Question 3 Bill Brothers Barbershop is a sole proprietorship that has kept the books manually for several years. They have hired you to move them to QuickBooks Online for the year that begins January 1 of the current year. The books will be kept on accrual basis for management purposes. Review their specifications and answer the question below. a. Which amount should be recorded via the beginning balance journal entry as the beginning balance for the checking account? 1. Check to utility company for $87.26 2. Deposit loan from parents for $6,000 3. Retail sales of $2,200 4. The three open invoices issued to the hair stylist 5. Check to the telephone company for $54.19 6. Check for supplies for $1,050 b. Which 3 should be entered as individual transactions, with their original dates, rather than entered using the initial journal entry? 1. $0.00 2. $12,720.02 3. $12,801.56 4. $12,861.47 5. $13,002.92 Bill Brothers' barbershop Bill Brothers will use his prior accounting system for any historical income or expense activity prior to January 1 of the current year There are 3 other barbers who are independent contractors and rent booths from the shop @ $350.00/week. Bill would like to use recurring invoices delivered via email to invoice the barbers for rent Bill's parents loaned the shop money; the remaining balance is $6,000.00 as of December 31 of the prior year In December of the prior year, retail sales were $2,200.00 Bill's outstanding receivables consist of three invoices (no partial payments received) to one of the barbers, who is behind on rent The company purchases its retail product using a credit card. The balance due on the card as of December 31 of the prior year is $1,296.01 All purchases were received by year end The balance per the check book register for the checking account on December 31 of the prior year is $12,861.47 and there are two checks outstanding: telephone expense $54.19 and utilities expense $87.26 Prior year ending owner's equity (retained earnings) per previous accountant is $12,801.56 Bill's manual records as of December 31 of the prior year were kept on a cash basis, and include no prepayments Question 3 Bill Brothers Barbershop is a sole proprietorship that has kept the books manually for several years. They have hired you to move them to QuickBooks Online for the year that begins January 1 of the current year. The books will be kept on accrual basis for management purposes. Review their specifications and answer the question below. a. Which amount should be recorded via the beginning balance journal entry as the beginning balance for the checking account? 1. Check to utility company for $87.26 2. Deposit loan from parents for $6,000 3. Retail sales of $2,200 4. The three open invoices issued to the hair stylist 5. Check to the telephone company for $54.19 6. Check for supplies for $1,050 b. Which 3 should be entered as individual transactions, with their original dates, rather than entered using the initial journal entry? 1. $0.00 2. $12,720.02 3. $12,801.56 4. $12,861.47 5. $13,002.92 Bill Brothers' barbershop Bill Brothers will use his prior accounting system for any historical income or expense activity prior to January 1 of the current year There are 3 other barbers who are independent contractors and rent booths from the shop @ $350.00/week. Bill would like to use recurring invoices delivered via email to invoice the barbers for rent Bill's parents loaned the shop money; the remaining balance is $6,000.00 as of December 31 of the prior year In December of the prior year, retail sales were $2,200.00 Bill's outstanding receivables consist of three invoices (no partial payments received) to one of the barbers, who is behind on rent The company purchases its retail product using a credit card. The balance due on the card as of December 31 of the prior year is $1,296.01 All purchases were received by year end The balance per the check book register for the checking account on December 31 of the prior year is $12,861.47 and there are two checks outstanding: telephone expense $54.19 and utilities expense $87.26 Prior year ending owner's equity (retained earnings) per previous accountant is $12,801.56 Bill's manual records as of December 31 of the prior year were kept on a cash basis, and include no prepayments
