Case Problem 6-2 On June 1,2019, Olivia Chen began her business, Olivia's Web Solutions In the first month of business, Olivia set up the otlice, provided web page design and Internet consulting services, and recorded month-end activi In July, the second month of business, Olivia began to purchase and sell inventory items of computer hardware and software. In June and July Olivia recorded the financial activities using a manual accounting On August 1, 2019, Olivia decides to switch her accounting method to QuickBooks. Olivia has organized the information about the company but has hired you to convert the accounting records to QuickBooks actinity 1. Use the information below to create the company file and record hod the information for the company using the Detailed Start met and the EasyStep Interview window. Where no specific information is given, accept the Easy Step Interview window default setting. CH6 Your Namel Olivia's Web Solutions Company Name Tax ID Address: 547 Miller Place Westport, NY 11858 Couniry Phone Fax: E-mail: 516-555-5000 516-555-6000 LIV@ ppi-edu.net General Product-hased Business Sole Proprictorship Industry: Fical Year Start Passasordi Save As Sell: Sales Tax Estimates: ca Solutions Botl Tracking Customer No No Yes Statements: Invoces: Progress Invoicing: Balls You Our Tracking Iwventory: Tracking Time Yes Yes No No 08/01/2019 Start Tracking Remove the check mark from each of the following accounts: Shipping and Delivery Income Freight and Shipping Costs Merchant Account Fees Product Samples Expense Purchases- Resale Items Automobile Expense Bank Service Charges CHAPTER& I New Company Setup-Detailed Start 259 Computer and Internet Expenses Dues and Subscriptions Meals and Entertainment Postage and Delivery Professional Fees Repairs and Maintenance Travel Expense Ask My Accountant Insert a check mark to the left of the following account: Sales Discounts 2. Use the information in Table OWS-Customers to create and update the Customer Center using the QuickBooks Desktop Setup window. Be sure to use the date August 1, 2019 TABLE OWS Customers City, State, Zip New Hyde Park, NY 11523 Freeport, NY 11634 Glen Cove, NY 11536 s 800.00 rte's Auto Repair Breathe Easy Long bland Water iget' RestaurantMigual Porez S16-565-3236 30 Wilis Ave Leon Artie Allen Scot Customer 516-555-1221 32 W. 11th Street 516-555-6868 558 Adiantic Ave. 516-555-4747 87-54 Bayview Ave Service Miquels Schneider Famly Sehorm & Smnsth Singh Famly South Shore School Joseph Porter 516- Roslhn, NY 11541 363 Farmers Rd. Syosset, NY 11547 516-555-8989 1,000.00 Jchnny Jerry Sehorn 212-555-333 5m Ave. David Singh 718-555-3233 3e3 Marathon Parkway 800.00 wrk NY 10022 Lise Neck, NY 11568 55-4545 3e08 Ocean 12,056.00 District South Beach, NY 11365 Thrity Stores William Way 718-555-2445 23 Boston Ave 718-565-2446 Bronx, NY 11693 1,500.00 3. Use the information in Table OWS-Vendors to create and update the Vendor Center using the Quick Books Desktop Setup window. Be sure to use the date August 1, 2019 TABLE OWS Vendors ARC Phone Avin R. Clinton 516-555-6363 668 Lakeville Ave. City, State, Zip Balance Garden City, NY 11678 201 E. 10th Street New York, NY 10012 Chris Chrbet 212-555-8777 $1,200.00 260 CHAPTER & 1 New continues Start TABLE Ows vendors.cont 700-555-6564 3831 Gate Greenboro, NC 27407 55 Broadway Room 55 New York: Eastern Muuai 212-555-6363 NY nterSoft Development Customer 1.700 Lewis Furmiture Co LI Power Company Martin Computer Manny Lewis 631-555 6161 1225 Route 110 516-555-8888 5444 Northern Ave 516-555-7777 366 N. Frankin St 974-555-7873 684 Mountain View Ad Garden City, NY 11568 1,600.00 Netsoft Development NYS Tax Dept Office Plus Olivia Chen 516-555-3214 45 Jericho Tpke 375.00 Service 617-555-8778 2554 Bedford Rd Boston, MA 02164 Systems Service Jerermy Jones 516-565-2525 36 Sunrise Lane 516-555-2526 615-555-4545 615-555-4546 Hempstead, NY 11004 877 Route 5 Ft. Lauderdale, FL 70089 Textpro Software, Inc. Customer Service 4. Use the information in Table is to update the Item List using the QuickBooks Deskto . Be sure to use the date August 1, 2019 TABLE OWS teins Item Name and Description Service Mems Hand Total $100 125 Web Page Design Services nvetory Part items 2,000 $1,000 10 $10,000 3,600 75 18 1,350 1,000 600 150 20010010 300 12 HTML Software Desktop Pub. Software rs feature. Use the following information s Activate the account numbe to customize the Chart of Accounts List Number Number 1700 Computers 15000 Furniture and 17000 Accumulated 30800 Owners Draw TABL Equipment Depreciation Sales Income 1750 Accum. Dep., Computers 9020 4060 1100 6050 Subaccount of 1700] Olivia Chen, Drawings Sale of Computers 48300 Sales Discounts 60000 Advertising and Advertising Expense Promotion 62400 Depreciation Expense 6075 Deprec. Exp., Computers 63300 Insurance Expense 63400 Interest Expense [Account Type: Other Expense] Office Supplies Expense 7000 6325 64900 Office Supplies 67100 Rent Expense 68100 Telephone Expense 6450 68600 Utilities 6500 Utilities Expense 6. Delete the following account: 47900 Sales Open and close the following windows to allow QuickBooks to create default accounts: 7. Create Invoices Enter Sales Receipts Enter Bills Item List: New Item: Inventory Pa 8. Customize the system default account Number Account Name_ 11000 Accounts Receivable 12000 Undeposited Funds 12100 Inventory Asset 20000 Accounts Payable 25500 Sales Tax Payable 1200 1250 1260 2010 Inventory of Computers 3000 Opening Balance Equity 3010 Olivia Chen, Capital 32000 Owners Equity 50000 *Cost of Goods Sold 060 Cost of Computers Sold 3030 Accumulated Earnings 9. Customize the payment Terms List to list only the following: 2/10, Net 30 Days Net 10 Days Net 15 Days Net 30 Days 282 CRAPTER& New Company Setup-Detailed Start Use the information in Table ows-New Accounts to update the Chart of Accounts List. 10. owS unts Number Account Name Account Type Bank Other Current Asset Other Current Asset Other Current Asset Other Current Asset Other Current Asset Other Current Asset Other Current Asset Fixed Asset Fixed Asset Fixed Asset Fixed Asset Fixed Asset Fixed Asset Fixed Asset Other Current Liability Other Current Liability Income Income Income Income Income Cost of Goods Sold 1010 Cash Operating 1265 Inventory of Scanners 1270 Inventory of HTML Software 1275 Inventory of Desktop Pub. Soft. 1300 Computer Supplies 1305 Office Supplies 1410 Prepaid Advertising 1420 Prepaid Insurance 1725 Computers, Cost [Subaccount of 1700] 1800 Furniture 1825 Furniture, Cost (Subaccount of 1800) 1850 Accum. Dep., Furniture (Subaccount of 1800 1900 1925 Software, Cost [Subaccount of 1900] 1950 Accum. Dep., Software [Subaccount of 1900] 2020 2030 4010 4020 4065 4070 4075 5065 5070 5075 5900 6085 6095 6300 6350 Software Notes Payable Interest Payable Web Page Design Fees Internet Consulting Fees Sale of Scanners Sale of HTML Software Sale of Desktop Pub. Software Cost of Scanners Sold Cost of HTML Software Sold Cost of Desktop Pub. Soft. Sold Inventory Adjustment Deprec. Exp., Furniture Deprec. Exp., Software Computer Supplies Expense Online Service Expense Cost of Goods Sold Cost of Goods Sold Expense Expense Expense se the information in Table OWs-Update Item List to update the tem List for items created as part of QuickBooks Desktop Setup. ABLE OWS odate Item List Asset Account COGS Account Item Name and Description Service Items (nontaxable Internet Web Page Design Services Inventory Part items (taxable) 4020 4010 1260 265 1270 1275 4060 4065 5060 5065 5070 5075 HTML Software Desktop Pub. Software 4075 After updating the Item List, you can delete the Inventory Asset account and Cost of Goods Sold account (the accounts with no numbers) Edit the Item List for the sales tax item created in the EasyStep Interview: Sales Tax Name 12. NY Sales Tax Tax Rate Tax Agenc Sales Tax 8% NYS Tax Dept. 13. Make three journal entries on August 1, 2019 (accept the default Entry Nos.): a. Enter the opening balances listed below. Enter the following accounts and amounts as debits: 1010 1300 1305 1410 1420 1725 1825 1925 3020 4100 5060 5065 5070 5075 5900 6050 6075 6085 6095 6100 Cash Operating Computer Supplies Office Supplies Prepaid Advertising Prepaid Insurance Computers, Cost Furniture, Cost Software, Cost Olivia Chen, Drawings Sales Discounts Cost of Computers Sold Cost of Scanners Sold Cost of HTML Software Sold Cost of Desktop Pub. Soft. Sold500.00 Inventory Adjustment Advertising Expense Deprec. Exp., Computers Deprec. Exp., Furniture Deprec. Exp., Software Insurance Expense $24,489.16 350.00 325.00 1,000.00 1,650.00 5,000.00 3,200.00 3,600.00 500.00 179.84 10,000.00 2,400.00 75.00 75.00 200.00 75.00 50.00 100.00 150.00 continues CHAPTER 6 1I New Company Setup-Detailed Start 250.00 50.00 150.00 Computer Supplies Expense Office Supplies Expense Online Service Expense Rent Expense Telephone Expense Utilities Expense Interest Expense 6300 125.00 25.00 Enter the following accounts and amounts as credits: Accum. Dep., Computers Accum. Dep., Furniture Accum. Dep., Software Notes Payable Interest Payable Web Page Design Fees Internet Consulting Fees Sale of Computers Sale of Scanners Sale of HTML Software Sale of Desktop Pub. Software S 75.00 50.00 100.00 2,500.00 25.00 9,750.00 6,600.00 20,000.00 4,800.00 150.00 1,000.00 1750 1850 1950 1010 4020 4060 b. Make a journal entry to reverse the Uncategorized Income account. C. Make a journal entry to reverse the Uncategorized Expenses account. 14. Display and print the following reports for August 1, 2019: a. Journal b. Trial Balance Profit & Loss Standand (06/01/2019-08/01/2019) d. c. Balance Sheet Standard e. Item Listing Customr Contact List g. Vendor Contac List Make a backup copy of the new company file. Use the name Owse Your Name] Olivia's Web Solutions. Restore the backup copy and change the company name to OWS6 /Your Namel Olivia's Web Solutions 15. CHAPTER 6 I New Company Setup-Detailed Start 265 Case Problem 6-2 On June 1,2019, Olivia Chen began her business, Olivia's Web Solutions In the first month of business, Olivia set up the otlice, provided web page design and Internet consulting services, and recorded month-end activi In July, the second month of business, Olivia began to purchase and sell inventory items of computer hardware and software. In June and July Olivia recorded the financial activities using a manual accounting On August 1, 2019, Olivia decides to switch her accounting method to QuickBooks. Olivia has organized the information about the company but has hired you to convert the accounting records to QuickBooks actinity 1. Use the information below to create the company file and record hod the information for the company using the Detailed Start met and the EasyStep Interview window. Where no specific information is given, accept the Easy Step Interview window default setting. CH6 Your Namel Olivia's Web Solutions Company Name Tax ID Address: 547 Miller Place Westport, NY 11858 Couniry Phone Fax: E-mail: 516-555-5000 516-555-6000 LIV@ ppi-edu.net General Product-hased Business Sole Proprictorship Industry: Fical Year Start Passasordi Save As Sell: Sales Tax Estimates: ca Solutions Botl Tracking Customer No No Yes Statements: Invoces: Progress Invoicing: Balls You Our Tracking Iwventory: Tracking Time Yes Yes No No 08/01/2019 Start Tracking Remove the check mark from each of the following accounts: Shipping and Delivery Income Freight and Shipping Costs Merchant Account Fees Product Samples Expense Purchases- Resale Items Automobile Expense Bank Service Charges CHAPTER& I New Company Setup-Detailed Start 259 Computer and Internet Expenses Dues and Subscriptions Meals and Entertainment Postage and Delivery Professional Fees Repairs and Maintenance Travel Expense Ask My Accountant Insert a check mark to the left of the following account: Sales Discounts 2. Use the information in Table OWS-Customers to create and update the Customer Center using the QuickBooks Desktop Setup window. Be sure to use the date August 1, 2019 TABLE OWS Customers City, State, Zip New Hyde Park, NY 11523 Freeport, NY 11634 Glen Cove, NY 11536 s 800.00 rte's Auto Repair Breathe Easy Long bland Water iget' RestaurantMigual Porez S16-565-3236 30 Wilis Ave Leon Artie Allen Scot Customer 516-555-1221 32 W. 11th Street 516-555-6868 558 Adiantic Ave. 516-555-4747 87-54 Bayview Ave Service Miquels Schneider Famly Sehorm & Smnsth Singh Famly South Shore School Joseph Porter 516- Roslhn, NY 11541 363 Farmers Rd. Syosset, NY 11547 516-555-8989 1,000.00 Jchnny Jerry Sehorn 212-555-333 5m Ave. David Singh 718-555-3233 3e3 Marathon Parkway 800.00 wrk NY 10022 Lise Neck, NY 11568 55-4545 3e08 Ocean 12,056.00 District South Beach, NY 11365 Thrity Stores William Way 718-555-2445 23 Boston Ave 718-565-2446 Bronx, NY 11693 1,500.00 3. Use the information in Table OWS-Vendors to create and update the Vendor Center using the Quick Books Desktop Setup window. Be sure to use the date August 1, 2019 TABLE OWS Vendors ARC Phone Avin R. Clinton 516-555-6363 668 Lakeville Ave. City, State, Zip Balance Garden City, NY 11678 201 E. 10th Street New York, NY 10012 Chris Chrbet 212-555-8777 $1,200.00 260 CHAPTER & 1 New continues Start TABLE Ows vendors.cont 700-555-6564 3831 Gate Greenboro, NC 27407 55 Broadway Room 55 New York: Eastern Muuai 212-555-6363 NY nterSoft Development Customer 1.700 Lewis Furmiture Co LI Power Company Martin Computer Manny Lewis 631-555 6161 1225 Route 110 516-555-8888 5444 Northern Ave 516-555-7777 366 N. Frankin St 974-555-7873 684 Mountain View Ad Garden City, NY 11568 1,600.00 Netsoft Development NYS Tax Dept Office Plus Olivia Chen 516-555-3214 45 Jericho Tpke 375.00 Service 617-555-8778 2554 Bedford Rd Boston, MA 02164 Systems Service Jerermy Jones 516-565-2525 36 Sunrise Lane 516-555-2526 615-555-4545 615-555-4546 Hempstead, NY 11004 877 Route 5 Ft. Lauderdale, FL 70089 Textpro Software, Inc. Customer Service 4. Use the information in Table is to update the Item List using the QuickBooks Deskto . Be sure to use the date August 1, 2019 TABLE OWS teins Item Name and Description Service Mems Hand Total $100 125 Web Page Design Services nvetory Part items 2,000 $1,000 10 $10,000 3,600 75 18 1,350 1,000 600 150 20010010 300 12 HTML Software Desktop Pub. Software rs feature. Use the following information s Activate the account numbe to customize the Chart of Accounts List Number Number 1700 Computers 15000 Furniture and 17000 Accumulated 30800 Owners Draw TABL Equipment Depreciation Sales Income 1750 Accum. Dep., Computers 9020 4060 1100 6050 Subaccount of 1700] Olivia Chen, Drawings Sale of Computers 48300 Sales Discounts 60000 Advertising and Advertising Expense Promotion 62400 Depreciation Expense 6075 Deprec. Exp., Computers 63300 Insurance Expense 63400 Interest Expense [Account Type: Other Expense] Office Supplies Expense 7000 6325 64900 Office Supplies 67100 Rent Expense 68100 Telephone Expense 6450 68600 Utilities 6500 Utilities Expense 6. Delete the following account: 47900 Sales Open and close the following windows to allow QuickBooks to create default accounts: 7. Create Invoices Enter Sales Receipts Enter Bills Item List: New Item: Inventory Pa 8. Customize the system default account Number Account Name_ 11000 Accounts Receivable 12000 Undeposited Funds 12100 Inventory Asset 20000 Accounts Payable 25500 Sales Tax Payable 1200 1250 1260 2010 Inventory of Computers 3000 Opening Balance Equity 3010 Olivia Chen, Capital 32000 Owners Equity 50000 *Cost of Goods Sold 060 Cost of Computers Sold 3030 Accumulated Earnings 9. Customize the payment Terms List to list only the following: 2/10, Net 30 Days Net 10 Days Net 15 Days Net 30 Days 282 CRAPTER& New Company Setup-Detailed Start Use the information in Table ows-New Accounts to update the Chart of Accounts List. 10. owS unts Number Account Name Account Type Bank Other Current Asset Other Current Asset Other Current Asset Other Current Asset Other Current Asset Other Current Asset Other Current Asset Fixed Asset Fixed Asset Fixed Asset Fixed Asset Fixed Asset Fixed Asset Fixed Asset Other Current Liability Other Current Liability Income Income Income Income Income Cost of Goods Sold 1010 Cash Operating 1265 Inventory of Scanners 1270 Inventory of HTML Software 1275 Inventory of Desktop Pub. Soft. 1300 Computer Supplies 1305 Office Supplies 1410 Prepaid Advertising 1420 Prepaid Insurance 1725 Computers, Cost [Subaccount of 1700] 1800 Furniture 1825 Furniture, Cost (Subaccount of 1800) 1850 Accum. Dep., Furniture (Subaccount of 1800 1900 1925 Software, Cost [Subaccount of 1900] 1950 Accum. Dep., Software [Subaccount of 1900] 2020 2030 4010 4020 4065 4070 4075 5065 5070 5075 5900 6085 6095 6300 6350 Software Notes Payable Interest Payable Web Page Design Fees Internet Consulting Fees Sale of Scanners Sale of HTML Software Sale of Desktop Pub. Software Cost of Scanners Sold Cost of HTML Software Sold Cost of Desktop Pub. Soft. Sold Inventory Adjustment Deprec. Exp., Furniture Deprec. Exp., Software Computer Supplies Expense Online Service Expense Cost of Goods Sold Cost of Goods Sold Expense Expense Expense se the information in Table OWs-Update Item List to update the tem List for items created as part of QuickBooks Desktop Setup. ABLE OWS odate Item List Asset Account COGS Account Item Name and Description Service Items (nontaxable Internet Web Page Design Services Inventory Part items (taxable) 4020 4010 1260 265 1270 1275 4060 4065 5060 5065 5070 5075 HTML Software Desktop Pub. Software 4075 After updating the Item List, you can delete the Inventory Asset account and Cost of Goods Sold account (the accounts with no numbers) Edit the Item List for the sales tax item created in the EasyStep Interview: Sales Tax Name 12. NY Sales Tax Tax Rate Tax Agenc Sales Tax 8% NYS Tax Dept. 13. Make three journal entries on August 1, 2019 (accept the default Entry Nos.): a. Enter the opening balances listed below. Enter the following accounts and amounts as debits: 1010 1300 1305 1410 1420 1725 1825 1925 3020 4100 5060 5065 5070 5075 5900 6050 6075 6085 6095 6100 Cash Operating Computer Supplies Office Supplies Prepaid Advertising Prepaid Insurance Computers, Cost Furniture, Cost Software, Cost Olivia Chen, Drawings Sales Discounts Cost of Computers Sold Cost of Scanners Sold Cost of HTML Software Sold Cost of Desktop Pub. Soft. Sold500.00 Inventory Adjustment Advertising Expense Deprec. Exp., Computers Deprec. Exp., Furniture Deprec. Exp., Software Insurance Expense $24,489.16 350.00 325.00 1,000.00 1,650.00 5,000.00 3,200.00 3,600.00 500.00 179.84 10,000.00 2,400.00 75.00 75.00 200.00 75.00 50.00 100.00 150.00 continues CHAPTER 6 1I New Company Setup-Detailed Start 250.00 50.00 150.00 Computer Supplies Expense Office Supplies Expense Online Service Expense Rent Expense Telephone Expense Utilities Expense Interest Expense 6300 125.00 25.00 Enter the following accounts and amounts as credits: Accum. Dep., Computers Accum. Dep., Furniture Accum. Dep., Software Notes Payable Interest Payable Web Page Design Fees Internet Consulting Fees Sale of Computers Sale of Scanners Sale of HTML Software Sale of Desktop Pub. Software S 75.00 50.00 100.00 2,500.00 25.00 9,750.00 6,600.00 20,000.00 4,800.00 150.00 1,000.00 1750 1850 1950 1010 4020 4060 b. Make a journal entry to reverse the Uncategorized Income account. C. Make a journal entry to reverse the Uncategorized Expenses account. 14. Display and print the following reports for August 1, 2019: a. Journal b. Trial Balance Profit & Loss Standand (06/01/2019-08/01/2019) d. c. Balance Sheet Standard e. Item Listing Customr Contact List g. Vendor Contac List Make a backup copy of the new company file. Use the name Owse Your Name] Olivia's Web Solutions. Restore the backup copy and change the company name to OWS6 /Your Namel Olivia's Web Solutions 15. CHAPTER 6 I New Company Setup-Detailed Start 265