CHAPTER 9 ACCOUNTING FOR A SERVICE COMPANY

Transcription

1 CHAPTER 9 ACCOUNTING FOR A SERVICE COMPANY INSTRUCTOR NOTE: Assignments that can be graded using the QuickBooks Grade Assistant are designated with a *. To download the QuickBooks Grade Assistant: 1. Go to 2. Enter Passcode: DonnaKay 3. Select QB2013 GRADE ASSIST 4. Download QB2013 Grade Assistant Excel files with macros. Instructions are provided on the first worksheet of each QuickBooks Grade Assistant workbook. Students can download Go Digital Excel report templates at and then export their reports to the Excel template for grading with the QuickBooks Grade Assistant.

2 9.2 Exploring QuickBooks with Rock Castle Construction CHAPTER 9 QUICK CHECK CHAPTER 9 Deposit Summary Check No. 501 Check Nos. 502 & 503 Invoice No. 1 Deposit Summary * Trial Balance * Adjusting Entry EXERCISE 9.1 Task 2: Checks * Task 3: Check Detail EXERCISE 9.2 Task 2: Invoices and Deposit Summaries * Task 3: Deposit Detail EXERCISE 9.3 * Task 2: Trial Balance * Task 4: Adjusting Entries * Task 5: Adjusted Trial Balance EXERCISE 9.4 * Task 2: General Ledger * Task 3: Profit & Loss * Task 3: Balance Sheet * Task 3: Statement of Cash Flows EXERCISE 9.6 Task 2: Invoices, Checks & Deposit Summaries * Task 3: Check Detail * Task 3: Deposit Detail * Task 4: Journal * Task 5: Adjusted Trial Balance * Task 5: General Ledger * Task 5: Profit & Loss * Task 5: Balance Sheet * Task 5: Statement of Cash Flows

3 Chapter 9 Accounting for a Service Company 9.3 EXERCISE 9.7 Schedule C-EZ PROJECT 9 QUICK CHECK PROJECT 9 * Deposit Detail * Check Detail * Trial Balance * Adjusting Entries * Adjusted Trial Balance * General Ledger * Profit & Loss * Balance Sheet * Statement of Cash Flows QUICKBOOKS CASE 9 QUICK CHECK QB CASE 9 * Chart of Accounts * Customer List * Vendor List * Item List Invoices Checks Deposit Summaries * Deposit Detail * Check Detail * Adjusting Entries * Adjusted Trial Balance * General Ledger * Profit & Loss * Balance Sheet * Statement of Cash Flows

4 9.4 Exploring QuickBooks with Rock Castle Construction CHAPTER 9 DEPOSIT SUMMARY CHAPTER 9 CHECK NO. 501

5 Chapter 9 Accounting for a Service Company 9.5 CHAPTER 9 CHECK NOS. 502 & 503

6 9.6 Exploring QuickBooks with Rock Castle Construction CHAPTER 9 INVOICE NO. 1

7 Chapter 9 Accounting for a Service Company 9.7 CHAPTER 9 DEPOSIT SUMMARY

8 9.8 Exploring QuickBooks with Rock Castle Construction CHAPTER 9 TRIAL BALANCE Dec 31, 18 Debit Credit YourName Checking 7, Accounts Receivable Undeposited Funds Computer:14200 Computer Cost 1, Equipment:14500 Equipment Cost Accounts Payable Opening Balance Equity 6, Sales 3, Paint Supplies Expense Rent Expense TOTAL 9, ,400.00

9 Chapter 9 Accounting for a Service Company 9.9 CHAPTER 9 ADJUSTING ENTRY Trans # Type Entered/Last Modified Date Num Adj Name Memo Account Debit Credit 11 General Journal 12/06/ :33:57 12/31/2018 ADJ1! Depr Expense Computer ! Accumulated Depr Computer TOTAL

10 9.10 Exploring QuickBooks with Rock Castle Construction EXERCISE 9.1 TASK 2 CHECKS

11 Chapter 9 Accounting for a Service Company 9.11

12 9.12 Exploring QuickBooks with Rock Castle Construction

13 Chapter 9 Accounting for a Service Company 9.13

14 9.14 Exploring QuickBooks with Rock Castle Construction

15 Chapter 9 Accounting for a Service Company 9.15 EXERCISE 9.1 TASK 3 CHECK DETAIL Type Num Date Name Item Account Paid Amount Original Amount Check /01/2018 Cornell Technologies YourName Checking -1, Computer Cost -1, , TOTAL -1, , Bill Pmt -Check /04/2018 Brewer Paint Supplies YourName Checking Bill 01/03/2018 Beneficio, Katrina:Dining Room Paint Supplies Expense Bill 01/04/ Equipment Cost TOTAL Bill Pmt -Check /04/2018 Hartzheim Leasing YourName Checking Bill 01/04/ Rent Expense TOTAL Bill Pmt -Check /28/2018 Hartzheim Leasing YourName Checking Bill 02/01/ Rent Expense TOTAL Bill Pmt -Check /30/2018 Hartzheim Leasing YourName Checking Bill 03/01/ Rent Expense TOTAL Bill Pmt -Check /30/2018 Brewer Paint Supplies YourName Checking Bill 04/04/ Paint Supplies Expense TOTAL

16 9.16 Exploring QuickBooks with Rock Castle Construction Type Num Date Name Item Account Paid Amount Original Amount Bill Pmt -Check /30/2018 Hartzheim Leasing YourName Checking Bill 04/01/ Rent Expense TOTAL Bill Pmt -Check /30/2018 Hartzheim Leasing YourName Checking Bill 05/01/ Rent Expense TOTAL Bill Pmt -Check /30/2018 Hartzheim Leasing YourName Checking Bill 06/01/ Rent Expense TOTAL Bill Pmt -Check /30/2018 Brewer Paint Supplies YourName Checking Bill 07/01/ Paint Supplies Expense TOTAL Bill Pmt -Check /30/2018 Hartzheim Leasing YourName Checking Bill 07/01/ Rent Expense TOTAL Bill Pmt -Check /30/2018 Hartzheim Leasing YourName Checking Bill 08/01/ Rent Expense TOTAL

17 Chapter 9 Accounting for a Service Company 9.17 Type Num Date Name Item Account Paid Amount Original Amount Bill Pmt -Check /30/2018 Brewer Paint Supplies YourName Checking Bill 09/02/ Paint Supplies Expense TOTAL Bill Pmt -Check /30/2018 Hartzheim Leasing YourName Checking Bill 09/01/ Rent Expense TOTAL Bill Pmt -Check /30/2018 Hartzheim Leasing YourName Checking Bill 10/01/ Rent Expense TOTAL Bill Pmt -Check /30/2018 Hartzheim Leasing YourName Checking Bill 11/01/ Rent Expense TOTAL Bill Pmt -Check /30/2018 Hartzheim Leasing YourName Checking Bill 12/01/ Rent Expense TOTAL

18 9.18 Exploring QuickBooks with Rock Castle Construction EXERCISE 9.2 TASK 2 INVOICES AND DEPOSIT SUMMARIES

19 Chapter 9 Accounting for a Service Company 9.19

20 9.20 Exploring QuickBooks with Rock Castle Construction

21 Chapter 9 Accounting for a Service Company 9.21

22 9.22 Exploring QuickBooks with Rock Castle Construction

23 Chapter 9 Accounting for a Service Company 9.23

24 9.24 Exploring QuickBooks with Rock Castle Construction

25 Chapter 9 Accounting for a Service Company 9.25

26 9.26 Exploring QuickBooks with Rock Castle Construction

27 Chapter 9 Accounting for a Service Company 9.27

28 9.28 Exploring QuickBooks with Rock Castle Construction

29 Chapter 9 Accounting for a Service Company 9.29

30 9.30 Exploring QuickBooks with Rock Castle Construction

31 Chapter 9 Accounting for a Service Company 9.31

32 9.32 Exploring QuickBooks with Rock Castle Construction

33 Chapter 9 Accounting for a Service Company 9.33

34 9.34 Exploring QuickBooks with Rock Castle Construction

35 Chapter 9 Accounting for a Service Company 9.35

36 9.36 Exploring QuickBooks with Rock Castle Construction EXERCISE 9.2 TASK 3 DEPOSIT DETAIL Type Num Date Name Account Amount Deposit 01/01/2018 YourName Checking 6, YourName Opening Balance Equity -6, TOTAL -6, Deposit 02/04/2018 YourName Checking 3, Payment /04/2018 Beneficio, Katrina:Dining Room Undeposited Funds -3, TOTAL -3, Deposit 03/15/2018 YourName Checking 3, Payment /15/2018 Beneficio, Katrina:Dining Room Undeposited Funds -3, TOTAL -3, Deposit 04/15/2018 YourName Checking 3, Payment /15/2018 Beneficio, Katrina:Dining Room Undeposited Funds -3, TOTAL -3, Deposit 05/15/2018 YourName Checking 3, Payment /15/2018 Whalen, Tom:Foyer Undeposited Funds -3, TOTAL -3, Deposit 06/15/2018 YourName Checking 3, Payment /15/2018 Whalen, Tom:Foyer Undeposited Funds -3, TOTAL -3, Deposit 07/15/2018 YourName Checking 4, Payment /15/2018 Beneficio, Katrina:Vaulted Kitchen Undeposited Funds -4, TOTAL -4, Deposit 08/15/2018 YourName Checking 3, Payment /15/2018 Beneficio, Katrina:Vaulted Kitchen Undeposited Funds -3, TOTAL -3, Deposit 09/15/2018 YourName Checking 3,680.00

37 Chapter 9 Accounting for a Service Company 9.37 Type Num Date Name Account Amount Payment /15/2018 Beneficio, Katrina:Vaulted Kitchen Undeposited Funds -3, TOTAL -3, Deposit 11/15/2018 YourName Checking 3, Payment /15/2018 Whalen, Tom:Screen Porch Undeposited Funds -3, TOTAL -3, Deposit 12/15/2018 YourName Checking 3, Payment /15/2018 Whalen, Tom:Screen Porch Undeposited Funds -3, TOTAL -3,480.00

38 9.38 Exploring QuickBooks with Rock Castle Construction EXERCISE 9.3 TASK 2 TRIAL BALANCE Dec 31, 18 Debit Credit YourName Checking 35, Accounts Receivable Undeposited Funds Computer:14200 Computer Cost 1, Computer:14300 Accumulated Depr Computer Equipment:14500 Equipment Cost Accounts Payable Opening Balance Equity 6, Sales 34, Paint Supplies Expense Depr Expense Computer Rent Expense 2, TOTAL 41, ,110.00

39 Chapter 9 Accounting for a Service Company 9.39 EXERCISE 9.3 TASK 4 ADJUSTING ENTRIES Date Num Name Memo Account Debit Credit 12/31/2018 ADJ Depr Expense Computer Accumulated Depr Computer /31/2018 ADJ Depr Expense Equipment Acc Depr Equipment TOTAL

40 9.40 Exploring QuickBooks with Rock Castle Construction EXERCISE 9.3 TASK 5 ADJUSTED TRIAL BALANCE Unadjusted Balance Adjustments Adjusted Balance Debit Credit Debit Credit Debit Credit YourName Checking 35, , Accounts Receivable Undeposited Funds Computer:14200 Computer Cost 1, , Computer:14300 Accumulated Depr Computer Equipment:14500 Equipment Cost Equipment:14600 Acc Depr Equipment Accounts Payable Opening Balance Equity 6, , Sales 34, , Paint Supplies Expense Depr Expense Computer Depr Expense Equipment Rent Expense 2, , TOTAL 40, , , ,210.00

41 Chapter 9 Accounting for a Service Company 9.41 EXERCISE 9.4 TASK 2 GENERAL LEDGER Type Date Num Adj Name Memo Split Debit Credit Balance YourName Checking 0.00 Deposit 01/01/2018 Deposit Opening Balance Equity 6, , Check 01/01/ Cornell Technologies Computer Cost 1, , Bill Pmt -Check 02/04/ Brewer Paint Supplies Accounts Payable , Bill Pmt -Check 02/04/ Hartzheim Leasing Accounts Payable , Deposit 02/04/2018 Deposit Undeposited Funds 3, , Bill Pmt -Check 02/28/ Hartzheim Leasing Accounts Payable , Deposit 03/15/2018 Deposit Undeposited Funds 3, , Bill Pmt -Check 03/30/ Hartzheim Leasing Accounts Payable , Deposit 04/15/2018 Deposit Undeposited Funds 3, , Bill Pmt -Check 04/30/ Brewer Paint Supplies Accounts Payable , Bill Pmt -Check 04/30/ Hartzheim Leasing Accounts Payable , Deposit 05/15/2018 Deposit Undeposited Funds 3, , Bill Pmt -Check 05/30/ Hartzheim Leasing Accounts Payable , Deposit 06/15/2018 Deposit Undeposited Funds 3, , Bill Pmt -Check 06/30/ Hartzheim Leasing Accounts Payable , Deposit 07/15/2018 Deposit Undeposited Funds 4, , Bill Pmt -Check 07/30/ Brewer Paint Supplies Accounts Payable , Bill Pmt -Check 07/30/ Hartzheim Leasing Accounts Payable , Deposit 08/15/2018 Deposit Undeposited Funds 3, , Bill Pmt -Check 08/30/ Hartzheim Leasing Accounts Payable , Deposit 09/15/2018 Deposit Undeposited Funds 3, , Bill Pmt -Check 09/30/ Brewer Paint Supplies Accounts Payable , Bill Pmt -Check 09/30/ Hartzheim Leasing Accounts Payable , Bill Pmt -Check 10/30/ Hartzheim Leasing Accounts Payable , Deposit 11/15/2018 Deposit Undeposited Funds 3, , Bill Pmt -Check 11/30/ Hartzheim Leasing Accounts Payable , Deposit 12/15/2018 Deposit Undeposited Funds 3, , Bill Pmt -Check 12/30/ Hartzheim Leasing Accounts Payable , Total YourName Checking 40, , , Accounts Receivable 0.00 Invoice 01/31/ Beneficio, Katrina:Dining Room -SPLIT- 3, , Payment 02/04/ Beneficio, Katrina:Dining Room Undeposited Funds 3, Invoice 02/28/ Beneficio, Katrina:Dining Room Sales 3, , Payment 03/15/ Beneficio, Katrina:Dining Room Undeposited Funds 3, Invoice 03/31/ Beneficio, Katrina:Dining Room Sales 3, , Payment 04/15/ Beneficio, Katrina:Dining Room Undeposited Funds 3, Invoice 04/30/ Whalen, Tom:Foyer Sales 3, , Payment 05/15/ Whalen, Tom:Foyer Undeposited Funds 3, Invoice 05/31/ Whalen, Tom:Foyer Sales 3, , Payment 06/15/ Whalen, Tom:Foyer Undeposited Funds 3, Invoice 06/30/ Beneficio, Katrina:Vaulted Kitchen Sales 4, , Payment 07/15/ Beneficio, Katrina:Vaulted Kitchen Undeposited Funds 4, Invoice 07/31/ Beneficio, Katrina:Vaulted Kitchen Sales 3, , Payment 08/15/ Beneficio, Katrina:Vaulted Kitchen Undeposited Funds 3, Invoice 08/31/ Beneficio, Katrina:Vaulted Kitchen Sales 3, , Payment 09/15/ Beneficio, Katrina:Vaulted Kitchen Undeposited Funds 3, Invoice 10/31/ Whalen, Tom:Screen Porch Sales 3, , Payment 11/15/ Whalen, Tom:Screen Porch Undeposited Funds 3, Invoice 11/30/ Whalen, Tom:Screen Porch Sales 3, , Payment 12/15/ Whalen, Tom:Screen Porch Undeposited Funds 3, Total Accounts Receivable 34, , Undeposited Funds 0.00 Payment 02/04/ Beneficio, Katrina:Dining Room Accounts Receivable 3, , Deposit 02/04/ Beneficio, Katrina:Dining Room Deposit YourName Checking 3, Payment 03/15/ Beneficio, Katrina:Dining Room Accounts Receivable 3, , Deposit 03/15/ Beneficio, Katrina:Dining Room Deposit YourName Checking 3, Payment 04/15/ Beneficio, Katrina:Dining Room Accounts Receivable 3, , Deposit 04/15/ Beneficio, Katrina:Dining Room Deposit YourName Checking 3, Payment 05/15/ Whalen, Tom:Foyer Accounts Receivable 3, , Deposit 05/15/ Whalen, Tom:Foyer Deposit YourName Checking 3, Payment 06/15/ Whalen, Tom:Foyer Accounts Receivable 3, , Deposit 06/15/ Whalen, Tom:Foyer Deposit YourName Checking 3, Payment 07/15/ Beneficio, Katrina:Vaulted Kitchen Accounts Receivable 4, , Deposit 07/15/ Beneficio, Katrina:Vaulted Kitchen Deposit YourName Checking 4, Payment 08/15/ Beneficio, Katrina:Vaulted Kitchen Accounts Receivable 3, , Deposit 08/15/ Beneficio, Katrina:Vaulted Kitchen Deposit YourName Checking 3,

42 9.42 Exploring QuickBooks with Rock Castle Construction Type Date Num Adj Name Memo Split Debit Credit Balance Payment 09/15/ Beneficio, Katrina:Vaulted Kitchen Accounts Receivable 3, , Deposit 09/15/ Beneficio, Katrina:Vaulted Kitchen Deposit YourName Checking 3, Payment 11/15/ Whalen, Tom:Screen Porch Accounts Receivable 3, , Deposit 11/15/ Whalen, Tom:Screen Porch Deposit YourName Checking 3, Payment 12/15/ Whalen, Tom:Screen Porch Accounts Receivable 3, , Deposit 12/15/ Whalen, Tom:Screen Porch Deposit YourName Checking 3, Total Undeposited Funds 34, , Computer Computer Cost 0.00 Check 01/01/ Cornell Technologies 2002 YourName Checking 1, , Total Computer Cost 1, , Accumulated Depr Computer 0.00 General Journal 12/31/2018 ADJ1! Depr Expense Computer Total Accumulated Depr Computer Total Computer 1, , Equipment Equipment Cost 0.00 Bill 01/04/2018 Brewer Paint Supplies Accounts Payable Total Equipment Cost Acc Depr Equipment 0.00 General Journal 12/31/2018 ADJ2! Depr Expense Equipment Total Acc Depr Equipment Total Equipment Accounts Payable 0.00 Bill 01/03/2018 Brewer Paint Supplies Paint Supplies Expense Bill 01/04/2018 Brewer Paint Supplies Equipment Cost Bill 01/04/2018 Hartzheim Leasing Rent Expense , Bill 02/01/2018 Hartzheim Leasing Rent Expense , Bill Pmt -Check 02/04/ Brewer Paint Supplies YourName Checking Bill Pmt -Check 02/04/ Hartzheim Leasing 2003 YourName Checking Bill Pmt -Check 02/28/ Hartzheim Leasing 2003 YourName Checking Bill 03/01/2018 Hartzheim Leasing Rent Expense Bill Pmt -Check 03/30/ Hartzheim Leasing 2003 YourName Checking Bill 04/01/2018 Hartzheim Leasing Rent Expense Bill 04/04/2018 Brewer Paint Supplies Paint Supplies Expense Bill Pmt -Check 04/30/ Brewer Paint Supplies YourName Checking Bill Pmt -Check 04/30/ Hartzheim Leasing 2003 YourName Checking Bill 05/01/2018 Hartzheim Leasing Rent Expense Bill Pmt -Check 05/30/ Hartzheim Leasing 2003 YourName Checking Bill 06/01/2018 Hartzheim Leasing Rent Expense Bill Pmt -Check 06/30/ Hartzheim Leasing 2003 YourName Checking Bill 07/01/2018 Brewer Paint Supplies Paint Supplies Expense Bill 07/01/2018 Hartzheim Leasing Rent Expense Bill Pmt -Check 07/30/ Brewer Paint Supplies YourName Checking Bill Pmt -Check 07/30/ Hartzheim Leasing 2003 YourName Checking Bill 08/01/2018 Hartzheim Leasing Rent Expense Bill Pmt -Check 08/30/ Hartzheim Leasing 2003 YourName Checking Bill 09/01/2018 Hartzheim Leasing Rent Expense Bill 09/02/2018 Brewer Paint Supplies Paint Supplies Expense Bill Pmt -Check 09/30/ Brewer Paint Supplies YourName Checking Bill Pmt -Check 09/30/ Hartzheim Leasing 2003 YourName Checking Bill 10/01/2018 Hartzheim Leasing Rent Expense Bill Pmt -Check 10/30/ Hartzheim Leasing 2003 YourName Checking Bill 11/01/2018 Hartzheim Leasing Rent Expense Bill Pmt -Check 11/30/ Hartzheim Leasing 2003 YourName Checking Bill 12/01/2018 Hartzheim Leasing Rent Expense Bill 12/20/2018 Brewer Paint Supplies Paint Supplies Expense Bill Pmt -Check 12/30/ Hartzheim Leasing 2003 YourName Checking Total Accounts Payable 3, , Opening Balance Equity 0.00 Deposit 01/01/ YourName Invested $6,000 in business YourName Checking 6, ,000.00

43 Chapter 9 Accounting for a Service Company 9.43 Type Date Num Adj Name Memo Split Debit Credit Balance Total Opening Balance Equity , , Sales 0.00 Invoice 01/31/ Beneficio, Katrina:Dining Room -MULTIPLE Accounts Receivable 3, , Invoice 02/28/ Beneficio, Katrina:Dining Room Labor: Mural Painting Accounts Receivable 3, , Invoice 03/31/ Beneficio, Katrina:Dining Room Labor: Mural Painting Accounts Receivable 3, , Invoice 04/30/ Whalen, Tom:Foyer Labor: Faux Painting Accounts Receivable 3, , Invoice 05/31/ Whalen, Tom:Foyer Labor: Faux Painting Accounts Receivable 3, , Invoice 06/30/ Beneficio, Katrina:Vaulted Kitchen Labor: Mural Painting Accounts Receivable 4, , Invoice 07/31/ Beneficio, Katrina:Vaulted Kitchen Labor: Mural Painting Accounts Receivable 3, , Invoice 08/31/ Beneficio, Katrina:Vaulted Kitchen Labor: Mural Painting Accounts Receivable 3, , Invoice 10/31/ Whalen, Tom:Screen Porch Labor: Mural Painting Accounts Receivable 3, , Invoice 11/30/ Whalen, Tom:Screen Porch Labor: Mural Painting Accounts Receivable 3, , Total Sales , , Paint Supplies Expense 0.00 Bill 01/03/2018 Beneficio, Katrina:Dining Room Accounts Payable Invoice 01/31/ Beneficio, Katrina:Dining Room Accounts Receivable Bill 04/04/2018 Brewer Paint Supplies Accounts Payable Bill 07/01/2018 Brewer Paint Supplies Accounts Payable Bill 09/02/2018 Brewer Paint Supplies Accounts Payable Bill 12/20/2018 Brewer Paint Supplies Accounts Payable Total Paint Supplies Expense Depr Expense Computer 0.00 General Journal 12/31/2018 ADJ1! Accumulated Depr Computer Total Depr Expense Computer Depr Expense Equipment 0.00 General Journal 12/31/2018 ADJ2! Acc Depr Equipment Total Depr Expense Equipment Rent Expense 0.00 Bill 01/04/2018 Hartzheim Leasing Van lease Accounts Payable Bill 02/01/2018 Hartzheim Leasing Van lease Accounts Payable Bill 03/01/2018 Hartzheim Leasing Van lease Accounts Payable Bill 04/01/2018 Hartzheim Leasing Van lease Accounts Payable Bill 05/01/2018 Hartzheim Leasing Van lease Accounts Payable , Bill 06/01/2018 Hartzheim Leasing Van lease Accounts Payable , Bill 07/01/2018 Hartzheim Leasing Van lease Accounts Payable , Bill 08/01/2018 Hartzheim Leasing Van lease Accounts Payable , Bill 09/01/2018 Hartzheim Leasing Van lease Accounts Payable , Bill 10/01/2018 Hartzheim Leasing Van lease Accounts Payable , Bill 11/01/2018 Hartzheim Leasing Van lease Accounts Payable , Bill 12/01/2018 Hartzheim Leasing Van lease Accounts Payable , Total Rent Expense 2, , TOTAL 119, ,

44 9.44 Exploring QuickBooks with Rock Castle Construction EXERCISE 9.4 TASK 3 PROFIT & LOSS Jan - Dec 18 Ordinary Income/Expense Income Sales 34, Total Income 34, Gross Profit 34, Expense Paint Supplies Expense Depr Expense Computer Depr Expense Equipment Rent Expense 2, Total Expense 3, Net Ordinary Income 31, Net Income 31,285.00

45 Chapter 9 Accounting for a Service Company 9.45 EXERCISE 9.4 TASK 3 BALANCE SHEET Dec 31, 18 ASSETS Current Assets Checking/Savings YourName Checking 35, Total Checking/Savings 35, Total Current Assets 35, Fixed Assets Computer Computer Cost 1, Accumulated Depr Computer Total Computer 1, Equipment Equipment Cost Acc Depr Equipment Total Equipment Total Fixed Assets 1, TOTAL ASSETS 37, LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable Accounts Payable Total Accounts Payable Total Current Liabilities Total Liabilities Equity Opening Balance Equity 6, Net Income 31, Total Equity 37, TOTAL LIABILITIES & EQUITY 37,335.00

46 9.46 Exploring QuickBooks with Rock Castle Construction EXERCISE 9.4 TASK 3 STATEMENT OF CASH FLOWS Jan - Dec 18 OPERATING ACTIVITIES Net Income 31, Adjustments to reconcile Net Income to net cash provided by operations: Accounts Payable Net cash provided by Operating Activities 31, INVESTING ACTIVITIES Computer:14200 Computer Cost -1, Computer:14300 Accumulated Depr Computer Equipment:14500 Equipment Cost Equipment:14600 Acc Depr Equipment Net cash provided by Investing Activities -1, FINANCING ACTIVITIES Opening Balance Equity 6, Net cash provided by Financing Activities 6, Net cash increase for period 35, Cash at end of period 35,935.00

47 Chapter 9 Accounting for a Service Company 9.47 EXERCISE 9.6 TASK 2 INVOICES, CHECKS & DEPOSIT SUMMARIES

48 9.48 Exploring QuickBooks with Rock Castle Construction

49 Chapter 9 Accounting for a Service Company 9.49

50 9.50 Exploring QuickBooks with Rock Castle Construction EXERCISE 9.6 TASK 3 CHECK DETAIL Type Num Date Name Item Account Paid Amount Original Amount Check /02/2018 Blumer Cleaning Supplies YourName Checking Cleaning Equipment Cost TOTAL Bill Pmt -Check /20/2018 Blumer Cleaning Supplies YourName Checking Bill 01/05/ Supplies Expense TOTAL

51 Chapter 9 Accounting for a Service Company 9.51 EXERCISE 9.6 TASK 3 DEPOSIT DETAIL Type Num Date Name Account Amount Deposit 01/01/2018 YourName Checking 5, Ashley Villa Opening Balance Equity -5, TOTAL -5, Deposit 01/29/2018 YourName Checking 1, Payment /29/2018 Dent, Thomas:Oriental Rugs Undeposited Funds -1, TOTAL -1,000.00

52 9.52 Exploring QuickBooks with Rock Castle Construction EXERCISE 9.6 TASK 4 JOURNAL Trans # Type Date Num Adj Name Memo Account Debit Credit 1 Deposit 01/01/2018 Deposit YourName Checking 5, Ashley Villa Deposit Opening Balance Equity 5, , , Check 01/02/ Blumer Cleaning Supplies 2004 YourName Checking Blumer Cleaning Supplies Cleaning Equipment Cost Bill 01/05/2018 Blumer Cleaning Supplies Accounts Payable Blumer Cleaning Supplies Supplies Expense Invoice 01/09/ Dent, Thomas:Oriental Rugs Accounts Receivable 1, Dent, Thomas:Oriental Rugs -MULTIPLE Sales 1, , , Bill Pmt -Check 01/20/ Blumer Cleaning Supplies 2004 YourName Checking Blumer Cleaning Supplies Accounts Payable Payment 01/29/ Dent, Thomas:Oriental Rugs Undeposited Funds 1, Dent, Thomas:Oriental Rugs Accounts Receivable 1, , , Deposit 01/29/2018 Deposit YourName Checking 1, Dent, Thomas:Oriental Rugs Deposit Undeposited Funds 1, , , General Journal 01/31/2018 ADJ1! Depreciation Expense 25.00! Acc Depr Cleaning Equipment TOTAL 9, ,125.00

53 Chapter 9 Accounting for a Service Company 9.53 EXERCISE 9.6 TASK 5 ADJUSTED TRIAL BALANCE Unadjusted Balance Adjustments Adjusted Balance Debit Credit Debit Credit Debit Credit YourName Checking 5, , Accounts Receivable Undeposited Funds Cleaning Equipment:14500 Cleaning Equipment Cost Cleaning Equipment:14600 Acc Depr Cleaning Equipment Accounts Payable Opening Balance Equity 5, , Sales 1, , Depreciation Expense Supplies Expense TOTAL 6, , , ,025.00

54 9.54 Exploring QuickBooks with Rock Castle Construction EXERCISE 9.6 TASK 5 GENERAL LEDGER Type Date Num Adj Name Memo Split Debit Credit Balance YourName Checking 0.00 Deposit 01/01/2018 Deposit Opening Balance Equity 5, , Check 01/02/ Blumer Cleaning Supplies Cleaning Equipment Cost , Bill Pmt -Check 01/20/ Blumer Cleaning Supplies Accounts Payable , Deposit 01/29/2018 Deposit Undeposited Funds 1, , Total YourName Checking 6, , , Accounts Receivable 0.00 Invoice 01/09/ Dent, Thomas:Oriental Rugs -SPLIT- 1, , Payment 01/29/ Dent, Thomas:Oriental Rugs Undeposited Funds 1, Total Accounts Receivable 1, , Undeposited Funds 0.00 Payment 01/29/ Dent, Thomas:Oriental Rugs Accounts Receivable 1, , Deposit 01/29/ Dent, Thomas:Oriental Rugs Deposit YourName Checking 1, Total Undeposited Funds 1, , Cleaning Equipment Cleaning Equipment Cost 0.00 Check 01/02/ Blumer Cleaning Supplies 2004 YourName Checking Total Cleaning Equipment Cost Acc Depr Cleaning Equipment 0.00 General Journal 01/31/2018 ADJ1! Depreciation Expense Total Acc Depr Cleaning Equipment Total Cleaning Equipment Accounts Payable 0.00 Bill 01/05/2018 Blumer Cleaning Supplies Supplies Expense Bill Pmt -Check 01/20/ Blumer Cleaning Supplies 2004 YourName Checking Total Accounts Payable Opening Balance Equity 0.00 Deposit 01/01/2018 Ashley Villa Deposit YourName Checking 5, , Total Opening Balance Equity , , Sales 0.00 Invoice 01/09/ Dent, Thomas:Oriental Rugs -MULTIPLE Accounts Receivable 1, , Total Sales , , Depreciation Expense 0.00 General Journal 01/31/2018 ADJ1! Acc Depr Cleaning Equipment Total Depreciation Expense Supplies Expense 0.00 Bill 01/05/2018 Blumer Cleaning Supplies Accounts Payable Total Supplies Expense TOTAL 9, ,

55 Chapter 9 Accounting for a Service Company 9.55 EXERCISE 9.6 TASK 5 PROFIT & LOSS Jan 18 Ordinary Income/Expense Income Sales 1, Total Income 1, Gross Profit 1, Expense Depreciation Expense Supplies Expense Total Expense Net Ordinary Income Net Income

56 9.56 Exploring QuickBooks with Rock Castle Construction EXERCISE 9.6 TASK 5 BALANCE SHEET Jan 31, 18 ASSETS Current Assets Checking/Savings YourName Checking 5, Total Checking/Savings 5, Total Current Assets 5, Fixed Assets Cleaning Equipment Cleaning Equipment Cost Acc Depr Cleaning Equipment Total Cleaning Equipment Total Fixed Assets TOTAL ASSETS 5, LIABILITIES & EQUITY Equity Opening Balance Equity 5, Net Income Total Equity 5, TOTAL LIABILITIES & EQUITY 5,875.00

57 Chapter 9 Accounting for a Service Company 9.57 EXERCISE 9.6 TASK 5 STATEMENT OF CASH FLOWS Jan 18 OPERATING ACTIVITIES Net Income Net cash provided by Operating Activities INVESTING ACTIVITIES Cleaning Equipment:14500 Cleaning Equipment Cost Cleaning Equipment:14600 Acc Depr Cleaning Equipment Net cash provided by Investing Activities FINANCING ACTIVITIES Opening Balance Equity 5, Net cash provided by Financing Activities 5, Net cash increase for period 5, Cash at end of period 5,000.00

58 9.58 Exploring QuickBooks with Rock Castle Construction EXERCISE 9.7 SCHEDULE C-EZ SCHEDULE C-EZ (Form 1040) Department of the Treasury Internal Revenue Service (99) Name of proprietor Net Profit From Business (Sole Proprietorship) Partnerships, joint ventures, etc., generally must file Form 1065 or 1065-B. Attach to Form 1040, 1040NR, or See instructions on page 2. OMB No Attachment Sequence No. 09A Social security number (SSN) Part I General Information You May Use Schedule C-EZ Instead of Schedule C Only If You: Had business expenses of $5,000 or less. Use the cash method of accounting. Did not have an inventory at any time during the year. Did not have a net loss from your business. Had only one business as either a sole proprietor, qualified joint venture, or statutory employee. And You: Had no employees during the year. Are not required to file Form 4562, Depreciation and Amortization, for this business. See the instructions for Schedule C, line 13, to find out if you must file. Do not deduct expenses for business use of your home. Do not have prior year unallowed passive activity losses from this business. A Principal business or profession, including product or service B Enter business code (see page 2) C Business name. If no separate business name, leave blank. D Enter your EIN (see page 2) E Business address (including suite or room no.). Address not required if same as on page 1 of your tax return. City, town or post office, state, and ZIP code F Did you make any payments in 2013 that would require you to file Form(s) 1099? (see the Schedule C instructions) Yes No G If Yes, did you or will you file required Forms 1099? Yes No Part II Figure Your Net Profit 1 Gross receipts. Caution. If this income was reported to you on Form W-2 and the Statutory employee box on that form was checked, see Statutory Employees in the instructions for Schedule C, line 1, and check here Total expenses (see page 2). If more than $5,000, you must use Schedule C Net profit. Subtract line 2 from line 1. If less than zero, you must use Schedule C. Enter on both Form 1040, line 12, and Schedule SE, line 2, or on Form 1040NR, line 13 and Schedule SE, line 2 (see instructions). (Statutory employees, do not report this amount on Schedule SE, line 2.) Estates and trusts, enter on Form 1041, line Part III Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 2. 4 When did you place your vehicle in service for business purposes? (month, day, year). 5 Of the total number of miles you drove your vehicle during 2013, enter the number of miles you used your vehicle for: a Business b Commuting (see page 2) c Other 6 Was your vehicle available for personal use during off-duty hours? Yes No 7 Do you (or your spouse) have another vehicle available for personal use? Yes No 8a Do you have evidence to support your deduction? Yes No b If Yes, is the evidence written? Yes No For Paperwork Reduction Act Notice, see the separate instructions for Schedule C (Form 1040). Cat. No D Schedule C-EZ (Form 1040) 2013

59 Chapter 9 Accounting for a Service Company 9.59 Schedule C-EZ (Form 1040) 2013 Page 2 Instructions Future developments. For the latest information about developments related to Schedule C-EZ (Form 1040) and its instructions, such as legislation enacted after they were published, go to CAUTION Before you begin, see General Instructions in the 2013 Instructions for Schedule C. You can use Schedule C-EZ instead of Schedule C if you operated a business or practiced a profession as a sole proprietorship or qualified joint venture, or you were a statutory employee and you have met all the requirements listed in Schedule C-EZ, Part I. For more information on electing to be taxed as a qualified joint venture (including the possible social security benefits of this election), see Qualified Joint Venture in the instructions for Schedule C. You can also go to IRS.gov and enter "qualified joint venture" in the search box. Line A Describe the business or professional activity that provided your principal source of income reported on line 1. Give the general field or activity and the type of product or service. Line B Enter the six-digit code that identifies your principal business or professional activity. See the instructions for Schedule C for the list of codes. Line D Enter on line D the employer identification number (EIN) that was issued to you and in your name as a sole proprietor. If you are filing Form 1041, enter the EIN issued to the estate or trust. Do not enter your SSN. Do not enter another taxpayer s EIN (for example, from any Forms 1099-MISC that you received). If you are the sole owner of a limited liability company (LLC), do not enter on line D the EIN issued to the LLC, if any. If you do not have an EIN, leave line D blank. You need an EIN only if you have a qualified retirement plan or are required to file an employment, excise, alcohol, tobacco, or firearms tax return, are a payer of gambling winnings, or are filing Form 1041 for an estate or trust. If you need an EIN, see the Instructions for Form SS-4. Line E Enter your business address. Show a street address instead of a box number. Include the suite or room number, if any. Line F See the instructions for line I in the instructions for Schedule C to help determine if you are required to file any Forms Line 1 Enter gross receipts from your trade or business. Include amounts you received in your trade or business that were properly shown on Form 1099-MISC. If the total amounts that were reported in box 7 of Forms 1099-MISC are more than the total you are reporting on line 1, attach a statement explaining the difference. You must show all items of taxable income actually or constructively received during the year (in cash, property, or services). Income is constructively received when it is credited to your account or set aside for you to use. Do not offset this amount by any losses. Line 2 Enter the total amount of all deductible business expenses you actually paid during the year. Examples of these expenses include advertising, car and truck expenses, commissions and fees, insurance, interest, legal and professional services, office expenses, rent or lease expenses, repairs and maintenance, supplies, taxes, travel, the allowable percentage of business meals and entertainment, and utilities (including telephone). For details, see the instructions for Schedule C, Parts II and V. You can use the optional worksheet below to record your expenses. Enter on lines b through f the type and amount of expenses not included on line a. If you claim car or truck expenses, be sure to complete Schedule C-EZ, Part III. Line 3 Nonresident aliens using Form 1040NR should also enter the total on Schedule SE, line 2, if you are covered under the U.S. social security system due to an international social security agreement currently in effect. See the Schedule SE instructions for information on international social security agreements. Line 5b Generally, commuting is travel between your home and a work location. If you converted your vehicle during the year from personal to business use (or vice versa), enter your commuting miles only for the period you drove your vehicle for business. For information on certain travel that is considered a business expense rather than commuting, see the Instructions for Form Optional Worksheet for Line 2 (keep a copy for your records) a Deductible meals and entertainment (see the instructions for Schedule C, line 24b) a b c d e f b c d e f g Total. Add lines a through f. Enter here and on line g Schedule C-EZ (Form 1040) 2013

60 9.60 Exploring QuickBooks with Rock Castle Construction PROJECT 9 DEPOSIT DETAIL Type Num Date Name Account Amount Deposit 01/01/2018 YourName Checking 5, Dominic Leonardo Opening Balance Equity -5, TOTAL -5, Deposit 01/20/2018 YourName Checking Payment /20/2018 Redeker Bed & Breakfast Undeposited Funds TOTAL Deposit 01/22/2018 YourName Checking Payment /22/2018 Etzkin Realty Undeposited Funds TOTAL Deposit 01/23/2018 YourName Checking Payment /23/2018 Holcomb Health Foods Undeposited Funds TOTAL Deposit 01/28/2018 YourName Checking Payment /28/2018 Etzkin Realty Undeposited Funds TOTAL

61 Chapter 9 Accounting for a Service Company 9.61 PROJECT 9 CHECK DETAIL Type Num Date Name Item Account Paid Amount Original Amount Bill Pmt -Check /01/2018 Pitts Leasing YourName Checking Bill 01/01/ Rent Expense TOTAL Bill Pmt -Check /20/2018 Jackson Computer Services YourName Checking Bill 01/20/ Office Supplies TOTAL Bill Pmt -Check /24/2018 Jackson Computer Services YourName Checking Bill 01/24/ Office Supplies TOTAL Bill Pmt -Check /31/2018 Jackson Computer Services YourName Checking -2, Bill 01/02/ Furniture and Equipment -2, , TOTAL -2, ,100.00

62 9.62 Exploring QuickBooks with Rock Castle Construction PROJECT 9 TRIAL BALANCE Jan 31, 18 Debit Credit YourName Checking 4, Accounts Receivable 1, Undeposited Funds Furniture and Equipment 2, Accounts Payable Opening Balance Equity 5, Sales 4, Office Supplies Rent Expense TOTAL 9, ,920.00

63 Chapter 9 Accounting for a Service Company 9.63 PROJECT 9 ADJUSTING ENTRIES Date Num Name Memo Account Debit Credit 01/31/2018 ADJ Depreciation Expense Accumulated Depreciation /31/2018 ADJ Depreciation Expense Accumulated Depreciation /31/2018 ADJ Office Supplies on Hand Office Supplies TOTAL

64 9.64 Exploring QuickBooks with Rock Castle Construction PROJECT 9 ADJUSTED TRIAL BALANCE Unadjusted Balance Adjustments Adjusted Balance Debit Credit Debit Credit Debit Credit YourName Checking 4, , Accounts Receivable 1, , Undeposited Funds Office Supplies on Hand Furniture and Equipment 2, , Accumulated Depreciation Accounts Payable Opening Balance Equity 5, , Sales 4, , Depreciation Expense Office Supplies Rent Expense TOTAL 9, , , ,022.78

65 Chapter 9 Accounting for a Service Company 9.65 PROJECT 9 GENERAL LEDGER Type Date Num Adj Name Memo Split Debit Credit Balance YourName Checking 0.00 Deposit 01/01/2018 Deposit Opening Balance Equity 5, , Bill Pmt -Check 01/01/ Pitts Leasing Accounts Payable , Bill Pmt -Check 01/20/ Jackson Computer Services Accounts Payable , Deposit 01/20/2018 Deposit Undeposited Funds , Deposit 01/22/2018 Deposit Undeposited Funds , Deposit 01/23/2018 Deposit Undeposited Funds , Bill Pmt -Check 01/24/ Jackson Computer Services Accounts Payable , Deposit 01/28/2018 Deposit Undeposited Funds , Bill Pmt -Check 01/31/ Jackson Computer Services Accounts Payable 2, , Total YourName Checking 7, , , Accounts Receivable 0.00 Invoice 01/06/ Redeker Bed & Breakfast -SPLIT Invoice 01/08/ Etzkin Realty -SPLIT , Invoice 01/10/ Holcomb Health Foods Sales , Invoice 01/15/ Etzkin Realty Sales , Payment 01/20/ Redeker Bed & Breakfast Undeposited Funds , Invoice 01/22/ Redeker Bed & Breakfast Sales , Payment 01/22/ Etzkin Realty Undeposited Funds , Payment 01/23/ Holcomb Health Foods Undeposited Funds , Invoice 01/27/ Holcomb Health Foods -SPLIT , Payment 01/28/ Etzkin Realty Undeposited Funds , Total Accounts Receivable 4, , , Undeposited Funds 0.00 Payment 01/20/ Redeker Bed & Breakfast Accounts Receivable Deposit 01/20/ Redeker Bed & Breakfast Deposit YourName Checking Payment 01/22/ Etzkin Realty Accounts Receivable Deposit 01/22/ Etzkin Realty Deposit YourName Checking Payment 01/23/ Holcomb Health Foods Accounts Receivable Deposit 01/23/ Holcomb Health Foods Deposit YourName Checking Payment 01/28/ Etzkin Realty Accounts Receivable Deposit 01/28/ Etzkin Realty Deposit YourName Checking Total Undeposited Funds 2, , Office Supplies on Hand 0.00 General Journal 01/31/2018 ADJ3! Office Supplies Total Office Supplies on Hand Furniture and Equipment 0.00 Bill 01/02/2018 Jackson Computer Services Accounts Payable 2, , Bill 01/03/2018 Jackson Computer Services Accounts Payable , Total Furniture and Equipment 2, , Accumulated Depreciation 0.00 General Journal 01/31/2018 ADJ1! Depreciation Expense General Journal 01/31/2018 ADJ2! Depreciation Expense Total Accumulated Depreciation Accounts Payable 0.00 Bill 01/01/2018 Pitts Leasing Rent Expense Bill Pmt -Check 01/01/ Pitts Leasing 2002 YourName Checking Bill 01/02/2018 Jackson Computer Services Furniture and Equipment 2, , Bill 01/03/2018 Jackson Computer Services Furniture and Equipment , Bill 01/20/2018 Jackson Computer Services Office Supplies , Bill Pmt -Check 01/20/ Jackson Computer Services 2001 YourName Checking , Bill 01/24/2018 Jackson Computer Services Office Supplies , Bill Pmt -Check 01/24/ Jackson Computer Services 2001 YourName Checking , Bill Pmt -Check 01/31/ Jackson Computer Services 2001 YourName Checking 2, Total Accounts Payable 3, , Opening Balance Equity 0.00 Deposit 01/01/ Dominic Leonardo Deposit YourName Checking 5, ,000.00

66 9.66 Exploring QuickBooks with Rock Castle Construction Type Date Num Adj Name Memo Split Debit Credit Balance Total Opening Balance Equity , , Sales 0.00 Invoice 01/06/ Redeker Bed & Breakfast -MULTIPLE Accounts Receivable Invoice 01/08/ Etzkin Realty -MULTIPLE Accounts Receivable , Invoice 01/10/ Holcomb Health Foods Internet Marketing Consulting Accounts Receivable , Invoice 01/15/ Etzkin Realty Social Network Marketing Consulting Accounts Receivable , Invoice 01/22/ Redeker Bed & Breakfast Internet Marketing Consulting Accounts Receivable , Invoice 01/27/ Holcomb Health Foods -MULTIPLE Accounts Receivable , Total Sales , , Depreciation Expense 0.00 General Journal 01/31/2018 ADJ1! Accumulated Depreciation General Journal 01/31/2018 ADJ2! Accumulated Depreciation Total Depreciation Expense Office Supplies 0.00 Bill 01/20/2018 Jackson Computer Services Accounts Payable Bill 01/24/2018 Jackson Computer Services Accounts Payable General Journal 01/31/2018 ADJ3! Office Supplies on Hand Total Office Supplies Rent Expense 0.00 Bill 01/01/2018 Pitts Leasing Accounts Payable Total Rent Expense TOTAL 22, ,

67 Chapter 9 Accounting for a Service Company 9.67 PROJECT 9 PROFIT & LOSS Jan 18 Ordinary Income/Expense Income Sales 4, Total Income 4, Expense Depreciation Expense Office Supplies Rent Expense Total Expense 1, Net Ordinary Income 3, Net Income 3,227.22