Your company is a Sports Gym serving the Hollywood area in California. They sell month-to-month memberships to individuals and businesses as well as T-shirts, yoga pants, and other sports-related accessories. They began their business in 2020 and want to use QBO starting January 1, 2021. Beginning balances as of 12/31/2020 has been provided below.

Based on what you learned in the text using the Sample Company, you are to make the following changes to the company you created.

Create new accounts and related beginning balances where appropriate. (Click the Gear icon and then click Chart of Accounts.)

a. First account -

i) Account Type - Bank

ii) Detail Type - Checking

iii) Name - Checking

iv) Balance as of 12/31/2020 - $27,000

b. Second account -

i) Account Type - Accounts Receivable (A/R)

ii) Detail Type - Accounts Receivable (A/R)

iii) Name - Accounts Receivable (A/R)

iv) Balance as of 12/31/2020 - n/a

c. Third account -

i) Account Type - Other Current Assets

ii) Detail Type - Prepaid Expenses

iii) Name - Prepaid Expenses

iv) Balance as of 12/31/2020 - $12,000

d. Fourth and fifth accounts (Note: When entering a new fixed asset place a check in the Track depreciation of this asset check box to reveal Original cost and Depreciation text boxes. Enter both amounts from above as positive numbers.) -

i) Account Type - Fixed Asset

ii) Detail Type - Fixed Asset Furniture

iii) Name - Furniture

iv) Original cost - $65,000 as of 12/31/2020

v) Depreciation - $10,000 as of 12/31/2020

e. Sixth and seventh accounts (see note above) -

i) Account Type - Fixed Asset

ii) Detail Type - Machinery & Equipment

iii) Name - Machinery & Equipment

iv) Original cost - $115,000 as of 12/31/2020

v) Depreciation - $6,500 as of 12/31/2020

f. Eighth account -

i) Account Type - Accounts Payable (A/P)

ii) Detail Type - Accounts Payable (A/P)

iii) Name - Accounts Payable (A/P)

iv) Balance as of 12/31/2020 - n/a

g. Ninth account -

i) Account Type - Long-Term Liabilities

ii) Detail Type - Notes Payable

iii) Name - Notes Payable

iv) Balance as of 12/31/2020 - $82,000

h. Tenth account -

i) Account Type - Equity

ii) Detail Type - Common Stock

iii) Name - Common Stock

iv) Balance as of 12/31/2020 - $1,000

Answer rating: 100% (QA)

The detailed answer for the above question is provided below a First account i Account Type Bank ii Detail Type Checking iii Name Checking iv Balance as of 12312020 27000 To create this account go to ... View the full answer