Comprehensive Project
Part I
Set up a new company in QuickBooks using the following information. (Reminder: Save your company ?le to the location speci?ed by your instructor. Use the ?lename: [your name] Comp Exam 2)
On January 1, 2021, you establish a retail store that specializes in ?ower arrangements and ?oral services.
Company Name [your name] Comp Exam 2
Legal Name [your name] Comp Exam 2
Federal Tax ID 12-1234567
Address 222 Main St
City State Sanderson, CA
Phone 415-258-1356
Zip 94355
Industry Retail Shop or Online Commerce
Company Type S Corporation
What do you sell? Both products and services
Estimates Yes
Billing Statements Yes
Progressive Invoicing Yes
Track Time Also Track Sales Orders/Inventory/Bills Yes
Fiscal year starts January 1, 2021
Checking Account [your name] Comp Exam 2 Checking
Customers and vendors using the following information.
Vendor Name/Company Name Flowersbyweb
Address 19 Web Lane
Bayshore, CA 94326
Contact Herman
Telephone 415-555-4567
Terms Net 30
Vendor Name/Company Name Baskets Galore
Address 444 Weavers Avenue
Bayshore, CA 94326
Contact Hope
Telephone 415-555-8901
Terms Net 30
Vendor Name/Company Name EZ Rental
Address 14 Appleton Blvd.
Bayshore, CA 94326
Contact Robert
Telephone 415-555-4590
Terms Net 30
Customer Name/Company Name St Luke's Church Address 330 Third St
Bayshore, CA 94326
Telephone 415-555-1234
Terms Net 30
Tax Non
Customer Name/Company Name Missy Benson Address
Bayshore, CA 94326 923 Maple Lane
Telephone 415-555-4321
Terms Net 30
Tax Tax
Customer Name/Company Name Ellen Johnson Address
Bayshore, CA 94326 9012 Olive Blvd
Telephone 415-555-0987
Terms Net 30
Tax Tax
Add the following information to the Item List. All are taxable.
Item Type Inventory Part
Item Name/Description Basic Floral Kit
Income Account Merchandise Sales
Quantity on Hand 0
Cost $20
Sale $50
Item Type Inventory Part
Item Name/Description Deluxe Floral Kit
Income Account Merchandise Sales
Quantity on Hand 0
Cost $28
Sale $65
Item Type Inventory Part
Item Name/Description Roses (per dozen)
Income Account Merchandise Sales
Quantity on Hand 0
Cost $10
Sale $35
Item Type Service
Item Name/Description Floral Design
Income Account 48600 - Service Sales (add acct if necessary)
Item Type Service
Item Name/Description Wedding Designs
Subitem of Floral Designs
Income Account 48600 - Service Sales
Rate $25
Tax Tax
Item Type Service
Item Name/Description Funeral Designs
Subitem of Floral Designs
Income Account 48600 - Service Sales
Rate $20
Tax Tax
State tax rate is 7.75%. The tax agency is California State Board of Equalization
After displaying account numbers, modify or add the following accounts, including the appropriate tax line, to the chart of accounts for the new QuickBooks company.
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10100
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[your name] Comp Exam 2 Checking
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Opening balance: $0
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Tax line: B/S Assets: Cash
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As of 1/1/2021
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14400
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Industrial Refrigerator
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B/S-Assets: Buildings/oth. depr. Assets
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14500
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Industrial Refrigerator Cost
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B/S-Assets: Buildings/oth. depr. Assets
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(Subaccount of Industrial Refrigerator)
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Opening balance: $5,000 as of 1/01/2021
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14600
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Acc Depr-Industrial Refrigerator
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B/S-Assets: Buildings/oth. depr. Assets
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(Subaccount of Industrial Refrigerator)
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Opening balance:$ 0 as of 1/01/2021
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You decide to hire someone (Beth Kochan) to help run the store. Con?gure QuickBooks for the processing of payroll manually.
Enter payroll information for Beth Kochan
Compensation type Hourly
Your company does not provide Insurance bene?ts Retirement bene?ts Paid time off
Employee Beth Kochan
Address 555 Wayside Dr
Bayshore, CA 94326
SSN 987-65-4321
Telephone 415-555-5827
Hired Date 1/2/2021
Pay Period Bi-monthly (on 15th and 31st)
Hourly rate $10.00
State tax CA -California (only)
Federal and State Filing Status Single
Federal and State Allowance 1
Wage Plan Code S (State Plan for Both UI and DI)
CA Disability Employee Rate 1.0%
CA-Employment Training Tax 0.1%
CA Unemployment 1.5%
Form 940 and Form 941 payment schedule Quarterly
CA withholding and disability insurance payment schedule/CA UI and Employment Training Tax Payee EDD
CA Employment Development Dept Employer Acct. No. 999-9999-9
Payment frequency Quarterly
Hint for problem Only withhold FIT/FICA/SIT from Beth's check
Part II
Record the following transactions in QuickBooks for the new company. Reminder: Print your company name on all checks.
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Assume the following rates for payroll withholdings.
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Federal income tax
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10.00%
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Social security (employee and company)
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6.20%
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Medicare (employee and company)
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1.45%
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State (CA) income tax
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5.00%
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Date Transaction
01/01/2021 You invest $6,000 (check number 101) in the business.
Took out a bank loan for $12,000. This will be repaid within 1 year. (account number 26100 Note Payable-Bank)
Received the bill and paid one month's rental ($250) to EZ Rental. Ordered 10 Basic Floral Kits and 5 Deluxe Floral Kits from Baskets Galore.
01/03/2021 Received all 10 Basic Floral Kits and all 5 Deluxe Floral Kits ordered on 01/01/2021 from Baskets Galore
01/06/2021 Ordered 5 dozen roses from Flowersbyweb.
01/07/2021 Provided an estimate of 12 Wedding Design Arrangements for Missy Benson 01/07/2021 Received bill from Baskets Galore for 01/01/2021 order.
Received order in full from Flowersbyweb and also received invoice.
01/9/2021 Sold 1 Funeral Design Arrangement to St Luke's on account. 01/10/2021 Awarded job from Missy Benson.
01/13/2021 Sent Missy Benson invoice for completing half of the job. 01/13/2021 Paid Baskets Galore in full for merchandise ordered on 01/01/2021.
Paid Flowersbyweb for goods ordered on 01/06/2021.
01/14/2021 Received payment from St Luke's (check no. 350) and deposited the funds.
01/15/2021 Received payment from Missy Benson for job above (check no. 1015) and deposited funds.
Paid Beth for this pay period. For this pay period Beth worked 20 hours.
01/20/2021 Went to O?ce Depot for o?ce supplies - wrote $35 check from business account to cover it.
01/21/2021 Sent Missy Benson invoice for completing the job. 01/22/2021 Sent reminder statements to outstanding customer accounts.
01/28/2021 Received payment from Missy Benson for completing job (check no. 1022) and deposited funds.
01/30/2021 Sold 1 dozen roses to Ellen Johnson (cash sale). 01/31/2021 Paid Beth for this pay period: 15 hours.
01/31/2021 Sold 25 Wedding Designs and 3 dozen Roses to St Luke's Church for cash and deposited these funds along with all undeposited funds.
Part III
Complete all tasks below. Convert all applicable reports to Excel.
1. Run the payroll summary report as of 01/31/2021. Export To Excel
2. Run the Unadjusted Trial Balance at January 31, 2021. Convert to Excel and submit
3. Make the following adjusting entry:
a. Industrial Refrigerator depreciation expense is $75 per month.
4. Print the following reports using QuickBooks. Convert to Excel and Submit to your Instructor:
a. Journal from January 1, 2021 to January 31, 2021.
b. Adjusted Trial Balance at January 31, 2021.
c. Pro?t and Loss, standard, from January 1,2021 to January 31, 2021.
d. Balance Sheet, standard, at January 31, 2021.
e. Statement of Cash Flows for January 1, 2021 to January 31, 2021.
f. Customer Balance Detail for January 1, 2021 to January 31, 2021.
g. Chart of accounts.
h. Vendor Balance Detail
5. Create and convert to Excel a Pro?t and Loss Budget for 2021 based on the following information.
a. January projected merchandise sales: $400
b. Monthly expected sales increase: 3% (compounding)
c. Monthly rent increase: 1% (compounding, January's rent $200)