computerized accounting with quickbooks 2013 chapter 5
Cha r Review an ssment 5·38 I CHAPTER 5 Procedure Check 1. Your company willbeselling anew product. Describe thesteps that must betaken toadd thenew item tothe system.
2.
Explain thedifference betweenusingEnter BillsorReceive Itemsand Enter Billsfrom theVendors pull-down menu.
3.
Which QuickBooks report(s)wouldyouusetoview thesales andpur- chases ofspecific inventory items?
4. Atyear-end, youwish toconfirm thequantity onhand foreach inven- tory item. Howwould youuseQuickBooks reportstodetermine the quantity andvalue ofthe ending inventory?
5. Your company wishestoview theprofitability ofeach inventory item.
How could youuseQuickBooks todevelop thisinformation?
6. Discuss theadvantages ofusing acomputerized accountingsystemto maintain aperpetual inventory system.
Case Problems Case Problem 1 On April 1,2014, LynnGarcia beganherbusiness, calledLynn's Music Studio. Inthe first month ofbusiness, Lynnsetupthe music studio, pro- vided guitar andpiano lessons, andrecorded month-end activity.InMay, the second monthofbusiness, Lynndecides topurchase andsellinventory items ofguitars, keyboards, musicstands, andsheet music. Forcustomers that purchase merchandise inventory,theterms ofpayment are2110, Net30 Days. Forillustration purposes,assumea 7 % sales taxischarged onthe sale of all inventory items.Thecompany fileincludes theinformation forLynn's Music Studio asofMay 1,2014.
1. Open thecompany fileCH5 Lynn's MusicStudio.QBW.
2. Make abackup copyofthe company fileLMS5 ['YourName] Lynn's Music Studio.
3.
Restore thebackup copyofthe company file.I~~both theOpen Backup Copy andSave Company Fileaswindows usethefilename LMS5 [Your Name] Lynn'sMusicStudio.
4. Change theCompany NametoLMS5 [YourName] Lynn'sMusic Studio.
5. Add thefollowing inventory itemstothe Item List:
Type:
Item Name/Number:
Description on Purchase/Sales Transactions:
Cost:
COGS Account:
Preferred Vendor:
Sales Price:
Tax Code:
Income Account:
Asset Account:
Reorder Point:
Inventory Part Keyboards Keyboards 75 5065 CostofKeyboards Sold Katie's Keyboards 150 Tax -Taxable Sales 4065 SaleofKeyboards 1265 Inventory ofKeyboards 10 .~.~,...,..... ,..•. __ ~_, ...."""......"._,. ,..~__ #-~_ ..•..-.. __ ,,-.<-~ •.••...•_.•.
<-.......,..~ ..~_.
_-"'-"-_V"'''''._'YF--'.;'''''''-:=~ __''_'~---,..,.....,. ---------~-...-- • ..---=~--.-.' . 1 Type:
InventoryPart j Item Name/Number: SheetMusic Description on Purchase/Sales Transactions:
Cost: COGS Account:
Preferred Vendor:
Sales Price:
Tax Code:
Income Account:
Asset Account:
Reorder Point:
Delete thefollowing inventory item:
Harmonicas Sheet Music 3 5075 Cost ofSheet Music Sold Strings, Sheets & Such 6 Tax -Taxable Sales 4075 SaleofSheet Music 1275 Inventory ofSheet Music 50 6. Using theappropriate window,recordthefollowing transactions for May:
May 3 May 3 May 3 lMay3 May 4 May 4 May 7 May 10 May 11 May 11 Purchased 30guitars onaccount fromMusic Instruments, Inc.,at$50 each, theirInvoice No.
GU75998.
Purchased 30keyboards onaccount fromKatie's Keyboards at $75 each, theirInvoice No.10089-30, Purchased 30music stands fromMelody Music Equipment at $20 each, paidimmediately, CheckNo.9.
Do not print check.
Purchased 300sheets ofmusic ofvarious themesfrom Strings, Sheets & Such at$3 each, paidimmediately, Check No.10.Do not print check.
Sold 15guitars for$100 each, 15keyboards for$150 . each, and15music stands for$40 each toJefferson High School. Invoice No.2{)12, terms 2110)Net30Days. In 'addition, provided15hours ofguitar lessons and10 hours of piano lessons.
SoldIf keyboards for$150 eachtoHighland School, Invoice No.2013.; terms 2110,Net30Days. Inaddition, provided 12hciiirsofpiano lessons.
Received full payment frornJefferson HighSchool for Invoice 2009,Check No.30531.
Record theweekly cashsales ofsheet music, 75sheets at $6 each, SaleNo. 2014. Leave the Customer.Job field blank.
Sold 3guitars for$100 each, 3keyboards for$150 each, and 3music stands for$40 each toMulligan Residence, Invoice No.2015, terms 2/10, Net 30Days. Inaddition, provided 5hours ofguitar lessons and7hours ofpiano lessons.
Received fullpayment netofdiscount fromJefferson High School forInvoice No.2012, Check No,30711.
, L " INVENTORY j 5-39 Ch n d Ass n t ter Review May14 Received fullpayment netofdiscount fromHighland School, CheckNo.76115.
May 17 Purchased 20keyboards onaccount fromKatie's Keyboard Companyat$75 each, theirInvoice No.
10758-20.
May 17 Purchased 10music stands fromMelody Music Equipment at$20 each, paidimmediately, CheckNo.II.
Do not print check.
May 17 Record theweekly cashsales ofsheet music, 100sheets at $6 each, SaleNo.2016.
May 21 Sold5guitars for$100 each, 5keyboards for$150 each, and 5music stands toTwin Lakes Elementary, Invoice No. 2017, terms 2/10, Net30Days. Inaddition, provided 8 hours ofguitar lessons and5hours ofpiano lessons.
May 24 Received apayment of$830 fromTwin Lakes Elementary forInvoices 2004and2011, Check No.7266.
May 24 Record theweekly cashsales ofsheet music, 115sheets at $6 each, SaleNo.2018.
May 24 Purchased 300sheets ofmusic ofvarious themesfrom Strings, Sheets, & Such at$3 each, paidimmediately, Check No.12.Do not print check.
May 25 Received fullpayment netofdiscount fromTwin Lakes Elementary forInvoice No.2017, Check No.7384.
May 25 Paidinfull Music Instruments, Inc.(Check No.13).Do not print check.
May 25 Paidinfull Katie's Keyboard Company, InvoiceNo.
10089-30 (CheckNo.14).Donot print check.
May 31 Record theweekly cashsales ofsheet music, 145sheets at $6 each, Invoice No.2019.
May 31 Upon reviewing theinventory, Lynndiscovers thatone guitar isdamaged, throughnofault ofthe manufacturer, and cannot besold. Adjust theinventory onhand to remove theone guitar fromtheinventory. Inv.Adj. I.
May 31 Remit allsales taxes collected tothe PADept. of Revenue, CheckNo.15.
May 31 Deposit allundeposited fundstothe Cash -Operating account.
7. Display andprint thefollowing reportsforMay 1,2014, toMay 31,2014:
a.
Inventory ValuationDetail b. Inventory StockStatus byItem c.
Purchases byItem Detail d.
Sales byItem Detail e.
Journal f.
Profit & Loss Standard (April1,20 14-May 31,2014) g.
Balance SheetStandard 5-40 I CHAPTER 5 CaseProbgem 2 OnJune 1,2014,OliviaChenbegan herbusiness, whichshenamed Olivia's Web Solutions" rn:
the first month ofbusiness, Oliviasetupthe office, provided webpage design andInternet consulting services,andrecorded month-end activity"InJuly, thesecond monthofbusiness, Oliviadecides to purchase andsellinventory itemsofcomputer hardwareandsoftware.
For customers thatpurchase merchandise inventory,theterms ofpayment are 2110, Net30Days" Forillustration purposes,assumean8% sales taxis charged onthe sale ofall inventory items.Thecompany fileincludes the information for Olivia's WebSolutions as ofJuly 1,2014.
1. Open thecompany fileCH5 Olivia's WebSolutions"QBW.
2. Make abackup copyofthe company fileOWS5 [YourName] Olivia's Web Solutions.
3. Restore thebackup copyofthe company file.Inboth theOpen Backup Copy andSave Company Fileaswindows usethefilename OWSS [Your Name] Olivia's WebSolutions.
4. Change theCompany NametoOWS5 [YourName] Olivia's Web Solutions" 5" Add thefollowing inventory itemstothe Item List:
Type:
InventoryPart Item Name/Number:
Scanners Description on Purchase/Sales Transactions:
Cost:
COGS Account:
Prejerred Vendor:
Sales P17ce:
Tax Code:
Income Account:
Asset Account:
Reorder Point:
Type:
Item Name/Number:
Description on Purchase/Sales Transactions:
Cost:
COGS Account:
Preferred Vendor:
Sales Price:
Tax Code:
Income Account:
Asset Account:
Reorder Point:
Delete thefollowing inventory item:
Printers Scanners 300 5065 CostofScanners Sold Scanntronix 600 Tax -Taxable Sales 4065 SaleofScanners 1265 Inventory ofScanners 5 Inventory Part Desktop Publishing Software Desktop Publishing Software 100 5075 CostofDesktop Pub.
Soft. Sold Textpro Software, Inc.
200 Tax -Taxable Sales 4075 SaleofDesktop Pub.Soft.
1275 Inventory ofDesktop Pub. Soft.
5 INVENTORY I 5-41 Ch rRev i nd A sessment 5-42 I CHAPTER 5 6.
Using theappropriate window,recordthefollowing transactions for July:
Jul. 2 Jul. 2 Jul. 2 Jul. 2 Jul. 5 Jul. 6 Jul. 9 . Jul. 12 Jul. 13 Jul. 16 Jul. 16 Jul. 19 Jul. 20 Jul. 26 Jul. 27 Purchased 10computers onaccount fromComputec Computers at$1,000 each,theirInvoice No.068788.
Purchased 20scanners onaccount fromScanntronix at $300 each, theirInvoice No.10089-30.
Purchased 10desktop publishing softwarepackages from Textpro Software, Inc.at$100 each,paidimmediately, Check No.9. Donot print check.
Purchased 20HTML software packages fromInterSoft Development Co.at$75 each, paidimmediately, Check No. 10.Do not print check.
Sold 3computers for$2,000 each,2scanners for$600 each, and1desktop publishing softwarepackagefor$200 on account toLong Island Water Works, Invoice No.
1011, terms 2110,Net30Days. Inaddition, provided 10 hours ofInternet consulting services.
Sold 2computers onaccount toMiguel's Restaurant, Invoice No.1012, terms 2/10,Net30Days. Inaddition, provided 8hours ofWeb pagedesign services, Sold 1scanner for$600 and1desktop publishing soft- ware package for$200 tothe Singh family, Invoice No.
1013. Received paymentimmediately, theirCheck No.
901.
Sold 1computer for$2,000, 2scanners for$600 each, and 1HTML software packagefor$150 onaccount to Breathe Easy,Invoice No.1014, Net30Days. Inaddi- tion, provided 12hours ofInternet consultingservices.
Received fullpayment netofdiscount fromLong Island Water Works forInvoice No.1011, Check No.125671.
Purchased 5computers onaccount fromComputec Computers at$1,000 each,theirInvoice No.072445.
Purchased 5desktop publishing softwarepackages from Textpro Software, Inc.at$100 each,paidimmediately, Check No.11.Do not print check.
Sold 1computer for$2,000 and1desktop publish- ing software packagefor$200 tothe Schneider Family, Invoice No.1015. Received paymentimmediately, their Check No.899.
Sold 3computers for$2,000 each,3scanners for$600 each, and2desktop publishing softwarepackages for $200 eachtoSouth ShoreSchool District, InvoiceNo.
1016, terms 2110,Net30Days. Inaddition, provided 16 hours ofWeb pagedesign services.
Received fullpayment, nodiscount, fromMiguel's Restaurant, forInvoice No.1012, Check No.4110.
Received fullpayment, nodiscount, fromBreathe Easy for Invoices Nos.1006(remaining balance)and1014, Check No.1874. Jul.30 Jul. 30 Jul. 30 Jul. 30 Jul. 31 Jul. 31 Purchased 5computers onaccount fromComputec Computers at$1,000 each,theirInvoice No.073111.
Paid infull Computec Computers InvoiceNo.068788 (Check No.12).Donot print check.
Paid infull Scanntronix, InvoiceNo.10089-30 (Check No. 13).Donot print check.
Upon reviewing theinventory, Oliviadiscovers one HTML software packagewasdamaged, throughno fault ofthe manufacturer, andcannot besold. Adjust the inventory onhand toremove theone HTML software package fromtheinventory. Inv.Adj. 1 Remit allsales taxes collected toNew York State, Check No. 14.
Deposit allundeposited fundstothe Cash -Operating account.
7. Display andprint thefollowing reportsforJuly 1,2014, to July 31,2014:
a.
Inventory ValuationDetail b.
Inventory StockStatus by Item c.
Purchases by Item Detail d.
Sales by Item Detail e.
Journal f.
Profit & Loss Standard (lune1,2014-July 31,2014) g.
Balance SheetStandard INVENTORY I 5-43
