ACCRUING EXPENSES: in QuickBooks Accountant 2015

Restore the file Boston Catering Ch 9 (Backup) that you downloaded from the text web site. 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 expense (a new other expense type account) and the related accrued expense liability as of 7/31/10 and 8/31/10 based on the following schedules (note that on 8/2/10 the company made the July payments of $926.29 and 610.32:

Month Payment Interest Principal Balance

$50,000.00

Jul 2010 $926.29 $416.67 $509.63 $49,490.37

Aug 2010 $926.29 $412.42 $513.87 $48.976.50

Sep 2010 $926.29 $408.14 $518.15 $48,458.35

Month Payment Interest Principal Balance

$25,000.00

Jul 2010 $610.32 $166.67 $443.66 $24,556.34

Aug 2010 $610.32 $163.71 $446.61 $24,109.73

Sep 2010 $610.32 $160.73 $449.59 $23,660.14

Month Payment Interest Principal Balance

$10,000

Jul 2010 $0 $50.00 $0 $10,000

Aug 2010 $0 $50.00 $0 $10,000

Sep 2010 $0 $50.00 $0 $10,000

b. Reverse accrued interest expense for the first two loans on 8/1/10 and 9/1/10 as appropriate. Do not reverse accrued interest expense on the $10,000 loan.