6.1 (Prepare T-Accounts): Carolyn Wells had the followingtransactions. Provide total ending balances of each T-Account
A. Jan 1 2016, Carolyn Wells deposited$120,000 into the business which is called the Carolyn Wells, CPA(sole proprietor structure)
B. Jan 5, 2016, The company purchasedsome office furniture for $2,500 by paying cash.
C. It also purchased a business carfor $25,000 by paying $10,000 cash and getting a loan from a localbank for $15,000 for 15 years.
D. Jan 1, 2016, Paid office rent of$1000 for the month of January.
E. Jan 27 2016, Prepared a tax-returnand billed a client $1500 for the services provided. Client willpay in the next 30 days
F. Jan 1, 2016, Purchased insurance toprotect the business and the business car in the amount of $2400for 12 months. The company paid it with the company check 502.
G. Jan 30 2016, Owner purchased a carfor her PERSONAL use and NOT for Business use
H. Jan 30 2016, company paid $200 forUtility Bill
I. Jan 30 2016 Company incurredsalaries expenses of $5000, but will be paying on February5th
J. Client from transaction E paid thecompany $1500
6.2 Prepare Adjusting entries as of January 31, 2016:
6.1 (Prepare T-Accounts): Carolyn Wells had the followingtransactions. Provide total ending balances of each T-Account
A. Jan 1 2016, Carolyn Wells deposited$120,000 into the business which is called the Carolyn Wells, CPA(sole proprietor structure)
B. Jan 5, 2016, The company purchasedsome office furniture for $2,500 by paying cash.
C. It also purchased a business carfor $25,000 by paying $10,000 cash and getting a loan from a localbank for $15,000 for 15 years.
D. Jan 1, 2016, Paid office rent of$1000 for the month of January.
E. Jan 27 2016, Prepared a tax-returnand billed a client $1500 for the services provided. Client willpay in the next 30 days
F. Jan 1, 2016, Purchased insurance toprotect the business and the business car in the amount of $2400for 12 months. The company paid it with the company check 502.
G. Jan 30 2016, Owner purchased a carfor her PERSONAL use and NOT for Business use
H. Jan 30 2016, company paid $200 forUtility Bill
I. Jan 30 2016 Company incurredsalaries expenses of $5000, but will be paying on February5th
J. Client from transaction E paid thecompany $1500
6.2 Prepare Adjusting entries as of January 31, 2016:
Related questions
| Setup a new company in QuickBooks using the followinginformation. |
| OnJanuary 1, 2021, you establish a law firm. Youâve been offered twocontracts on retainer for two local businesses. With the twocontracts and walk-in clients, you think you can make your lawpractice a success. At the current time, you do not plan to hireany employees. Instead, you plan to perform the services yourself,at least initially until cash flow from the business can fundemployee payroll. |
| CompanyName | [your name]Comp Exam 1 |
| Federal Tax ID | 123-45-6789 |
| Address | 12 Elm Street |
| City | Woodbury |
| State | NJ |
| Zip | 08096 |
| Phone | 856-222-3333 |
| Industry | Legal Services |
| Income Tax Form | Sole Proprietor (FORM1040) |
| Fiscal year starts | January 1, 2021 |
| Checking Account | [your name] Comp Exam 1Checking |
| Then, after you have set up yourcompany, you need to add three sets of information. |
| First, you need to add the people you do business with. You willadd the following 2 customers and 3 vendors using the followinginformation. |
| CustomerName/ Company Name | AirlineTransport |
| Address | 40 George Blvd Cherry Hill, NJ 08033 |
| Contact | Mary |
| Telephone | 609-833-2904 |
| Terms | Net 30 |
| CustomerName/ Company Name | CADExpress |
| Address | 1234 Middle Ct Haddonfield, NJ 08033 |
| Contact | Lori |
| Telephone | 856-556-7766 |
| Terms | Net 30 |
| VendorName/ Company Name | AAEquipment Leasing |
| Address | 72 Long Lane Vineland, NJ 08445 |
| Telephone | 609-555-1234 |
| Terms | Net 30 |
| VendorName/ Company Name | Able OfficeSupplies |
| Address | 900 Truman Blvd Marmora, NJ 08229 |
| Telephone | 609-376-1356 |
| Terms | Net 30 |
| VendorName/ Company Name | BayAdvertising Agency |
| Address | 55 Inlet Street Ocean City, NJ 08226 |
| Telephone | 609-376-5555 |
| Terms | Net 30 |
| Then, you will add this informationto the Services you sell. |
| LegalConsultation (hourly) | $120 per hour | Account: 45400 |
| Monthly Retainer | $1000 per month | Account: 45400 |
| Then, you will add banking information as follows: Youâll need toadd a Business Checking Account (current asset account, #10100).Use the numbers â123456789â as both bank account numbers androuting numbers. Your account will be named â[your name] Comp Exam1 Checkingâ, dated 1/1/2021, with a $0 balance. |
| Part II |
| Record the following transactionsin QuickBooks for the new company. |
| Date | Transaction | |
| 01/01/2021 | You invested $1,500cash in the business (Check No. 1000). | |
| 01/01/2021 | Leased officefurniture for the business. Received the bill and paid one monthâsrental ($110 check) to AA Equipment Leasing. | |
| 01/01/2021 | Billed monthlyretainer fees to both clients: Airline Transport and CADExpress. | |
| 01/02/2021 | Purchased $150of office supplies on account from Able Office Supplies. | |
| 01/10/2021 | Paid $540 fromyour business checking account to United States Post Office (USPO)postage expense for mailing brochures to potential clients. | |
| 01/12/2021 | Provided 2 hoursof legal consultation to walk-in client. She paid cash at end ofmeeting today. Deposited into business checking account. | |
| 01/15/2021 | Received billfrom Bay Advertising Agency for $200 of advertising expenses. | |
| 01/16/2021 | Received paymentfrom Airline Transport for monthly retainer fee as billed on01/01/2021. Deposited check # 444 into your business checkingaccount. | |
| 01/20/2021 | Received paymentfrom CAD Express for monthly retainer fee as billed on 01/01/2021.Deposited check #888 into business checking account. | |
| 01/25/2021 | Paid $150 forthe office supplies purchased from Able Office Supplies on01/02/2021. | |
| 01/28/2021 | Provided onehour of legal consultation today to walk-in client. Client paidcash and deposited funds. | |
| Part III |
| Generate the following reportsusing QuickBooks. Convert them to Excel. |
| a. Journal from January 1, 2021 toJanuary 31, 2021. |
| b. Trial Balance at January 31,2021. |
| c. Profit and Loss, standard, fromJanuary 1, 2021 to January 31, 2021. |
| d. Balance Sheet, standard, atJanuary 31, 2021. |
| e. Statement of Cash Flows forJanuary 2021. |
| f. Customer Balance Detail |
| g. Vendor Balance Detail |
