Quickbooks project
student_2013
qb_project_s14.xlsxProject Requirements
| 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 | various |
Quickbooks Project Requirements
Background Info
| 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 |
| inventory account balance, but Mr. Rey continues to be concerned about the physical safety of his widgets (he stores them in his brother-in-law's basement). |
Business Solutions, Inc. Background Information
AACC439 Spring 2014 Quickbooks Project Dr. Lewellyn
Trial Balance
| Debit | Credit | |||||||
| Cash | 48372 | |||||||
| Accounts receivable* | 5668 | |||||||
| Allowance for bad debts | ||||||||
| Merchandise inventory | ||||||||
| Computer supplies | 580 | |||||||
| Prepaid insurance | 1665 | |||||||
| Prepaid rent | 825 | |||||||
| Furniture and equipment | 8000 | |||||||
| Accumulated depreciation - furniture and equipment | 400 | |||||||
| Computer equipment | 20000 | |||||||
| Accumulated depreciation - Computer equipment | 1250 | |||||||
| Accounts payable | ||||||||
| Wages payable | 500 | |||||||
| Unearned computer services revenue* | 1500 | |||||||
| Capital stock | 73000 | |||||||
| Retained earnings | 8460 | |||||||
| Dividends | ||||||||
| Computer services revenue | ||||||||
| Sales Income | ||||||||
| Sales discounts* | ||||||||
| Cost of goods sold | ||||||||
| Purchase discounts* | ||||||||
| Advertising and promotion | ||||||||
| Bad debt expense | ||||||||
| Computer supplies expense | ||||||||
| Depreciation expense | ||||||||
| Freight-in | ||||||||
| Insurance expense | ||||||||
| Rent expense | ||||||||
| Repairs and maintenance | ||||||||
| Travel expense | ||||||||
| Wages expense | ||||||||
| 85110 | 85110 | |||||||
| *Notes: | ||||||||
| Fiscal year end is Dec 31 | ||||||||
| Acc/rec balance from Gomez Co. | ||||||||
| Unearned computer consulting revenue received in November 2012 from Alex's Engineering Co. for work to be completed early in 2013 | ||||||||
| Sales discounts sub to the Sales account | ||||||||
| Purchase discounts sub to CGS |
&"-,Bold"&8Business Solutions&"-,Regular"&11 &"-,Bold"&8Trial Balance 12/31/12*
Transactions 1st quarter 2013
| 4-Jan | Wrote check (#205)* to Lyn Addie for five days' work at the rate of $125 per day | Notes: | ||||||||
| (four of five days were accrued at year-end, 2012) | Use beginning check #205 | |||||||||
| 5-Jan | The owner, Santana Rey, invested an additional $25,000 cash in exchange for common stock. | Use beginning product invoice #181, service invoice #11 | ||||||||
| 6-Jan | Issued purchase order to Kansas Corp for 580 widgets ($10 per widget) | Use appropriate invoice form | ||||||||
| 7-Jan | Received merchandise and invoice from Kansas Corp., terms 1/10, n/30 | (service or product) | ||||||||
| 9-Jan | Received (deposited) $5,668 from Gomez Co, in full payment on account. | All Merchandise Sales on account terms 2/10, n/30 | ||||||||
| 11-Jan | Invoiced Alex's Engineering Co &5,500 for a five-day Computer consulting project | Invoices from vendors dated day received | ||||||||
| (total services = $7,000 minus the advance payment of $1,500 prepaid in 2012) | ||||||||||
| 13-Jan | Invoiced Liu Corp. $4,700 for sale of merchandise (356 widgets) that cost $3,560. | |||||||||
| 15-Jan | Wrote check to ABC Transport for $600 to pay freight charges. | |||||||||
| 16-Jan | Paid (check) Kanas Corp. for payment in full of 1/7 invoice | |||||||||
| 22-Jan | Received (deposited) balance due from Liu Corp, net of discount. | |||||||||
| 24-Jan | Issued purchase order to Kansas Corp. for 850 widgets ($10 per) | |||||||||
| 26-Jan | Received merchandise (850 widgets) and invoice from Kansas Corp., terms 1/10, n/30 | |||||||||
| 31-Jan | Wrote check to Lyn Addie for 10 days work at $125 per day. | |||||||||
| 1-Feb | Wrote check to Hillside mall, $2475, for 3 months rent in advance | |||||||||
| 3-Feb | Paid (by check) Kansas Corp. for balance due, net of discount. | |||||||||
| 5-Feb | Wrote check for $600 to Aiken Standard for February advertising | |||||||||
| 11-Feb | Received (deposited) balance due from Alex's Engineering for Jan invoice | |||||||||
| 15-Feb | Wrote check to owner (Santana Rey) for cash dividends, $4,800. | |||||||||
| 23-Feb | Invoiced Delta Co. for merchandise sold (322 widgets) for $2,660 (cost $3,220) | |||||||||
| 26-Feb | Wrote check to Lyn Addie for eight days' work at $125 per day. | |||||||||
| 27-Feb | Wrote check to Santana Rey to reimburse automobile mileage (600 miles at $0.32 per mile). | |||||||||
| 1-Mar | Received (deposited) $600 from Alex's Engineering for consulting services to be performed over next 3 months | |||||||||
| 8-Mar | Purchased on account $2,730 of computer supplies from Harris Office Products | |||||||||
| 9-Mar | Received (deposited) balance due from Delta Co. for February 23 invoice. | |||||||||
| 11-Mar | Wrote check to Baker IT Solutions for $960 for computer repairs just completed | |||||||||
| 16-Mar | Received (deposited) $5,260 from Dream, Inc. for computing services just provided | |||||||||
| 19-Mar | Paid (check) Harris Office Products in full of March 8 purchase | |||||||||
| 24-Mar | Invoiced Easy Leasing for $9,047 of computing consulting services | |||||||||
| 25-Mar | Invoiced Wildcat Services for merchandise sales ( 200 widgets) of $2,800, costing $2,000 | |||||||||
| 30-Mar | Invoiced IFM Company for merchandise sales (105 widgets) of $2,220, costing $1050 | |||||||||
| 31-Mar | Wrote check to reimburse Santana Rey for mileage (400 miles at $0.32 per mile). |
Transactions for 1st Quarter, 2013
AJE details
| Adjustments required at 3/31/13 based upon following information: | |
| * | Bad debts are estimated to be 1% of total Sales |
| * | Office equipment is depreciated using SL, 6-yr useful life, $400 salvage value |
| * | Computer equipment is depreciated using DDB, 3-yr useful life |
| * | Prepaid rent at 3/31 should reflect only one month remaining (April) |
| * | Prepaid insurance expires $215 per month |
| * | Computer supplies on hand at 3/31, $1810 |
| * | Physical count of widgets reveals balance on hand at 3/31, $4425 |
