Your company is a distributor of surfboards located in Vancouver, BC. The company does not collect sales tax as all of its customers are resellers. Leave Industry text box blank. You began business in 2023 and want to use QBO starting January 1, 2024. Beginning balances as of 12/31/23 have been provided below. 

You must make changes to your company.:

Company

1.  i) Company name—Modify the company name to Exam - Student 
2. ii) Company type— Leave Industry text box blank and then click Save.
3. b. Sales—Turn on - Track inventory quantity on hand. (This will automatically show items table on expense and purchase forms.)

.            Expenses 

i) Turn on - Track expenses and items by customer. 

ii) Turn on - Make expenses and items billable (no markup, track billable expenses and items as income in a single account, and no sales tax charged).

iii) Default bill payment terms net 30. 

iv) Turn on - Use purchase orders (no custom fields).

d. Payments—No changes

 e. Advanced 

i) Time tracking (1) Turn on - Add Service field to timesheets. (2) Turn on - Make Single-Time Activity Billable to Customer.

2 Create new accounts and related beginning balances as follows:

 

Account Type	Detail Type	Name	Balance	As of
Bank	Checking	Checking	25,000.00	12/31/23
Current Asset	Prepaid	Prepaid Expenses	3,000.00	12/31/23
Current Assets	Undeposited	Undeposited		12/31/23
Current Assets	Other Asset	Supplies		12/31/23
Current Assets	Accounts Receivable	Accounts Receivable -Blondie's Boards	5,000.00	12/31/23
Current Assets	Inventory	Inventory		12/31/23
Fixed Assets*	Furniture & Fixtures	Original cost	40,000.00	12/31/23
Fixed Assets*	Furniture & Fixtures	Depreciation	10,000.00	12/31/23
Current Liabilities	Accounts Payable	Account Payable	4,500.00	12/31/23
Long-Term Liabilities	Notes Payable	Notes Payable	50,000.00	12/31/23
Equity	Capital	Your Name Capital	8,500.00	12/31/23

 

 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 boxes. Enter amounts from above as positive numbers.

 

3.  Create two new products and one new service item as follows:

. Products

1. Name/Description - Rook 15, initial quantity 12/31/23 - 10, inventory asset account - Inventory Asset (this account will automatically be created in the chart of accounts when you add this product), price - $650, cost - $400, income account - Sales, expense account - Cost of Goods Sold
2.  
3. ii) Name/Description - The Water Hog, track quantity, initial quantity 12/31/23 - 8, inventory asset account - Inventory Asset, price - $860, cost — $500, income account - Sales, expense account - Cost of Goods Sold
4. b. Service—Name/Description - Consulting, rate - $25, income account - Services. 
5. C. Name Blondie's Boards (new customer) Channel Islands (new vendor)

Add some operating activities (sales and cash receipts) to your company. (All transaction has no tax. Use tax exempt)

1.  Add a new customer - Name: Sarah Hay, Company: Hey Hays Surf, Display name as: Sarah Hay, Address: 230 Beach Way, La Jolla, CA, 92039.

 

2. Add a new service - Tune-Up, rate: $85.00, income account: Services.

 

3. Add a new product - Fred Rubble, initial quantity on hand: 0, as of date: 1/1/24, Inventory asset account: Inventory Asset, price: $950.00, cost: $600.00, income account: Sales, expense account: Cost of Goods Sold.

 

4. Record a new sales receipt on 1/3/24 - Customer: Blondie's Boards, payment method: Check, reference no.: 893, deposit to: Undeposited Funds (add this new current asset account), product: Rook 15, quantity: 2.

 

5. Record a new invoice on 1/4/24 - Customer: Sarah Hay, terms: Net 30, service: Tune-Up, quantity: 2, product: The Water Hog, quantity: 1.

 

6. Record a new cash payment received on 1/5/24 - Customer: Blondie's Boards, payment method: Check, reference no.: 984, deposit to: Undeposited Funds, amount received: $5,000.00. (Be sure to place a check in the Journal Entry #1 check box.)

 

7. Record a deposit made on 1/8/24 to the checking account - Received from: Blondie's Boards, amount received: $1,300.00, related to: Sales Receipt.

 

Add some operating activities (purchases, credit card charges, and cash payments) to your company.

1. Add a new vendor - Stewart Surfboards, 2102 S El Camino Real, San Clemente, CA 92672, terms: net 30.
2.  
3. Add a new vendor - Village Travel, 100 S El Camino Real, San Clemente, CA 92672, terms: due on receipt.
4.  Add a new vendor - Office Depot, 101 Main St., San Diego, CA 92600, terms: due on receipt.

 

1. Add a new tracked product - Name/description: California Nose Rider, initial quantity on hand: 0, As of date: 01/02/24, inventory asset account: Inventory Asset, price: 3,200.00, cost: 1,700.00, income account: Sales, expense account: Cost of Goods Sold.

5. Add a new tracked product - Name/description: 808, initial quantity on hand: 0, As of date: 01/02/24, inventory asset account: Inventory Asset, price: 2,700.00, cost: 1,500.00, income account: Sales, expense account: Cost of Goods Sold.

6. Record a new purchase order for products on 1/2/24 - Vendor: Channel Islands, product 1: Fred Rubble, QTY: 5, product 2: Rook 15, QTY: 4, product 3: The Water Hog, QTY: 1.

7. Record a new purchase order for products on 1/3/24 - Vendor: Stewart Surfboards, product 1: 808, QTY: 2, product 2: California Nose Rider, QTY: 1.

8. Record a new bill based on a purchase order #1001 on 1/5/24 - Vendor: Channel Islands, terms: Net 30

9. All items ordered were received.

10. Record a new bill without a purchase order on 1/8/24 - New vendor: San Diego Gas & Electric, terms: Net 15, category: Utilities, amount: 145.00.

11. Record a new bill without a purchase order on 1/9/24 - New vendor: Prime Properties, terms: Net 15, category 1: Rent or Lease, amount: 2,500.00, category 2: Prepaid Expenses, amount: 5,000.00.

12. Pay all bills due to Channel Islands on 1/19/24 using the checking account and starting with check no. 1001.

 

13. Record a credit card charge on 1/10/24 - vendor: Village Travel, using credit card: VISA, category: Travel, amount: 1,800.00.

 

14. Record check on 1/11/24 - no.: 1002, vendor: Office Depot, amount: 375.00, account: Supplies Asset

Export or Print as PDF your Trial Balance report to Excel, and save it with the file name Student Name 

 Open and print the custom report you created in the last chapter called Transaction Detail by Account.

 

 Export or Print as PDF your Transactions Detail by Account report to Excel, and save it with the file name Student Name (replace with your name) 

Export or Print as PDF All Journal Entries.