CHAPTER 7-GENERAL ACCOUNTING AND END-OF-PERIOD PROCEDURES 525 END-OF-CHAPTER PROBLEM YOUR NAME RESORT CLOTHING Chapter 7 continues with the end-of-period adjustments, bank and credit card reconciliations, archive disks, and closing the period for Your Name Resort Clothing The company does use a certified public accountant for guidance and assistance with appropriate accounting procedures. The CPA has provided information for Karen to use for adjusting entries, etc Continue to use the copy of Your Name Resort Clothing you used in the previous chapters. Open the company-the file used is Clothing.qbw. Record the adjustments and other transactions as you were instructed in the chapter. Always read the transaction carefully and review the Chart of Accounts when selecting transaction accounts. Print the reports and journals as indicated. RECORD TRANSACTIONS January 31, 2010-Enter the following: Change the names and/or the account numbers of the following accounts. Make sure the account description is appropriate for the new account name. 0 260 Printing and Reproduction to 6260 Printing and Duplication /6350 Travel & Ent to 6350 Travel o 3010 Your Name & Olsen, Capital to 3100 Your Name & Olsen, Capital Remember to use just your last name. . Add the following accounts: Equity account 3110 Your Name, Capital (subaccount of 3100) 0 Equity account 3120 Karen Olsen, Capital (subaccount of 3100) Change the following accounts: 3011 Your Name, Investment to 3111 Your Name, Investment (subaccount of 3110) (Note: Since 3110 is a subaccount of 3100, you may not see the entire name of the subaccount listing. Cursor through the subaccount name to read it completely.) 3013 Your Name, Drawing to 3112 Your Name, Drawing (subaccount of 3110) 012 Karen Olsen, Investment to 3121 Karen Olsen, Investment (subaccount of 3120) QUICKBOOKS PRO 2010: A COMPLETE COURSE 526 3014 Karen Olsen, Drawing to 3122 Karen Olsen, Drawing (subaccount of 3120) Make the following accounts inactive: 6291 Building Repairs o 6351 Entertainment Delete the following accounts: 6182 Disability Insurance o 6213 Mortgage o 6823 Property Print an Account Listing in Landscape orientation (Do not show inactive accounts. Use the Report menu to print the Account Listing. Resize the columns to display the Account Names in full-including subaccounts-and to hide the columns for Description, and Tax Line.) Create a Fixed Asset Item List for e Office Equipment, New, Date is 12/31/09, Cost is $8,000, Account is 1510 Store Fixtures, New, Date is 12/31/09, Cost is $9,500, Account is 1520 Enter adjusting entries in the Journal and use the memo Adjusting Entry for the following: /Office Supplies Used, the amount used is S35 Sales Supplies Used, account balance (on hand) at the end of the month is $1,400 Record a compound entry for depreciation for the month: Office Equipment, $66.67 and Store Fixtures, $79.17 The amount of insurance remaining in the Prepaid Insurance account is for si months of liability insurance. Record the liability insurance expense for the month Each owner withdrew $500. (Memo: Withdrawal for January) Print Check Nos. 7 and 8 for the owners' withdrawals. Prepare Bank Reconciliation and Enter Adjustments for the Reconciliation: the chapter for appropriate Memo notations) Refer to CHAPTER 7-GENERAL ACCOUNTING AND END-OF-PERIOD PROCEDURES 527 CENTRAL COAST BANK 1234 Coast Highway San Luis Obispo, CA 93407 (805) 555-9300 Your Name Resort Clothing 784 Marsh Street San Luis Obispo, CA 93407 $32,589.00 Beginning Balance, January 1.2010 1/15/10 Deposit 35,611.33 325.00 37,115.38 1/15/10, NSF Returned Check 1/15/10, Check 1 1/18/10, Check 3 Nt 1/18/10, Check 2 1/25/10, Check 4 1/25/10, Check 5 1/31/10, Service Charge 10.00, NSF Charge 5898 37056.40 36,900.40 156.00 343.00 1,150.00 79.85 25.00 35,302.55 1/31/10, Office Equipment Loan Pmt P53.1235,249.43 S44.51 Interest, $8.61 Principal 1/31/10, Store Fixtures Loan Pmt. 6375 35,185.68 $53.42 Interest, $10.33 Principal 1/31/10, Interest Ending Balance, 1/31/10 35,258.98 35,258.98 Print a Detailed Reconciliation Report. Adjust column widths so the report fits on one page econcile the Visa account using the statement on the following page Print a Detailed Reconciliation Report. Pay Central Coast Bank for the Visa bill using Check No. 9. Print Check No. 9 QUICKBOoKS PRO 2010: A COMPLETE COURSE 528 CENTRAL COAST BANK 1234 Coast Highway San Luis Obispo, CA 93407 Your Name Resort Clothing 784 Marsh Street San Luis Obispo, CA 93407 VISA Acct #9187-52-9152 Beginning Balance, January 2,2010 19/10, Clothes Time Balance 0.00 196,00 196.00 250.00 446.00 1/18/10, Office Masters Ending Balance, 1/31/10 446.00 Minimum Payment Due: $50.00 After completing the Visa reconciliation, distribute capital to each owner: divide the balance of 3100 Your Name& Olsen, Capital - Other equally between the two partners. (View a Standard Balance Sheet to see the balance of the Capital-Other account.) Record an entry to transfer each owner's portion of the Capital Other to the individual capital accounts. (Memo: Transfer Capital to Individual Accounts) Verify or change reporting preferences to accrual basis Print the following for January 1-31, 2010, or as of January 31, 2010: o Trial Balance o Standard Profit and Loss Statement Divide in half and transfer Net Income/Retained Earnings into owners' individual Capital accounts. Close Drawing accounts into owner's individual Capital accounts Print a Standard Balance Sheet Prepare an archive copy of the company file Close the period as of January 31, 2010 (Do not assign passwords) After closing the period on 01/31/10, discovered an error in the amount of Office Supplies and Sales Supplies: Transfer $40 from Office Supplies to Sales Supplies After closing the period on 01/31/10, found one damaged tie. Adjust the quantity of ties on 01/31/10 using the Expense account 6190 Merchandise Adjustments change the net income/retained earnings adjustment to reflect the merchandise adjustment for the ties Backup the company Print Reports for February 1 2010 and February 1,2011 o Journal for January, 2010 (Landscape orientation, Fit to one page wide) o Post-Closing Trial Balance, February 1, 2010 o Post-Closing Standard Profit and Loss Statement, February 1, 2010 o Post-Closing Standard Balance Sheet, February 1, 2010 o Standard Balance Sheet, February 1, 2011 ERIOD PROCEDURES 529 CHAPTER 7-GENERAL ACCOUNTING AND END-OF-P NAME TRANSMITTAL CHAPTER 7 YOUR NAME RESORT CLOTHING Attach the following documents and reports: Account Listing eheck No. 7: Your Name eheck No. 8: Karen Olsen Bank Reconciliation, January 31, 2010 Visa Reconciliation, January 31, 2010 Check No. 9: Central Coast Bank Trial Balance, January 31, 2010 Standard Profit and Loss, January 2010 Standard Balance Sheet, January 31, 2010 Journal, January, 2010 Post-Closing Trial Balance, February 1, 2010 Post-Closing Profit and Loss, February 1, 2010 Post-Closing Balance Sheet, February 1, 2010 Balance Sheet, February 1, 2011 CHAPTER 7-GENERAL ACCOUNTING AND END-OF-PERIOD PROCEDURES 525 END-OF-CHAPTER PROBLEM YOUR NAME RESORT CLOTHING Chapter 7 continues with the end-of-period adjustments, bank and credit card reconciliations, archive disks, and closing the period for Your Name Resort Clothing The company does use a certified public accountant for guidance and assistance with appropriate accounting procedures. The CPA has provided information for Karen to use for adjusting entries, etc Continue to use the copy of Your Name Resort Clothing you used in the previous chapters. Open the company-the file used is Clothing.qbw. Record the adjustments and other transactions as you were instructed in the chapter. Always read the transaction carefully and review the Chart of Accounts when selecting transaction accounts. Print the reports and journals as indicated. RECORD TRANSACTIONS January 31, 2010-Enter the following: Change the names and/or the account numbers of the following accounts. Make sure the account description is appropriate for the new account name. 0 260 Printing and Reproduction to 6260 Printing and Duplication /6350 Travel & Ent to 6350 Travel o 3010 Your Name & Olsen, Capital to 3100 Your Name & Olsen, Capital Remember to use just your last name. . Add the following accounts: Equity account 3110 Your Name, Capital (subaccount of 3100) 0 Equity account 3120 Karen Olsen, Capital (subaccount of 3100) Change the following accounts: 3011 Your Name, Investment to 3111 Your Name, Investment (subaccount of 3110) (Note: Since 3110 is a subaccount of 3100, you may not see the entire name of the subaccount listing. Cursor through the subaccount name to read it completely.) 3013 Your Name, Drawing to 3112 Your Name, Drawing (subaccount of 3110) 012 Karen Olsen, Investment to 3121 Karen Olsen, Investment (subaccount of 3120) QUICKBOOKS PRO 2010: A COMPLETE COURSE 526 3014 Karen Olsen, Drawing to 3122 Karen Olsen, Drawing (subaccount of 3120) Make the following accounts inactive: 6291 Building Repairs o 6351 Entertainment Delete the following accounts: 6182 Disability Insurance o 6213 Mortgage o 6823 Property Print an Account Listing in Landscape orientation (Do not show inactive accounts. Use the Report menu to print the Account Listing. Resize the columns to display the Account Names in full-including subaccounts-and to hide the columns for Description, and Tax Line.) Create a Fixed Asset Item List for e Office Equipment, New, Date is 12/31/09, Cost is $8,000, Account is 1510 Store Fixtures, New, Date is 12/31/09, Cost is $9,500, Account is 1520 Enter adjusting entries in the Journal and use the memo Adjusting Entry for the following: /Office Supplies Used, the amount used is S35 Sales Supplies Used, account balance (on hand) at the end of the month is $1,400 Record a compound entry for depreciation for the month: Office Equipment, $66.67 and Store Fixtures, $79.17 The amount of insurance remaining in the Prepaid Insurance account is for si months of liability insurance. Record the liability insurance expense for the month Each owner withdrew $500. (Memo: Withdrawal for January) Print Check Nos. 7 and 8 for the owners' withdrawals. Prepare Bank Reconciliation and Enter Adjustments for the Reconciliation: the chapter for appropriate Memo notations) Refer to CHAPTER 7-GENERAL ACCOUNTING AND END-OF-PERIOD PROCEDURES 527 CENTRAL COAST BANK 1234 Coast Highway San Luis Obispo, CA 93407 (805) 555-9300 Your Name Resort Clothing 784 Marsh Street San Luis Obispo, CA 93407 $32,589.00 Beginning Balance, January 1.2010 1/15/10 Deposit 35,611.33 325.00 37,115.38 1/15/10, NSF Returned Check 1/15/10, Check 1 1/18/10, Check 3 Nt 1/18/10, Check 2 1/25/10, Check 4 1/25/10, Check 5 1/31/10, Service Charge 10.00, NSF Charge 5898 37056.40 36,900.40 156.00 343.00 1,150.00 79.85 25.00 35,302.55 1/31/10, Office Equipment Loan Pmt P53.1235,249.43 S44.51 Interest, $8.61 Principal 1/31/10, Store Fixtures Loan Pmt. 6375 35,185.68 $53.42 Interest, $10.33 Principal 1/31/10, Interest Ending Balance, 1/31/10 35,258.98 35,258.98 Print a Detailed Reconciliation Report. Adjust column widths so the report fits on one page econcile the Visa account using the statement on the following page Print a Detailed Reconciliation Report. Pay Central Coast Bank for the Visa bill using Check No. 9. Print Check No. 9 QUICKBOoKS PRO 2010: A COMPLETE COURSE 528 CENTRAL COAST BANK 1234 Coast Highway San Luis Obispo, CA 93407 Your Name Resort Clothing 784 Marsh Street San Luis Obispo, CA 93407 VISA Acct #9187-52-9152 Beginning Balance, January 2,2010 19/10, Clothes Time Balance 0.00 196,00 196.00 250.00 446.00 1/18/10, Office Masters Ending Balance, 1/31/10 446.00 Minimum Payment Due: $50.00 After completing the Visa reconciliation, distribute capital to each owner: divide the balance of 3100 Your Name& Olsen, Capital - Other equally between the two partners. (View a Standard Balance Sheet to see the balance of the Capital-Other account.) Record an entry to transfer each owner's portion of the Capital Other to the individual capital accounts. (Memo: Transfer Capital to Individual Accounts) Verify or change reporting preferences to accrual basis Print the following for January 1-31, 2010, or as of January 31, 2010: o Trial Balance o Standard Profit and Loss Statement Divide in half and transfer Net Income/Retained Earnings into owners' individual Capital accounts. Close Drawing accounts into owner's individual Capital accounts Print a Standard Balance Sheet Prepare an archive copy of the company file Close the period as of January 31, 2010 (Do not assign passwords) After closing the period on 01/31/10, discovered an error in the amount of Office Supplies and Sales Supplies: Transfer $40 from Office Supplies to Sales Supplies After closing the period on 01/31/10, found one damaged tie. Adjust the quantity of ties on 01/31/10 using the Expense account 6190 Merchandise Adjustments change the net income/retained earnings adjustment to reflect the merchandise adjustment for the ties Backup the company Print Reports for February 1 2010 and February 1,2011 o Journal for January, 2010 (Landscape orientation, Fit to one page wide) o Post-Closing Trial Balance, February 1, 2010 o Post-Closing Standard Profit and Loss Statement, February 1, 2010 o Post-Closing Standard Balance Sheet, February 1, 2010 o Standard Balance Sheet, February 1, 2011 ERIOD PROCEDURES 529 CHAPTER 7-GENERAL ACCOUNTING AND END-OF-P NAME TRANSMITTAL CHAPTER 7 YOUR NAME RESORT CLOTHING Attach the following documents and reports: Account Listing eheck No. 7: Your Name eheck No. 8: Karen Olsen Bank Reconciliation, January 31, 2010 Visa Reconciliation, January 31, 2010 Check No. 9: Central Coast Bank Trial Balance, January 31, 2010 Standard Profit and Loss, January 2010 Standard Balance Sheet, January 31, 2010 Journal, January, 2010 Post-Closing Trial Balance, February 1, 2010 Post-Closing Profit and Loss, February 1, 2010 Post-Closing Balance Sheet, February 1, 2010 Balance Sheet, February 1, 2011