Restore the file Boston Catering. Do not use the file created in Exercise 1 of this chapter.

Make the following adjustments and then print an income statement and balance sheet for the period 7/1/10 through 9/30/10 setting the columns to Month so that you view an income statement for July, August, and September 2010 and a balance sheet as of 7/31/10, 8/31/10, and 9/30/10.

a. Accrue interest income (a new other income type account) as of 7/31/10 of \($11\) to the short-term investments account. Interest is paid at the end of every calendar quarter.

b. On 8/1/10, reverse the interest income accrual you made above.

c. Accrue interest income as of 8/31/10 of \($115\) to the short-term investments account.

d. On 9/1/10, reverse the interest income accrual you made above.

e. On 9/1/10, the company billed Fidelity Investments on invoice 1125 for a catering engagement held on 8/31/10 for 200 Fall Suppers (Item Code S300) resulting in \($13,000\) in catering sales and \($650\) in sales tax, which were billed on account (total \($13,650).\) Sales tax is paid to Mass. Dept. of Revenue. The food purchases of \($4,000\) were set up as accounts payable to US Food Service.
Accrue this revenue and expense as of 8/31/10.

f. On 9/1/10, reverse the revenue and expense accrual made above.

g. On 9/1/10, record the invoice described in (e) above.

h. On 9/1/10, record check 1512 to US Food Service for \($4,000\) in food purchases.