Sebastian Young played quarterback for the Los Angeles Raiders for the 12 years of his professional football career. As a team leader, Sebastian guided his team to three Super Bowl victories and earned the respect of his teammates, the coaching staff, the press, and fans across the country. Now retired, Sebastian is a guest commentator for a variety of sports talk shows on radio and television. He recently formed a sole proprietorship called Forever Young to promote himself as a motivational speaker to large corporations and organizations. He has hired Cory Walsh to promote and coordinate his appearances and Anne Sunshine to manage the office. Sebastian has contacted some vendors and customers and is about to embark on a new business adventure. He has asked you to set up an accounting system for the business and has given you the following information:
Company Information • Company and legal name: Forever Young • Tax ID: 94-9723900 • Address: 100 Westwood Blvd., Los Angeles, CA 90024 • Phone: 310-555-2324 • Industry: Professional Consulting • Company Organization: Sole Proprietor • Fiscal year starts: January 2015 • Services only, no sales tax, with estimates, with sales receipts and statements, no progress invoicing, keep track of bills you owe, print checks, accept credit and debit cards, keep track of time, has W-2 employees, use 1/1/15 as the first day of the quarter • Existing bank account: Washington Mutual, bank account name: ‘‘Checking,’’
account number: 390093912, opened 1/1/15 • Income and expense accounts: accept recommended accounts Preferences • Accounting: Use accounts but do not require account numbers.
• Checking: Use the checking account as the default to write checks, pay bills, pay sales tax, and make deposits.
• Desktop View: Use multiple windows and show home page when opening a company file.
• General: Check the Pressing Enter moves between fields check box in addition to the default settings. Uncheck the Always show years as 4 digits check box.
Item Information • Type: Service, Number: 001, Description: Full-Day Seminar, Rate: \($10,000,\) Consulting Income • Type: Service, Number: 002, Description: Half-Day Seminar, Rate: \($6,000,\) Consulting Income • Type: Service, Number: 003, Description: One-Hour Presentation, Rate: \($2,000,\) Consulting Income Customer Information • Customer Name: Levi, Company Name: Levi Strauss, Address: 100 Market St., San Francisco, CA 94099, Terms: Net 30, Credit limit: \($25,000\) • Customer Name: Boeing, Company Name: Boeing Aerospace, Address:
139 Boeing Park Dr., El Segundo, CA 90233, Terms: Net 30, Credit limit:
\($25,000\) Vendor Information • Vendor Name: Fleet, Company Name: Fleet Promotions, Address: 3099 Wilshire Blvd. #300, Los Angeles, CA 90024, Terms: Net 30, Credit limit:
\($50,000\) • Vendor Name: Galas, Company Name: Galas & Associates, Address: 37321 Santa Monica Blvd. #100, Los Angeles, CA 90024, Terms: Net 30, Credit limit: \($50,000\) Account Information • Checking account (already created)
• Accounts receivable (not yet created)
Payroll and Employee Information • Payroll is calculated manually.
• Employee Name: Cory Walsh, Social Security number: 339-09-7466, Gender:
Male, Address: 399 Sunset Blvd., Bel Air, CA 90033, Payroll Item: Officer Salary, which represents a regular annual salary of \($80,000\) recorded to the Payroll Expenses account and paid semimonthly, Filing Status: Single, Hire Date: 1/1/15.
• Employee Name: Anne Sunshine, Social Security number: 232-38-0098, Gender:
Female, Address: 2983 Olympic Blvd., Los Angeles, CA 90032, Payroll Item: Staff Hourly, which represents a regular hourly salary of \($20\) per hour recorded to the Payroll Expense account and paid semimonthly, Filing Status:
Single, Hire Date: 1/1/15.
• State: California, State Tax, Unemployment, and State Disability Vendor:
Franchise Tax Board, ID number: 930808, Liability Account: Payroll Liabilities, California Unemployment Tax Rate: 3.4%, California Disability Tax Rate: 1.1%, all employees are subject to the California Training Tax.
The California wage plan code for all employees is U (Voluntary DI, State UI Plan). Payroll taxes are paid quarterly.
Requirements:
Use the EasyStep Interview to create Forever Young’s QuickBooks Accountant file and then print the following reports as of 1/1/15 without a Subtitle, Date Prepared, or Time Prepared reference. Place your name in the Extra Footer Line and print with a Landscape orientation. (Be sure to keep this QuickBooks Accountant file in a safe place; it will be used as a starting file for this case in Chapter 7.)
1 Customer Contact List 2 Vendor Contact List 3 Employee Contact List 4 Item List