies is conducted at the end of each quarter. Shortage in the merchandise
inventory will be expensed to an inventory shrinkage account, when needed. So far the physical count of inventory has been in agreement with the

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