Case Problem -
On June 30, 2017, Lynn's Music Studio will open a new bank account and transfer funds among the various cash accounts. At the end of June, after receiving the bank statement for the company's Cash - Operating account, Lynn Garcia will prepare a bank reconciliation. In addition, during the month of July, Lynn Garcia will begin using a credit card for travel and seminar expenses. The company file includes the information for Lynn's Music Studio as of June 30, 2017.
1. Open the company file CH10 Lynn's Music Studio.QBW.
2. Make a backup copy of the company file and name it LMS10 [Your Name] Lynn's Music Studio.
3. Restore the backup copy of the company file. In both the Open Backup Copy and Save Company File as windows, use the file name LMS 10 [Your Name] Lynn's Music Studio.
4. Change the company name to LMS10 [Your Name] Lynn's Music Studio.
5. Add the following accounts:
Type Number and Name
Bank 1050 Cash Money Market
Credit Card 2015 Harmony Club Card
Expense 6060 Bank Service Charges
Expense 6475 Travel and Seminars
Other Income 6900 Interest Income
6. Using the Transfer Funds between Accounts window, record the following transactions:
Jun. 30 - Transfer $3,000 from the Cash Operating account to the Cash Payroll account.
Jun. 30 - Transfer $6,000 from the Cash - Operating account to the Cash - Money Market account.
7. Using the Reconcile window, prepare a bank reconciliation for the Cash - Operating account as of June 30, 2017, based on the information listed below. Remember, since this is the first reconciliation, the opening balance is zero.
a. The cash figure per the bank statement is $5,464.78 as of June 30.
b. The cash balance per the company's books is $2,615.18.
c. The bank charged the account $20 for bank service charges.
d. The bank credited the account $10 for interest income.
e. All deposits cleared the bank.
f. Check Nos. 14 and 15 did not clear the bank.
g. A check from Mulligan Residence included in the April 30 deposit was returned NSF (nontaxable).
8. Print a bank reconciliation report using the full detail report choice. Statement closing date is June 30, 2017.
9. Using the Enter Credit Card Charges window, enter the following transaction:
Jul. 16 - Travel and seminar expenses of $400 to attend an instructor's convention in Philadelphia were paid to Express Business Travel with the Harmony Club credit card. Ref. No. 2718.
10. Using the Write Checks window, enter the following transaction:
Jul. 27 - Paid in full: $400, for the Harmony Club Card charge incurred on July 16; Check No. 16.
11. Display and print the following reports:
a. Deposit Detail for April 1, 2017, to June 30, 2017
b. Missing Checks for the Cash - Operating account
c. journal for June 30, 2017, to July 31, 2017