qbp

ENT 210

QUICKBOOKS PROJECT

50 POINTS

GENERAL JOURNAL ENTRIES

Prepare journal entries for the following transactions:

1. On 1/4/18, Larry borrowed $20,000 by signing a 3- year Bank Loan at 6% interest. The money is to go into his checking account. (hint: credit Bank Loan)

2. On 1/5/18, Larry issued common stock to his Dad in exchange for $40,000 cash. The money is to go into his savings account.

WRITING CHECKS:

On 1/10/18, Larry wrote checks for the following items:

3. Paid Patrick Campion, CPA, $3,000 for help in setting up QuickBooks (hint: this is a professional accounting fee)

4. Paid Townley Insurance Agency $2,400 for a one-year insurance policy (remember, this is paid in advance). NOTE: we do NOT want to go to “Pay Bills” (if that message comes up), just continue writing the check.

5. Paid $4,000 to Sowers Office Equipment for a copier (hint: this is the original price of the Office Equipment).

PURCHASE TRANSACTIONS:

6. On 1/15/18, Larry received a bill from Middlefield Nursery (there is no Purchase Order involved) in the amount of $4,500 for Subcontractor Job work. The terms on the invoice were “Due upon receipt”.

7. Also on 1/15, Larry created a Purchase Order to Connor Garden Supplies for 500 bags of soil at $5.30 per bag.

a. What is the total amount of the Purchase Order?__________

8. On 1/17, the soil was received from Connor with a bill which had terms of 2/10, n/30. Save the terms.

b. What is the due date of the bill?____________

c. What is the Discount date?__________

9. On 1/21, Larry paid both the Middlefield and Connor (the one that’s due 2/16) invoices. Larry took the discount on the appropriate invoice. These checks will be printed later, so don’t assign check numbers.

d. For which vendor did Larry take the discount?___________

e. How much was the discount taken?_______ (don’t forget you have to actually do something with the discount, not just look at the amount)

f. What is the total amount of the bills that were paid?____________

10. Find the Vendor information for Connor Garden Supplies for This Fiscal Year.

g. What is the amount of check #1126?____________

11. Do the same thing for Middlefield Nursery

h. What is the amount of check #1163?_______________

SALES TRANSACTIONS:

12. On 1/21, Larry created an invoice to Craig Crider for one (1) week of gardening services for $500 (say OK to the message about changing the standard price, if necessary). The terms of the invoice are Net 30.

13. On 1/24, Larry created an invoice to Cristina Andres for 1,000 ¾” Vinyl Irrigation Hoses (at $.27 each). The terms for Ms. Andres are 1/10, n/30.

14. On 1/25, Ms. Andres returned 100 of the hoses for a full refund because they were defective. The credit memo was applied to her 1/24 invoice.

a. What is the amount of the credit memo?___________

15. On 1/31, Larry received a check (#150) from Craig Crider to pay his invoice in full.

16. On 2/1, Larry received a check (#840) from Cristina Andres in payment of her invoice less credits and discounts.

a. What was the amount of the payment received?____________

b. What was the amount of discount taken?_____________

ENT 210

QUICKBOOKS PROJECT

50 POINTS

UNDEPOSITED FUNDS:

Record the deposits for the payments received from Andres and Crider. Make sure the deposit is going into the Checking account.

17. What is the total amount of the deposit?________________

ADJUSTING ENTRIES:

On 1/31, Larry made three (3) separate journal entries for the following adjustments:

18. $350 of operating supplies have been used.

19. $200 of prepaid liability insurance has expired.

20. Calculate and record the interest accrued on the Bank Loan (from transaction #1) for the month of January (remember that this is an expense/liability for Larry, and that the interest is on a loan, not finance charges):

a. Calculation:_______________________

b. Amount of interest Payable:______________

FIXED ASSETS:

From the Chart of Accounts, find the book value of the following assets:

21. Office equipment: ___________________

22. Building: __________________

23. Truck: ______________

REPORTS:

Create the reports listed below for This Fiscal Year. (remember to close, but not memorize the reports).

24. Adjusting Journal Entries

What is the total amount of Debits?________________

25. Trial Balance: What are the balances in the following accounts?

a. Checking____________

b. Savings______________

c. Supplies_______________

d. Prepaid insurance_________________

e. Bank loan________________

f. Common stock_____________

g. Discounts_______________

h. Cost of goods sold___________________

i. Operating supplies__________________

j. Insurance: Liability_________________

k. Interest Expense: Bank Loan ________

l. Job Expenses: Subcontractors_______________

m. Professional Fees: Accounting________________

n. Total Debits ________________

ENT 210

QUICKBOOKS PROJECT

50 POINTS

26. Balance Sheet (Standard).

What is the total amount of Liabilities & Equity?____________

27. Profit and Loss (Standard). (AKA Income Statement)

What is the Net Income amount?______________

Indicate on which statement each account listed below belongs on (Balance sheet or Income Statement (AKA Profit/Loss) and under which specific category (i.e Dividends, Expenses, Assets, Liabilities, Equity, Revenue) each of the following accounts are classified as:

#	ACCOUNT	STATEMENT	CLASSIFICATION
28	Retail Sales
29	Savings
30	Professional Fees
31	Bank of Anycity Loan
32	Truck
33	Misc. Income
34	Dividend
35	CalOil Card

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