qb week

What was the book value of the computer equipment on 12/1?________

Larry received $3,000 cash (which he deposited into his Checking account) for the equipment. Depreciation expense was last recorded on 9/30/17. Using the information given and calculated above, what is the amount of the gain on the sale? ________________

Prepare a Journal Entry on 12/1 to record the sale of the equipment by debiting Checking for the amount of cash received; and Computer Equipment: Accumulated Depreciation for the amount you calculated above, and crediting Computer Equipment:Original Price for the original cost; and Gain on Sale of Fixed Assets for the amount calculated above. Use Wk 5-#1 in the memo field. Note: when you enter the first debit amount, the credit field will auto-fill with that amount, so you’ll need to change the amounts as you enter the transaction. When you’re done, click Save & New, then OK to the message about tracking Fixed Assets.

Recording annual depreciation expense:

Depreciation was last recorded on 9/30/17 Therefore, you need to calculate and record the depreciation expense for all fixed assets for the period of 10/1/17 - 12/31/17 using the straight-line method and the following estimates: (NOTE: use the Original Price in the Chart of Accounts for the Cost of each asset)

**Remember that this equipment was not purchased until 11/1/17, so Larry only owned it for 2 months.

Total depreciation expense: $________

Prepare one Journal Entry on 12/31 to record depreciation on all assets. Debit Depreciation for the total amount of the expense and credit each of the Accumulated Depreciation accounts for the amounts calculated above. Use Wk 5-#2 in the memo. When done, click Save & Close, then OK to the Fixed Asset Manager message.

Run an Adjusting Journal Entries report for This Month. What is the total amount of debits? _________

Close the report (Don’t memorize).

#3 – On 12/1 Larry borrowed $30,000 from the bank by signing a 6-month, 8% interest note. He deposited the money into his checking account.

Prepare a General Journal Entry to record the loan. Use Notes Payable for the credit. When you enter it, you’ll get a message that it’s not in the Account List. Click Set Up, then Other Account Types and pick Other Current Liabilities from the drop-down menu, then click Continue. In the next box, make sure the Account Name says Notes Payable, then click Save & Close. Continue with the journal entry by typing Wk 5-#3 in the Memo field. After you’re done, click Save & New. A blank journal entry form will show up; use it for the next entry.

#4 – Record the accrued interest on the loan from 12/1 through 12/31.

What is the amount of interest due for that time period?_______________

Calculations:__________________

Change the date on the entry to 12/31, and record the interest using Interest Expense/Interest on Loan for the debit and Interest Payable for the credit. This account (Interest Payable) will also need to be set up as an Other Current Liability. The amount should be what you just calculated in transaction #2 above . Type Wk 5-#4 in the Memo field .

Click Save & New.

#5 – Larry paid the principal and interest on the bank loan.

What is the due date of the loan?_________________ (Use the information given in transaction #3 to calculate the date).

What is the remaining amount of interest due? _________

Calculation: _________________________________

Change the date to the due date, then prepare the Journal Entry to record the payment, using Wk 5-#5 in the memo. HINT: you will use the following accounts: Note Payable, Interest Payable ($200), Interest Expense/Interest on Loan (for the remaining interest balance), and Checking (for the total amount paid). If you’ve done it correctly, the Credit field should auto-fill to 31,200 .

Click Save & Close. Say Yes to the message about the transaction being more than 30 days away.

Run an Adjusting Journal Entries report for This Fiscal Year. Click Run.

What is the total amount of all the debits?______________

Sales Tax payment:

On 1/4/18, Larry paid the sales tax due to the taxing agencies. From the Home page, in the Vendor section, click the Manage Sales Tax icon, then click Pay Sales Tax. Change the check date to 1/4/18 and the Show Sales tax due through date to 12/31/17 . Leave the check number as is. Put a check mark by each agency.

What is the amount of the tax to be paid to each of the following agencies:

1. San Domingo: $____________

2. County, San Thomas: $_____________

3. Assessment: $_____________

Click OK, then Close.

Go to the Chart of Accounts and find the Sales Tax Payable account. What is the balance? $_________

Payroll:

The payroll function in QB is a little more involved than I want to get into, so you’ll just be looking around a little to find information.

Click on the Employees button (left tool bar). The first employee that comes up is Duncan Fisher. Within that window, click Payroll Summary (under the reports section in the top right corner of the window).

1. What is his regular hourly rate? $_________

2. What is his overtime rate? $ ________

Close the report and click on Jenny Miller. From looking at the amounts of her paychecks.

1. Does she appear to be a salary or an hourly employee? ______________.

2. How can you tell? _____________________________

Click on the Payroll Summary report.

3. What is her title? __________________________

4. What amount (if any) is paid by Larry for Federal Unemployment for Jenny? $______

Go to Shane Hamby and click on the Payroll Summary report.

1. What is his title? ___________________

2. How much has Shane paid this quarter for Disability? $________

3. How much, if anything, does he pay for Health Insurance? __________________

Close all windows and the company.