please create a Income statement, Blanace sheet and Statment of cash flows using the information given from Case 3. Thank you !!
completed, upload the following reports: - Statement of Cash Flows - Income statement Balance Sheet Your company sells and services cell phones. They are a sole proprietor located in La Jolla, California. The company does collect sales tax as all of its customers are consumers. (See Appendix 1 for directions on how to add a sales tax to a company file.) They began business in 2025 and want to use QBO starting January 1,2026. Beginning balances as of 12/31/25 have been provided below. You must make changes to your company. Based on what you learned in the text using the Sample Company, you are to make the following changes to the company you created in Chapter 2: 1 Modify settings as follows: a. Company-Company name - Modify the company name to Case 03 - Student Name (ID Number) replacing Student Name with your name and ID Number with the number your instructor indicated. Use 3990 La Jolla Shores Drive, La Jolla, CA 92037 as the company's address b. SSN-Add 987654321 as your business social security number as you are a sole proprietor. c. Sales-Make sure that Track inventory quantity on hand is on. (This will automatically show items table on expense and purchase forms.) d. Expenses 9) Tum on - Track expenses and items by customer. ii) Turn on - Make expenses and items billable (no markup, trach. billable expenses and items as income in a single account, and chame sales tax). ii) Set defauit bill payment terms to Due on receipt. iv) Turn on - Use purchase orders (no custom fields). c. Payments-No changes f. Time Time Sheet i) Turn on - Show service field to timesheets ii) Turn on - Allow time to be billable. 2 Follow steps provided in Appendix I to add sales tax paid annually beginning 1/1/26. 3 Create new accounts and related beginning balances (Account Type, Detail Type, Name, Balance as of 12/31/25 ) as follows: a. Bank, Chocking, Checking, $12,000 b. Fired Assets, Machinery \& Equipment, Original cost, $15,000 Note: When entering a new fixed asset, place a check in the Track depreciation of this asset check box to reveal Original cost and Depreciation text boses Enter amounts from above as positive numbers. Fixed Assets, Machinery \& Equipment, Depreciation, \$2,000 c. Long-Term Liabilities Notes Payable, Notes Payable, $23,000 d. Equity, Owner's Equity, Owner's Equity, 0 4 Create two new products (Name/Description, initial quantity 12/31/25. inventory asset account, price, cost, income account, expense account): a. Apple iPhone 7, 10, Imventory Asset, \$750, \$500, Note: This account will automatically be created in the chart of accounts when you add this product. Sales of Product Income, Cost of Goods Sold, taxable. b. Pixel, 3, Inventory Asset, 5650, \$400, Sales of Product Income, Cost of Goods Sold, taxable. 5 Create two new service items (Name/Description, fate, income account): a. Apple Repairs, S45, Services, not taxable. (Click + Add new in the Income aocount text box, Account Type: Income, Detail Type: Service/Fee Income, Name: Services) b. Pixel Repairs, 540, Services, not taxable. 6 Make changes to the following accounts via journal entry I as of 12/31/25 with an offset to Opening Balance Equity: 7 Close the Opening Balance Equity account (which should have a balance of $10,075) to Owner's Equity via journal entry 2 as of 12/31/25. (Note: Use Owner's Equity as this company is a sole proprictorship. Retained Earnings would have been used if this company had been a corporation.) 8 Prepare and print a Trial Balance report as of 12/31/25, click the Run report button and then save it as a customized report named Trial Balance 12/31/25, and share it with all users. Click Reports, then seroll down the page to the For my accountant section, and click Trial Balance. Then select Custom as the report period and type 1/1/25 and 12/31/25 as the from-to dates. Your report should look like Figure 3.17. 9 If your trial balance differs from what is shown in Figure 3.17, do the following a. Make sure all of your changes were dated 12/31/25. b. Click on the debit or credit balance to view a transactions report for each account, and investigate why your answer is different. c. Ask your instructor for assistance. d. Be sure your company matehes the above as you will be adding additional business events in Chapter 4. 10 Export your Trial Bulance report to Excel, and save it with the file name Student Name (replace with your name) Ch 03 Case 03 Trial Balance.xlsx. 11 Prepare and print a Transaction Detail by Account report for all transactions between 1/1/10 and 12/31/30, save it as a customized report named Transaction Detail by Account, and share it with all users. If asked, indicate that your business is accrual based. 12 Use your Transaction Detail by Account report to locate any differences in your Trial Balance report created above. a. Make sure all of your changes were dated 12/31/25. b. Click on the line that does not match to view the transaction for that account, and investigate why your answer differs. c. Ask your instructor for assistance. d. Be sure your company matches the above as you will be adding additional business events in Chapter 4. 13 Export your Transactions Detail by Account report to Excel and save it with the file name Student Name (replace with your name) Ch 03 Case 03 Transaction Detail by Account.xlsx
