Chapter 7 Case 1

FOREVER YOUNG

In Chapter 6, you created a new QuickBooks Accountant file for Forever Young. Make a copy of that file, and use that copy to enter the following transactions:

Event # Date Business Event

1 1/2/15 Sebastian deposited $20,000 into his new companys checking account as his initial investment.

2 1/3/15 Paid Galas $6,000 in legal fees for setting up contracts with future customers (classify as Professional Fees Expense) using Check No. 1.

3 1/3/15 Signed a contract with Panasonic (new customer with terms due on receipt) to speak at its sales convention (half-day seminar) on 1/5/15. Collected a 50% deposit of $3,000 and immediately deposited this Check No. 9873 into the checking account.

4 1/4/15 Paid Office Depot (a new vendor) $4,000 for furniture using Check No. 2.

5 1/4/15 Paid Classic Leasing (a new vendor) $8,000 rent on office space using Check No. 3. (Half of payment represents January rent and half represents a security deposit.) (Hint:Create a new other asset account, named Security Deposit Asset.)

6 1/5/15 Spoke at the Panasonic sales convention, received remaining amount owed, provided invoice 501 to customer (billing them for services rendered), and applied

previous credit.

7 1/7/15 Received and deposited Panasonic Check No. 9898 for $3,000 into checking account as final payment for services rendered.

8 1/9/15 Signed a contract with Gateway (new customer with terms due on receipt) to speak at its sales convention (full-day seminar) on 1/12/15. Collected a 50% deposit of $5,000 and immedi-ately deposited this Check No. 15487 into the checking account.

9 1/10/15 Purchased supplies (new other current asset type of account) from Office Depot for $1,500 using Check No. 4; the supplies will be used over the next six months

.10 1/11/15 Signed a contract with Adobe (new customer with terms due on receipt) to speak at its officers retreat (full-day seminar) on 1/19/15. Collected a 50% deposit of $5,000 and immediately deposited this Check No. 698747 into the checking account.

11 1/12/15 Spoke at the Gateway sales convention, received remaining amount owed, provided invoice 502 to customer (billing them for services rendered), and applied previous credit.

12 1/14/15 Received and deposited Gateway Check No. 15623 for $5,000 into checking account as final payment for services rendered

13 1/15/15 Paid semimonthly payroll starting with Check No. 5 for the period 1/1/15 to 1/15/15. Cory worked for salary during this period. Anne worked 23 hours during this period. Payroll tax information is shown in Table 7.6.

Item Cory Anne

Earnings 3,333.33 460.00

Federal Withholding 633.33 87.40

Social Security Employee 206.67 28.52

Medicare Employee 48.33 6.67

CA Income Tax 266.67 36.80

CA Disability 20.00 2.76

Check Amount 2,158.33 297.85

CA Employee Training Tax 3.33 0.46

Social Security Employer 206.67 28.52

Medicare Employer 48.33 6.67

Federal Unemployment 26.67 3.68

CA Unemployment 113.33 15.64

Requirements:

Print the following as of 1/15/15.

1 Profit & Loss Standard

2 Balance Sheet Standard

3 Statement of Cash Flows

4 Transaction List by Date