Comprehensive Problem-Computerized Accounting

Comprehensive Problem
Computerized Accounting with QuickBooks® 2020
 
On January 1, 2022, Jen Beck started her business, Jen’s Tennis Courts, by signing a mortgage note for $40,000 at 5% interest for the purchase of tennis courts. At that time, she also purchased furniture and equipment. Jen began the business providing tennis court rental services and tennis lesson services. Eventually, she began selling tennis merchandise: clothing, racquets, and tennis balls. As business is growing, Jen needs someone to help her with the tennis services and sale of merchandise and has been interviewing potential assistants.
For the first six months of business, Jen manually recorded all her business transactions as they occurred. Not being familiar with accounting procedures, she did not record month-end accounting activity or prepare any financial statements. On July 1, 2022, Jen decided to convert the accounting records to QuickBooks. You have been retained to set up the accounting records in QuickBooks; record all monthly accounting activity for the month of July, including month-end activity; and print management reports, accounting reports, and financial statements as of the end of July 2022.
 

  1. To create the company file, use the Start Setup method presented in Chapter 7. At the QuickBooks Desktop Setup window, Let’s get started page, select the For someone else option and then click Start Setup. Use the information below to complete the setup of the company file:

 
Business Name:                                [Your Name] Jen’s Tennis Courts
Industry:                                              Other/None
Business Type:                                   Sole Proprietorship
Admin’s email:                                   Admin@ppi-edu.net
EIN:                                                        17-6158789
Phone:                                                  718-555-5360
Business Address:                             3205 Springfield Blvd.
Bayside, NY 11364
U.S.
 

  1. Use Admin as the user name and Student1 as the company file password.

 

  1. Activate the account numbers, inventory, and sales tax features. For sales tax, use the following information:

 
Type:                                                     Sales Tax Item
Sales Tax Name:                               NY Sales Tax
Description:                                        Sales Tax
Tax Rate (%):                                      8
Tax Agency:                                        NYS Dept. of Revenue
1 Washington Avenue
Albany, NY 12222
Main Phone:                                      518-555-1000
 
 

  1. Edit the current payment terms to reflect the terms presented below. All other payment terms created by QuickBooks can be deleted:

 
2/10, Net 30 Days
Net 15 Days
Net 30 Days
 

  1. Allow the software to create system default accounts by opening and closing the following windows: Create Invoices, Enter Sales Receipts, Enter Bills, and Item List – New Item – Inventory Part.

 

  1. Using the Chart of Accounts List window, customize the following accounts by modifying the account numbers and names as shown. Leave any other account created by QuickBooks as is.

 
Account created by QuickBooks                 Change to
11000   Accounts Receivable                        1200     Accounts Receivable
12000   Undeposited Funds                         1250     Undeposited Funds
12100   Inventory Asset                                 1230     Inventory of Tennis Racquets
20000   Accounts Payable                             2010     Accounts Payable
25500   Sales Tax Payable                             2030     Sales Tax Payable
30000   Opening Balance Equity                 3010     Jen Beck, Capital
30800   Owners Draw                                     3020     Jen Beck, Drawings
32000   Owners Equity                                   3030     Accumulated Earnings
50000   Cost of Goods Sold                           5030     Cost of Tennis Racquets Sold
 

  1. Edit the company preferences to turn off both date warnings (Edit/Preferences/Accounting/Company Preferences).

 

  1. Use the following information to update the Chart of Accounts List for accounts not already created and customized. (See Figure 7–Q, p. 286, for examples of account types.)

 
Note: Some of the accounts listed below have already been created and customized. They are listed here again to display the balances. Do not enter the balances at this time as you will enter them in Step 12 below. Also, do not delete any accounts that were previously created.
 

Number Name Balances
Debit Credit
1010 Cash – Operating $13,148.00  
1235 Inventory of Tennis Clothes    
1240 Inventory of Tennis Balls    
1300 Prepaid Insurance    
1350 Prepaid Advertising    
1400 Office Supplies    
1700 Tennis Courts    
1725 Tennis Courts, Cost
(subaccount of 1700)
50,000.00  
1750 Tennis Courts, Accum. Deprec.
(subaccount of 1700)
   
1800 Furniture    
1825 Furniture, Cost
(subaccount of 1800)
8,000.00  
1850 Furniture, Accum. Deprec.
(subaccount of 1800)
   
1900 Equipment    
1925 Equipment, Cost
(subaccount of 1900)
5,000.00  
1950 Equipment, Accum. Deprec.
(subaccount of 1900)
   
2025 Mortgage Payable (Long Term Liability)   38,434.00
3020 Jen Beck, Drawings 26,000.00  
4010 Tennis Court Fees Earned   24,900.00
4020 Tennis Lessons Fees Earned   14,250.00
4030 Sale of Tennis Racquets   3,000.00
4035 Sale of Tennis Clothes   1,600.00
4040 Sale of Tennis Balls   300.00
4100 Sales Discounts 42.00  
5030 Cost of Tennis Racquets Sold 1,500.00  
5035 Cost of Tennis Clothes Sold 800.00  
5040 Cost of Tennis Balls Sold 150.00  
5900 Inventory Adjustment    
6050 Accounting Expense    
6100 Advertising Expense 900.00  
6150 Bank Service Charges Expense    
6270 Deprec. Exp., Tennis Courts    
6280 Deprec. Exp., Furniture    
6290 Deprec. Exp., Equipment    
6300 Insurance Expense 1,200.00  
6350 Office Supplies Expense 500.00  
6400 Telephone Expense 360.00  
6450 Utilities Expense 600.00  
7025 Interest Income (Other Income)    
7050 Interest Expense (Other Expense) 984.00  

 

  1. Use the information below to update the Item List. Only inventory parts are taxable. For the inventory part items, be sure to use the date July 1, 2022.

 

Item Type Item Name and Description/Account # Rate/Sales Price Cost Qty on Hand
Non-taxable:
Service Tennis Court Fees/4010  $ 30    
Service Tennis Lessons Fees – Owner/4020 25    
Taxable:
Inventory Part Tennis Racquets/1230, 4030, 5030 100 $ 50   20
Inventory Part Tennis Clothes/1235, 4035, 5035 80 40 30
Inventory Part Tennis Balls/1240, 4040, 5040 4 2 25

 

  1. Use the following information to update the Customer Center. Use the date July 1, 2022, for customers with an opening balance.

 

Customer/Company Name Opening
Balance
First and
Last Name
Main Phone Invoice/Bill To Payment
Terms
Bayside Youth Group $1,800 Diane Rand 718-555-4545 4545 Bell Blvd.
Bayside, NY 11364
2/10, Net
30 Days
Cheung Family     718-555-9725 444 Barrows Ct.
Little Neck, NY 11362
2/10, Net
30 Days
Davis Family     718-555-4405 158 Stone Street
Bayside, NY 11364
Net 30 Days
Grisham Family     516-555-3474 798 Langston Street
Glen Oaks, NY 11004
2/10, Net
30 Days
Lakeland Community Group 300 Amy James 718-555-5200 3802 221st Street
Bay Terrace, NY 11360
Net 30 Days
Whitestone Seniors Club 180 Joe Barley 718-555-3333 217 Locke Ave.
Whitestone, NY 11357
Net 30 Days

 

  1. Use the information below to update the Vendor Center. Use the date July 1, 2022, for vendors with an opening balance.

 

Vendor/Company Name Opening
Balance
First and
Last Name
Main Phone Billed From Payment
Terms
AGI Telephone Co. $ 130   718-555-5555 15 Main Street
Flushing, NY 11354
Net 30 Days
Daly’s Mortgage Corp.     718-555-7500 1800 Springfield Blvd.
Bayside, NY 11364
Net 30 Days
General Insurance Co.   Suzy Auria 516-555-9500 1350 Jericho Tpke.
Jericho, NY 11753
Net 30 Days
Jen Beck          
Local Power Company     718-555-1900 222 Main Street
Flushing, NY 11354
Net 30 Days
Office Supply Store     718-555-9275 111 Bell Blvd.
Bayside, NY 11364
Net 30 Days
Racquets, Inc. 500 Dillon Van 631-555-7575 75 Hauppauge Road
Hauppauge, NY 11788
Net 30 Days
Ray Vill Advertising Agency   Ray Vill 212-555-4000 705 Park Ave.
New York, NY 10016
Net 30 Days
Sporting Goods, Inc.     631-555-2525 25 Hauppauge Road
Hauppauge, NY 11788
Net 30 Days
Tennis Suits, Inc. 600   631-555-1234 100 Broad Hollow Rd.
Melville, NY 11747
Net 30 Days
United States Treasury          

 
 
 
 

  1. To complete the New Company Setup, record the following three journal entries on July 1, 2022:
  2. Enter the opening balances (refer to Step 8 above). Also, when entering the opening balances, enter $26,700 as a credit to 3010, Jen Beck, Capital. Use Opening Bal as the Entry No.
  3. Make a journal entry to reverse the Uncategorized Income account. Use Reversing as the Entry No.
  4. Make a journal entry to reverse the Uncategorized Expenses account. Use Reversing as the Entry No.

 
Note: After you reverse the Uncategorized Income and Uncategorized Expenses accounts, you can make these accounts inactive in the Chart of Accounts List.
 

  1. Display and print the following reports for July 1, 2022.
  2. Journal
  3. Trial Balance

 

  1. Jen informs you that she has hired an assistant, Dave Saylor.
  2. Activate the payroll feature, and then customize the payroll system default accounts below.

 
Account created by QuickBooks                                 Change to
24000       Payroll Liabilities                                            2100     Payroll Liabilities
66000       Payroll Expenses                                           6560     Payroll Expenses
 

  1. Create the following new general ledger accounts.

 
Other Current Liability, Subaccount of 2100 Payroll Liabilities:
2110         Social Sec/Medicare Tax Payable
2115         FIT Payable
2120         SIT Payable
2125         FUTA Payable
2130         SUI Payable
2135         SDI Payable
 
Expense, Subaccount of 6560 Payroll Expenses:
6565         Wages Expense
6610         Social Sec/Medicare Tax Expense
6625         FUTA Expense
6630         SUI Expense
6635         SDI Expense
 

  1. Choose the manual payroll calculations option to activate the Payroll Item List. Then edit the following payroll items on the Payroll Item List:

Payroll Item
Federal Unemployment
Federal Withholding
Medicare Company
Medicare Employee
Social Security Company
Social Security Employee
 
For each payroll item, do the following:

  • accept the name listed
  • choose the United States Treasury as the agency to which the liability will be paid
  • select the appropriate subaccounts for both the liability and expense accounts
  • accept all tax rates
  • accept all taxable compensation defaults

 

  1. Add the following to the Payroll Item List:

 
Type:                                                                 Wage (Hourly Wages)
Subtype:                                                          Hourly Wages
Name:                                                              Hourly Wages
Expense account:                                         6565 – Wages Expense
 
Type:                                                                 State Tax (State Withholding)
Name:                                                              NY – Withholding
Agency for Liabilities:                                  NYS Dept. of Revenue
Identifying number:                                     17-6158789
Liability account:                                          2120 – SIT Payable
Taxable compensation:                              Accept defaults
 
Type:                                                                 State Tax (SDI) – State Disability
Name:                                                              NY – Disability Company/NY – Disability Employee
Agency for Liabilities:                                  NYS Dept. of Revenue
Identifying number:                                     17-6158789
Liability account:                                          2135 – SDI Payable
Expense account:                                         6635 – SDI Expense
Company rate:                                              0%
Employee rate:                                              0.5%
Taxable compensation:                              Accept defaults
 
Type:                                                                 State Tax (SUI) – State Unemployment
Name:                                                              NY – Unemployment Company
Agency for Liabilities:                                  NYS Dept. of Revenue
Identifying number:                                     ER – 158789
Liability account:                                          2130 SUI – Payable
Expense account:                                         6630 SUI – Expense
Company Tax Rate:                                     4.025% each quarter
Taxable compensation:                              Accept defaults
 

  1. Add Dave Saylor to the Employee Center:

 
Legal Name:                                                         Dave Saylor
Social Security No:                                              137-29-2817
Gender:                                                                  Male
Date of Birth:                                                       05/13/1998
Marital Status:                                                    Single
Address:                                                                 1 Marine Way, New Hyde Park, NY 11040
Mobile:                                                                   516-555-0331
Pay Frequency:                                                   Biweekly
Earnings – Item Name:                                     Hourly Wages
Hourly/Annual Rate:                                         10.00
Federal Filing Status:                                        Single
Allowances:                                                          1
State Worked:                                                     NY
Tax:                                                                          SUI (Company Paid)
Tax:                                                                          SDI
State Subject to Withholding:                        NY
Filing Status:                                                        Single
Allowances:                                                          1
Other Taxes:                                                         No (delete all)
 

  1. The following activity occurred during the month of July 2022. Set up or create additional preferences and files when needed and record the following transactions in the appropriate windows.

 
Jul  2          Received a six-month insurance policy renewal from General Insurance Co. for $1,200, paid immediately, Check No. 72. Jen recorded the first six-month policy as Insurance Expense, but you think it is better to record the second six-month policy as Prepaid Insurance on payment, and then adjust it at the end of each month.
Jul  2          Received a six-month advertising renewal from Ray Vill Advertising Agency for $900, paid immediately, Check No. 73. Jen also recorded the previous advertising as Advertising Expense, but like the insurance policy, you will record it as Prepaid Advertising on payment and then adjust it at the end of each month.
Jul  2          Recommended to the owner, Jen Beck, that she put some of the cash into a Money Market account that will earn interest. Jen agrees. Create the general ledger account 1030 Money Market and transfer $7,000 into the account.
Jul  3          Purchased $500 of office supplies on account from the Office Supply Store, Invoice No. 285, Net 30 Days. Jen previously recorded this type of purchase as Supplies Expense, but you record it in the asset account Office Supplies.
Jul  3          Purchased 25 cans of tennis balls from Sporting Goods, Inc., at $2 per can, paid immediately, Check No. 74.
Jul  4          Provided 2 hours of tennis lessons (owner) at $25 each and 2 hours of tennis court services at $30 each on account to the Davis Family, Invoice No. 1150, Net 30 Days.
Jul  5          Sold 4 tennis racquets for $100 each and 4 tennis outfits for $80 each on account to the Grisham Family, Invoice No. 1151, 2/10, Net 30 Days.
Jul  5          Received full payment from Whitestone Seniors Club, Check No. 1587.
Jul  5          Paid in full AGI Telephone Co., Check No. 75.
Jul  6          Recorded the cash sales for the week for 15 hours of tennis lessons (owner) at $25 each, 32 hours of tennis court services at $30 each, and 15 cans of tennis balls at $4 each, Sale No. 551.
Jul  9          Received the telephone bill from AGI Telephone Co., Invoice No. 809, $150, Net 30 Days.
Jul  9          Received payment in full net of discount from Bayside Youth Group, Check No. 11725. Use the Discounts and Credits button to apply the discount. If the Discount and Credits button is not displayed, open the Create Invoices window, go to the Bayside Youth Group Invoice, and enter 2/10, Net 30 Days in the TERMS field.
Jul  9          Paid in full Racquets, Inc., Check No. 76.
Jul  9          Paid in full Tennis Suits, Inc., Check No. 77.
Jul 11        Provided 2 hours of tennis lessons (owner) at $25 each and 2 hours of tennis court services at $30 each on account to the Davis Family, Invoice No. 1152, Net 30 Days.
Jul 12        Received full payment from Lakeland Community Group, Check No. 6952.
Jul 12        Purchased 7 tennis racquets at $50 each on account from Racquets, Inc., Invoice No. TR712.
Jul 12        Purchased 5 tennis outfits at $40 each on account from Tennis Suits, Inc., Invoice No. TO1478.
Jul 12        Received full payment net of discount from the Grisham Family for Invoice No. 1151, Check No. 708. Use the Discount and Credits button to apply the discount.
Jul 13        Received a credit memo for 2 tennis racquets at $50 each returned on account to Racquets, Inc., Invoice No. CM-TR712.
Jul 13        Provided 10 hours of tennis court services at $30 each on account to the Lakeland Community Group, Invoice No. 1153, Net 30 Days.
Jul 13        Provided 6 hours of tennis court services at $30 each on account to the Whitestone Seniors Club, Invoice No. 1154, Net 30 Days.
Jul 13        Sold 10 tennis racquets at $100 each and 10 tennis outfits at $80 each on account to Bayside Youth Group, Invoice No. 1155, terms 2/10, Net 30 Days.
Jul 13        Recorded the cash sales for the week for 14 hours of tennis lessons (owner) at $25 each, 37 hours of tennis court services at $30 each, 15 cans of tennis balls at $4 each, and 4 tennis racquets at $100 each, Sale No. 552.
Jul 13        Created account 1020 Cash – Payroll account. Transferred $1,800 from the Cash – Operating account to the Cash – Payroll account.
Jul 13        Created the paycheck for Dave Saylor for his first two weeks working at Jen’s Tennis Courts, pay period ending July 11, 2022. Recorded the following paycheck details (if you receive messages about additional taxes, click X and Yes to close each message):
 
Pay Period Ends:                                                                     July 11, 2022
Check Date:                                                                              July 13, 2022
Bank Account:                                                                         1020 Cash – Payroll
Check Number:                                                                       101
 
Hours:                                                                                         80
 
Company Summary:
Social Security Company:                                                49.60
Medicare Company:                                                          11.60
Federal Unemployment:                                                  4.80
NY – Disability Company:                                                0
NY – Unemployment:                                                        32.20
 
Employee Summary:
Federal Withholding:                                                        52.00
Social Security Employee:                                                49.60
Medicare Employee:                                                         11.60
NY Withholding:                                                                 40.00
NY Disability – Employee:                                                1.20
 
Jul  13       Deposited all cash receipts and checks for the first half of the month of July.
Jul  13       The owner, Jen Beck, withdrew $2,000 cash for personal use, Check No. 78. Memorize the transaction for payments every two weeks. Next payment is July 27, 2022.
Jul  14       Purchased 25 cans of tennis balls at $2 each from Sporting Goods, Inc., paid immediately, Check No. 79.
Jul  14       Received full payment from the Davis Family for Invoice No. 1150 and Invoice No. 1152, Check No. 555.
Jul  14       Jen was awarded the contract to provide tennis lessons to the Springfield Gardens Teen Club. There will be three levels: beginner, intermediate, and advanced. They will be provided 30 hours a week in lessons. Jen will provide 10 hours of lessons and Dave will provide 20 hours of lessons. You decide to use time tracking for this contract.

  1. Enable the Time-Tracking feature and choose Tuesday as the first day of the workweek.

 

  1. Add the New Customer:

 
Customer Name/
Company Name:                      Springfield Gardens Teen Club
Full Name:                                  Erica Baynes
Main Phone:                              718-555-1140
Invoice/Bill To:                           150 Westgate St.
                                                        Springfield Gardens, NY 11413
Payment Terms:                       Net 30 Days
 

  1. Add the following three jobs to Springfield Gardens Teen Club:

 
Job Name:                                   Beginner Level
Intermediate Level
Advanced Level
 
Job Info:                                       (for all three jobs)
Job Description:                    To provide tennis instructions based on level.
Job Status:                              Awarded
Start Date:                              07/12/22
Projected End:                       07/26/22
 

  1. On the Item List, add a new item:

 
Type:                                             Service
Item Name/Number:              Tennis Lessons Fees – Assistant
Description:                                Tennis Lessons Fees – Assistant
Rate:                                             $20 per hour
Tax Code:                                    Non-Taxable Sales
Account:                                      4020 Tennis Lessons Fees Earned
 
Jul  18       Provided 2 hours of tennis lessons (owner) at $25 each and 2 hours of tennis court service at $30 each on account to the Davis Family, Invoice No. 1156, Net 30 Days.
Jul 18        Received full payment from Whitestone Seniors Club for Invoice No. 1154, Check No. 1597.
Jul 19        Received the utilities bill from Local Power Company and paid it immediately, Check No. 80, $200
Jul  20       Recorded the cash sales for the week for 16 hours of tennis lessons (owner) at $25 each, 39 hours of tennis court services at $30 each, 15 cans of tennis balls at $4 each, 2 tennis racquets at $100 each, and 2 tennis outfits at $80 each, Sale No. 553.
Jul  20       Recorded hours for tennis lessons on the weekly timesheet for the Springfield Gardens Teen Club for the first week as follows:
 

For Jen Beck (owner): Tue
7/12
Wed
7/13
Thu
7/14
Fri
7/15
Sat
7/16
Beginner Level   2      
Intermediate Level     2   2
Advanced Level 2     2  

                   

For Dave Saylor (assistant): Tue
7/12
Wed
7/13
Thu
7/14
Fri
7/15
Sat
7/16
Beginner Level 2   2 2 2
Intermediate Level 2 2   2  
Advanced Level   2 2   2

 
Jul 22        Received full payment net of discount from Bayside Youth Group, Invoice No. 1155, Check No. 11775.
Jul 22        Purchased 5 tennis racquets at $50 each on account from Racquets, Inc., Invoice No. TR722.
Jul 25        Provided 2 hours of tennis lessons (owner) at $25 each and 2 hours of tennis court services at $30 each on account to the Davis Family, Invoice No. 1157, Net 30 Days.
Jul 25        Received full payment from Lakeland Community Group, Invoice No. 1153, Check No. 6965.
Jul 27        Provided 10 hours of tennis court services at $30 each on account to the Lakeland Community Group, Invoice No. 1158, Net 30 Days.
Jul 27        Provided 6 hours of tennis court services at $30 each on account to the Whitestone Seniors Club, Invoice No. 1159, Net 30 Days.
Jul 27        Sold 2 tennis racquets at $100 each and 2 tennis outfits at $80 each on account to the Cheung Family, Invoice No. 1160, 2/10, Net 30 Days.
Jul 27        Recorded the cash sales for the week for 18 hours of tennis lessons (owner) at $25 each, 40 hours of tennis court services at $30 each, 15 cans of tennis balls at $4 each, and 2 tennis outfits at $80 each, Sale No. 554.
Jul 27        Recorded the tennis lessons hours on the weekly timesheet for the Springfield Gardens Teen Club for the second week as follows:
 

For Jen Beck (owner): Tue
7/19
Wed
7/20
Thu
7/21
Fri
7/22
Sat
7/23
Beginner Level     2    
Intermediate Level 2     2  
Advanced Level   2     2

 

For Dave Saylor (assistant): Tue
7/19
Wed
7/20
Thu
7/21
Fri
7/22
Sat
7/23
Beginner Level 2 2     2
Intermediate Level   2 2 2 2
Advanced Level 2   2 2  

 
Jul 27        Created three invoices for the Springfield Gardens Teen Club: Beginner Level, Invoice No. 1161; Intermediate Level, Invoice No. 1162; and Advanced Level, Invoice No. 1163; for the period July 12, 2022–July 23, 2022, Net 30 Days. (Remove the checkmark next to Email Later, if necessary.)
Jul 27        Created the paycheck for Dave Saylor for the pay period ending July 25, 2022. Dave worked a total of 80 hours of which 40 hours were at the Springfield Gardens Teen Club (those hours will flow into the payroll from the timesheet) and 40 were at Jen’s Tennis Courts (those 40 hours you must enter in the Preview Paycheck window). The paycheck details are as follows:
 
Pay Period Ends:                                                                   July 25, 2022
Check Date:                                                                            July 27, 2022
Bank Account:                                                                       1020 Cash – Payroll
Check Number:                                                                     102
 
Hours:                                                                                       80
 
Company Summary:
Social Security Company:                                              49.60
Medicare Company:                                                        11.60
Federal Unemployment:                                                4.80
NY – Disability Company:                                              0
NY – Unemployment:                                                      32.20
 
Employee Summary:
Federal Withholding:                                                      52.00
Social Security Employee:                                              49.60
Medicare Employee:                                                       11.60
NY Withholding:                                                               40.00
NY Disability – Employee:                                              1.20
 
Jul 27        Paid the payroll liabilities owed to the United States Treasury for the period July 1–27, 2022, Check No. 103. Use 1020 Cash – Payroll.
Jul 27        Received the bill for the monthly mortgage payment of $425 from Daly’s Mortgage Corp., paid immediately, Check No. 81. Record $265 as a reduction of the Mortgage Payable, and $160 as Interest Expense. Memorize the transaction for monthly payments. Next payment is August 27, 2022.
Jul 27        The owner, Jen Beck, withdrew $2,000 cash for personal use, Check No. 82. Recall the memorized transaction.
Jul 30        Recorded interest income earned on the Money Market account, $12. (Use the Make General Journal Entries window, ENTRY NO. Int Income; this is not an adjusting entry.)
Jul 30        Paid Office Supply Store, Invoice No. 285, Check No. 83.
Jul 30         Paid Racquets, Inc., Invoice No. TR712 and Invoice No. CM-TR712,
Check No. 84.
Note: In the Pay Bills window, after selecting Racquets, Inc., Ref. No. TR712, click the Set Credits button to select the $100 CM-TR712, and then click Done.
Jul 31        Paid all sales tax owed to NYS Dept. of Revenue for the month, Check No. 85.
Jul 31        Deposited all cash receipts and checks for the second half of the month of July.
Jul 31        Transferred $5,000 from the Cash – Operating account to the Money Market account.
Jul 31        You submitted your bill to Jen’s Tennis Courts for the following services rendered: 1) set up the accounting records in QuickBooks; 2) recorded the transactions for the month of July, including month-end activity; and 3) printed the management reports, accounting reports, and financial statements through July 31, 2022. You charged $2,000 for services rendered, Invoice No. JTC0731. Create your vendor account, [Your Name] Accounting Services, Net 30 Days, in Jen’s Tennis Courts accounting records and then record the bill.
 

  1. Prepare the bank reconciliation for the Cash – Operating account.
  2. The balance on the bank statement as of July 31, 2022 was $3,394.92.
  3. There was a service charge of $15.00.
  4. Check Nos. 83, 84, and 85 were outstanding.
  5. A check for $762.05 from the Grisham Family included in the July 13, 2022 deposit bounced. Create an NSF item on the Item List using the information below and then record the NSF item:

 
Type:                                             Other Charge
Item Name/Number:              NSF
Description:                                Non-sufficient funds
Tax Code:                                    Non-Taxable Sales
Account:                                      1010 Cash – Operating
 

  1. Print the Bank Reconciliation Detail report.

 

  1. Display and print the following reports for July 1, 2022–July 31, 2022:
  2. Journal
  3. Trial Balance (before adjustments)

 

  1. Record the following adjusting journal entries for July 31, 2022. Number the adjusting journal entries AJE1, AJE2, and so on:
  2. Record one month of insurance expense.
  3. Record one month of advertising expense.
  4. Office supplies on hand totaled $420.
  5. Depreciation for the Tennis Courts for the seven months ending July 31 is $1,500.
  6. Depreciation for the Furniture for the seven months ending July 31 is $450.
  7. Depreciation for the Equipment for the seven months ending July 31 is $600.
  8. A review of the inventory reveals that two tennis outfits were damaged and needed to be discarded. Adjust the inventory account. Use Inv Adj as the reference.

 

  1. Save and submit the following reports for July 1, 2022–July 31, 2022 (make sure they are each labeled):
  2. Customer Balance Detail
  3. Vendor Balance Detail
  4. Inventory Valuation Detail
  5. Payroll Transaction Detail
  6. Profit & Loss by Job. Filter the report by Name, then choose Springfield Gardens Teen Club.
  7. Journal (July 31, 2022) Filter the report, using Transaction Type and Multiple Transaction Types, to display only the adjusting journal entries (Journal) and the inventory adjustment (Inventory Adjustment).
  8. Adjusted Trial Balance
  9. Profit & Loss Standard (January 1, 2022–July 31, 2022)
  10. Balance Sheet Standard (July 31, 2022)

 

  1. Make a backup copy of the company file on a removable storage device and store it in a safe place.

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