Understanding Financial Statements and Sales Activity in

School: Eastfield College - Course: ACCT MISC - Subject: Accounting

3.Identify the appropriate financial statement classifications for the following QBO ac- countcategory types . a.Accounts Receivable b.Other Current Liabilities c.Cost of Goods Sold d.Bank e.Fixed Assets 4.Identify the appropriate QBO accountcategory type for the following general ledger accounts in a law firm. a.Prepaid expenses b.Interest payable c.Gain on sale of office equipment d.Office furniture e.Accumulated depreciation f.Inventory 5.What are the steps for opening multiple QBO windows in your browser? 6.Using theSearch function, determine how many transactions have occurred between Books by Bessie (a customer) and Craig's Design and Landscaping Services. 7.Create aJournalreport. Set thereport periodasAll Dates . Filter the report to only in- cludejournal entry transaction types . What is the total in the debit column? 8.Would you be able to find the following on the navigation bar, the icon bar, or both? a.Balance sheet report? b.Form for recording a cash sale? c.Past transactions with employees? d.List of Products and Services? 9.Create aProfit and Lossreport forAll Dates . Collapse the report and export the report to PDF. 10.Open theCreate menu. How many different types of vendor transactions (financial transactions) can be created in QBO? 1-38 Section OneIntroduction © 2019 Cambridge Business Publishers

1/7/19 ■ ✓Sally gives you a check from Dew Drop Inn for $180 for some work she did for the com- pany today. There were some software issues. Sally spent three hours fixing the file. The check (#8134) is dated 1/7. •You create a sales receipt (#101) for the three hours of file repair (Fix). ■ ❍You make sure to use Undeposited Funds as theDeposit toaccount. You'll be depositing checks in batches. ■ ✓Sally also gives you a list of all of her hours from last week. She did not collect payment from any of these customers so you prepare invoices dated 1/7, with credit terms of Net 15, as follows: •Lou's Barber Shop—Set Up—12 hours ($600, Invoice #1006) •Alki Deli—Set Up—10 hours ($500, #1007) •Uptown Espresso—Train5 hours ($200, #1008) 1/8/19 ■ ✓Sally is always looking for ways to grow her business. She decides to offer a Software Workshop on January 18th. She will be offering tips on software selection and will be demonstrating some of the software products she expects to start selling in February. She's going to charge participants $75 for the afternoon. A couple of her college friends have agreed to help out with what she hopes is a large crowd. •You decide to track the revenue from the workshop in a newincomeaccount (Work- shop Fees). You set the account up using 415 as the account number. ■ ❍TIP:You can useService/Fee Incomeas theDetail Type. •You set up a newcategorycalledWorkshops and Seminars. ■ ❍TIP:If you don't havecategoriesin your homework company file, refer to Ap- pendix 3A. •You also set up a newservice item. Sally is calling the workshop "Picking the Right Software" so you decide to name the itemPicks. You set it up in theWorkshops and Seminars category. ■ ❍You enter "Picking the Right Software Workshop" as the description and 100 as thesales price/rate. ■ ❍You select Workshop Fees 415 as theincome account. 1/10/19 ■ ✓You receive two checks in the mail.TIP:Make sure you use 150 Undeposited Funds as theDepositto account for both. •Check #1998 from Champion Law, dated 1/10, for $200 on Invoice #1001. ■ ❍You call Lawrence (the accountant at the law firm) and remind him that the total amount due was $280. He apologizes and promises to pay the balance before the end of the month. •Check #3751 from Lou's Barber Shop, dated 1/10, for $250 full payment of invoice #1004. ■ ✓You deposit the checks received today with the check received last Friday. The total de- posit is $630. 1/14/19 ■ ✓The Operations Manager at Butter and Beans calls. The software Sally helped to select is ready for installation. The company would prefer to be billed for the entire cost in one invoice. Sally estimates that theSet upwork will take 40 hours. (It's a complicated sys- tem to set up.) You invoice Butter and Beans for the $2,000 and give them 30-day terms as agreed to by Sally. (Invoice # 1009).