In: Accounting
1. On January 1, 2015, you establish a business that provides technology consulting services. You plan to target small businesses by providing convenient, on-site and remote services. At the current time, you do not plan to hire any employees. Instead, you plan to perform the services yourself, at least initially until cash flow from the business can fund employee payroll. To save money you decide to work out of your house. You plan to invest $60,000 from your personal savings to start your business. Since you learned QuickBooks in college you decide to keep your own records Setup a new company in QuickBooks with a Detailed Start using the following information (if an item is not listed use the recommendation: Company Name [your name] Consulting Federal Tax ID 123-45-6789 Address 2626 41st Street City Saint Louis State MO Zip 63127 Industry Professional Consulting Company Organization Sole Proprietor Fiscal year starts January Where to save your company file The ACC210 Files>Companies folder with the filename Project 2 Data When “Customizing QuickBooks use the recommended option unless a different option is noted below. What do you sell? Services only Estimates No Billing Statements No Invoicing Yes Progressive Invoicing No Track time No Have employees No Start tracking finances 1/1/2015 Income and expense accounts Accept recommended
2. Customize the company preferences as follows: • In the General section o Select - Use last entered date as default • In the Accounting section o Select - Use account numbers o De-select – Warn if transactions are “X” day(s) in the past o De-select – Warn if transactions are “X” day(s) in the future
3. Add the following accounts to the chart of accounts for your company: Acct # Account Name Account type 10100 [your name] Consulting Checking Bank 13000 Supplies Other Current Assets
4. Change the names of the accounts in the chart of accounts for your company: Acct # Current Account Name New Account Name 60200 Automobile Expense Van Lease Expense 64900 Office Supplies Supplies Expense
5. Add customer using the following information. Customer Name/ Company Name Barry Enterprises Address 22 Gloucester Avenue Saint Louis, MO 67127 Contact Lynn Terms Net 15 Customer Name/ Company Name Gemini Limited Address 82 Saturn Blvd Saint Louis, MO 67172 Contact Rose Terms Net 15 Customer Name/ Company Name Holden Health Address 15 Valley Blvd Saint Louis, MO 67172 Contact Sam Terms Net 15
6. Add vendors using the following information. Vendor Name/ Company Name Roland Leasing Address 91 Rider Lane Saint Louis, MO 67127 Terms Net 30 Vendor Name/ Company Name Ocean Advertising Agency Address 540 Clinton Blvd. Saint Louis, MO 67127 Terms Net 30 Vendor Name/ Company Name Vincent Computer Supplies Address 36 Cape May Drive Saint Louis, MO 67127 Terms Net 30
7. Add the following service items to the Items List. Item Name/Number and Description Rate Income Account IT Security Services $130 42700 Disaster Recovery Services $250 42700 Internet Marketing $75 42700 Social Network Marketing $100 42700
create Journal entries
1/1/2015 Owner invested $60,000 cash in the business (Check No. 3636).
1/1/2015 Leased a van for the business. Received the bill and paid one month’s rental ($1300) to Roland Leasing. (Use the 2 step method)
1/2/2015 Purchased and received a bill for $800 of computer supplies on account from Vincent Computer Supplies. (Supplies like these will be considered Assets.)
1/7/2015 Provided and invoiced 44 hours of IT Security Services to Gemini Limited on account.
1/12/2015 Provided and invoiced 60 hours of Disaster Recovery Services to Barry Enterprises on account.
1/15/2015 Received bill from Ocean Advertising Agency for $1,500 of advertising expenses.
1/21/2015 Received and deposited Gemini Limited payment (Check No. 101) for services provided on 1/7/2015.
1/22/2015 Provided and invoiced 102 hours of IT Security service to Gemini Limited on account.
1/25/2015 Paid $800 for computer supplies purchased on 1/2/2015 from Vincent Computer Supply.
1/27/2015 Received and deposited Barry Enterprises payment (Check No. 27) for services provided on 1/12/2015. 2/1/2015 Received the bill and paid one month’s rental on van ($1300) to Roland Leasing. (Use the 2 step method)
2/1/2015 Purchased and received a bill for 2 new laptop computers on account from Vincent Computer Supply for $2100. (These are equipment assets that will need to be depreciated.)
2/1/2015 Purchased and received a bill for a copier/printer/fax machine on account from Vincent Computer Supply for $540. (This is equipment assets that will need to be depreciated.)
2/8/2015 Provided and invoiced Gemini Limited for 7 hours of Internet Marketing consulting on account.
2/10/2015 Paid Ocean Advertising Agency for bill received on 1/15/2015.
2/14/2015 Received and deposited Gemini Limited payment (Check No. 30) for services billed on 1/22/2015.
2/15/2015 Provided and invoiced Holden Health for 15 hours of Social Network Marketing consulting on account.
2/22/2015 Received Gemini Limited payment (Check No. 40) for consulting services billed on 2/8/2015.
2/28/2015 Received payment from Holden Health (Check No. 250) for consulting services billed on 2/15/2015.
2/28/2015 Deposited payments received from Gemini Limited (on 2/22/2015) and Holden Health (today).
2/28/2015 Paid Vincent Computer Supply for both of the bills received on 2/1/2015 for the computers and copier/printer/fax.
3/1/2015 Received the bill and paid one month’s rental on van ($1300) to Roland Leasing. (Use the 2 step method) 3/10/2015 Provided and invoiced Holden Health for 10 hours of Internet Marketing consulting on account.
3/15/2015 Purchased and received a bill for $600 of computer supplies on account from Vincent Computer Supplies. (Supplies like these will be considered Assets.)
3/20/2015 Provided and invoiced 20 hours of Social Network Marketing consulting to Barry Enterprises on account.
3/25/2015 Received and deposited payment from Holden Health (Check No. 280) for consulting services billed on 3/10/2015.
UNADJUSTED TRIAL BALANCE |
||
CASH |
87915 |
0 |
COMMON STOCK |
0 |
60000 |
LEASED VAN |
3900 |
0 |
ACC PAY VINCENT |
0 |
600 |
COMP SUPPLIES |
4040 |
0 |
ADVT |
1500 |
0 |
SALES |
0 |
38755 |
GEMINI |
0 |
0 |
BARRY |
2000 |
0 |
99355 |
99355 |
|
UNADJUSTED TRIAL BALANCE |
||
CASH |
87915 |
0 |
COMMON STOCK |
0 |
60000 |
LEASED VAN |
3900 |
0 |
ACC PAY VINCENT |
0 |
600 |
COMP SUPPLIES |
4040 |
0 |
ADVT |
1500 |
0 |
SALES |
0 |
38755 |
GEMINI |
0 |
|
BARRY |
2000 |
0 |
99355 |
99355 |
|
CASH |
|||||
DATE |
DETAILS |
$ |
DATE |
DETAILS |
$ |
COMMON STOCK |
60000 |
ROLAND VAN |
1300 |
||
GEMINI |
5720 |
VINCENT |
800 |
||
ACC REC BARRY |
15000 |
ROLAND |
1300 |
||
GEMINI |
13260 |
OCEAN ADVT |
1500 |
||
“ |
525 |
VINCENT |
2100 |
||
H HEALTH |
1500 |
“ |
540 |
||
“ |
750 |
ROLAND |
1300 |
||
BAL C/D |
87915 |
||||
96755 |
96755 |
SALES |
|||||
GEMINI |
5720 |
||||
BARRY |
15000 |
||||
GEMINI |
13260 |
||||
BAL C/D |
“ |
525 |
|||
H HEALTH |
1500 |
||||
“ |
“ |
750 |
|||
BARRY |
2000 |
||||
38755 |