Question: On December 1, 2014, Larry and Samantha West formed a corporation called Farm Branch Rentals. The new corporation was able to begin operations immediately by purchasing the assets and taking over the location of LMNOP Rentals, an equipment rental company that was going out of business.
The newly formed company uses the following chart of accounts:
1. Set up the new company Farm Branch Rentals in the QuickBooks software with the information in the table that follows.
2. Set up the chart of accounts listed above; currently all accounts are going to begin with a zero balance.
3. Run an accounts listing of the chart of accounts and save in PDF format for submission.
Name of Company: Farm Branch Rentals
Address:
201 Farm Branch Road,
Rocky Mount NC 27811
Phone Number
555-897-7752
Federal ID Number
56-4785965
Business Entity
Corporation
Web Address:
www.farmbranchrentals.com
Email:
Chart of Accounts
Cash Income Taxes Payable
Accounts Receivable
Common/Capital Stock
Prepaid Rent
Retained Earnings
Prepaid Insurance
Dividends
Office Supplies
Rental Fees Earned
Rental Equipment
Salaries Expense
Accumulated Depreciation: Rental Equipment
Utilities Expense
Notes Payable
Rent Expense
Accounts Payable
Office Supplies Expense
Interest Payable
Depreciation Expense
Salaries Payable
Interest Expense
Dividends Payable
Income Taxes Expense
Dividend Expense
Unearned Rental Fees
For full-credit, submit a PDF from QuickBooks showing that the following steps have been completed correctly:
Set up an account for the new company using QuickBooks.
Use December 2014 as the first accounting period for QuickBooks.
Revise, and set up the chart of accounts to match the chart of accounts provided by Samantha and Larry.
After opening the company,
1.Click "Company" from the menu bar,
2.Then click "Chart of Accounts" in the Company section of the Home page.
3.Right click the account, then select "Edit Account."
4.Run an account listing prior to saving.
5.From the menu at the top of the window, select File & Save as PDF.
6.Save the file as P1-IP_LASTNAME on your computer or external device.