QuickBooks Accounting Graded Assignment $3$ Instructions

Jane would like some changes made to the Chart of Accounts.

$1.$ On the Chart of Accounts, Jane asks you to remove the Detail Type column.

$2.$ Jane wants you to open a savings account.Add the new account called TCU Savings.

$3.$ Jane wants you to clean up the chart of accounts. Delete the following accounts:

a$.$ Refunds$-$Allowances

b$.$ Promotional

c$.$ Other General and Administrative expenses

d$.$ Other Portfolio Income

e$.$ Other ordinary Income

f$.$ Shipping and Delivery Income

$4.$ Jane asks you to make the Liability and Disability insurance accounts sub$-$ accounts of

Insurance. To do this, you will need to rename the $$Insurance Expenses$$ accountsto

$$Vehicle Insurance Expense$.$ You cannot delete the account because there are already

transactionsrecorded. Create $$Insurance Expenses$$ again and make both the Liability and

Disability Insurance account and the $$Vehicle Insurance Expense$$ account sub$-$accounts of

$$Insurance Expenses$.$

$5.$ Jane also asked you to make sub accounts under Advertising Expense, one for Google Ads

and One for Facebook.

$6.$ Alice purchased a new Ford truck for the business from Proud Canadian Ford dealership. The truck

cost $$28,750+$ tax. Green Tree Landscapes made a down payment of $$2875\mathrm{.}00$ by writing a cheque to

Proud Canadian Ford. Youwillneedtoset thedealershipupasasupplier.Use the $28$th of last month as the

purchase date.

They are financing the restof the cost. They have received a loan in the name of Green Tree for the

remaining amount from Ford Motor Credit $($Tip: set up Ford Motor Credit as a liability account$).$ Set

up an asset accountto track the original costofthe truck and setup a depreciation accountto record

the depreciation ofthe newasset $($you will record depreciation in the future; you are just setting up

the account at this point$).$ The company is allowed to record the full cost of obtaining the asset

which includesthe amount ofsales tax charged. Create a journal entry to record the asset and the

new liability.

Hint: There are multiple ways to record the transaction. In accounting, whichever form in

Quickbooks you use does not matter as long as the end result is correct. You should end up with an

asset account with the full purchase cost of the asset recorded, a liability accountwith the full

amount ofthe loan recorded, and a reduction of the bank account for the amount of the cheque

that was written.

$7.$ Alice purchased $2$ lawnmowersfor $$995$ each $+$ tax fromJohn Deere; the company$$s asset policy

requires $$capitalizing$$ the purchase of equipment if the cost is greater than $$500.$ Setup the

appropriate accounts accountto track the cost and depreciation of the lawnmower; you will follow

the same steps you used for the purchase ofthe truck.Make the entry on the $28$th of last month.

Alice used her debit cards to pay for the lawnmowers in cash. No depreciation is to be recorded at

this time.

$8.$ Jane has asked you to start using AccountNumbers. Turn on account numbers. Account

numbers are notrequired to beassigned toaccounts at this time however the setting isto beenabled.

NOTE: Add account numbers when instructed by your instructor.

$9.$ Jane has discovered a couple of duplicate accounts.Merge the Purchases$$COS

account into the Other Costs$$COS$.($NOTE: Keep the Other Costs account$).$

The business is growing fast and Jane wants you to update QuickBooks every day.Jane asks you to set up

QuickBooks for Online banking. $($You will not be able to connect to a bank as this requires a live bank feed.

Familiarize yourself with where to go in QuickBooks to create a bank connection.