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Part I

Set up a new company in QuickBooks using the following information.

On January 1, 2021, you establish a retail store that specializes in flower arrangements and floral services.

Company Name	[your name] Comp Exam 2
Legal Name	[your name] Comp Exam 2
Federal Tax ID	12-1234567
Address	222 Main St
City State	Sanderson, CA
Phone	415-258-1356
Zip	94355
Industry	Retail Shop or Online Commerce
Company Type	S Corporation
What do you sell?	Both products and services
Estimates	Yes
Billing Statements	Yes
Progressive Invoicing	Yes
Track Time Also Track Sales Orders/Inventory/Bills	Yes
Fiscal year starts	January 1, 2021
Checking Account	[your name] Comp Exam 2 Checking

Customers and vendors using the following information.

Vendor Name/Company Name	Flowersbyweb
Address	19 Web Lane Bayshore, CA 94326
Contact	Herman
Telephone	415-555-4567
Terms	Net 30

Vendor Name/Company Name	Baskets Galore
Address	444 Weavers Avenue Bayshore, CA 94326
Contact	Hope
Telephone	415-555-8901
Terms	Net 30

Vendor Name/Company Name	EZ Rental
Address	14 Appleton Blvd. Bayshore, CA 94326
Contact	Robert
Telephone	415-555-4590
Terms	Net 30

Customer Name/Company Name	St Lukes Church
Address	330 Third St Bayshore, CA 94326
Telephone	415-555-1234
Terms	Net 30
Tax	Non

Customer Name/Company Name	Missy Benson
Address	923 Maple Lane Bayshore, CA 94326
Telephone	415-555-4321
Terms	Net 30
Tax	Tax

Customer Name/Company Name	Ellen Johnson
Address	9012 Olive Blvd Bayshore, CA 94326
Telephone	415-555-0987
Terms	Net 30
Tax	Tax

Add the following information to the Item List. All are taxable.

Item Type	Inventory Part
Item Name/Description	Basic Floral Kit
Income Account	Merchandise Sales
Quantity on Hand	0
Cost	$20
Sale	$50

Item Type	Inventory Part
Item Name/Description	Deluxe Floral Kit
Income Account	Merchandise Sales
Quantity on Hand	0
Cost	$28
Sale	$65

Item Type	Inventory Part
Item Name/Description	Roses (per dozen)
Income Account	Merchandise Sales
Quantity on Hand	0
Cost	$10
Sale	$35

Item Type	Service
Item Name/Description	Floral Design
Income Account	48600 Service Sales (add acct if necessary)

Item Type	Service
Item Name/Description	Wedding Designs
Subitem of	Floral Designs
Income Account	48600 Service Sales
Rate	$25
Tax	Tax

Item Type	Service
Item Name/Description	Funeral Designs
Subitem of	Floral Designs
Income Account	48600 Service Sales
Rate	$20
Tax	Tax

State tax rate is 7.75%. The tax agency is California State Board of Equalization

After displaying account numbers, modify or add the following accounts, including the appropriate tax line, to the chart of accounts for the new QuickBooks company.

10100	[your name] Comp Exam 2 Checking Tax line: B/S Assets: Cash	Opening balance: $0 As of 1/1/2021
14400	Industrial Refrigerator	B/S-Assets: Buildings/oth. depr. Assets
14500	Industrial Refrigerator Cost (Subaccount of Industrial Refrigerator)	B/S-Assets: Buildings/oth. depr. Assets Opening balance: $5,000 as of 1/01/2021
14600	Acc Depr-Industrial Refrigerator (Subaccount of Industrial Refrigerator)	B/S-Assets: Buildings/oth. depr. Assets Opening balance:$ 0 as of 1/01/2021

You decide to hire someone (Beth Kochan) to help run the store. Configure QuickBooks for the processing of payroll manually.

Enter payroll information for Beth Kochan

Compensation type	Hourly
Your company does not provide	Insurance benefits Retirement benefits Paid time off
Employee	Beth Kochan
Address	555 Wayside Dr Bayshore, CA 94326 SSN 987-65-4321
Telephone	415-555-5827
Hired Date	1/2/2021
Pay Period	Bi-monthly (on 15th and 31st)
Hourly rate	$10.00
State tax	CA California (only)
Federal and State Filing Status	Single
Federal and State Allowance	1
Wage Plan Code	S (State Plan for Both UI and DI)
CA Disability Employee Rate	1.0%
CA-Employment Training Tax	0.1%
CA Unemployment	1.5%
Form 940 and Form 941 payment schedule	Quarterly
CA withholding and disability insurance payment schedule/CA UI and Employment Training Tax
Payee	EDD
CA Employment Development Dept Employer Acct. No.	999-9999-9
Payment frequency	Quarterly
Hint for problem	Only withhold FIT/FICA/SIT from Beths check

Part II

Record the following transactions in QuickBooks for the new company. Reminder: Print your company name on all checks.

Assume the following rates for payroll withholdings.

Federal income tax	10.00%
Social security (employee and company)	6.20%
Medicare (employee and company)	1.45%
State (CA) income tax	5.00%

Date	Transaction
01/01/2021	You invest $6,000 (check number 101) in the business. Took out a bank loan for $12,000. This will be repaid within 1 year. (account number 26100 Note Payable-Bank) Received the bill and paid one months rental ($250) to EZ Rental. Ordered 10 Basic Floral Kits and 5 Deluxe Floral Kits from Baskets Galore.
01/03/2021	Received all 10 Basic Floral Kits and all 5 Deluxe Floral Kits ordered on 01/01/2021 from Baskets Galore
01/06/2021	Ordered 5 dozen roses from Flowersbyweb.
01/07/2021	Provided an estimate of 12 Wedding Design Arrangements for Missy Benson
01/07/2021	Received bill from Baskets Galore for 01/01/2021 order. Received order in full from Flowersbyweb and also received invoice.
01/9/2021	Sold 1 Funeral Design Arrangement to St Lukes on account.
01/10/2021	Awarded job from Missy Benson.
01/13/2021	Sent Missy Benson invoice for completing half of the job.
01/13/2021	Paid Baskets Galore in full for merchandise ordered on 01/01/2021. Paid Flowersbyweb for goods ordered on 01/06/2021.
01/14/2021	Received payment from St Lukes (check no. 350) and deposited the funds.
01/15/2021	Received payment from Missy Benson for job above (check no. 1015) and deposited funds. Paid Beth for this pay period. For this pay period Beth worked 20 hours.
01/20/2021	Went to Office Depot for office supplies wrote $35 check from business account to cover it.
01/21/2021	Sent Missy Benson invoice for completing the job.
01/22/2021	Sent reminder statements to outstanding customer accounts.
01/28/2021	Received payment from Missy Benson for completing job (check no. 1022) and deposited funds.
01/30/2021	Sold 1 dozen roses to Ellen Johnson (cash sale).
01/31/2021	Paid Beth for this pay period: 15 hours.
01/31/2021	Sold 25 Wedding Designs and 3 dozen Roses to St Lukes Church for cash and deposited these funds along with all undeposited funds.

Part III
Complete all tasks below. Convert all applicable reports to Excel.
1.	Run the payroll summary report as of 01/31/2021.
2.	Run the Unadjusted Trial Balance at January 31, 2021. Convert to Excel and submit
3.	Make the following adjusting entry:
	a. Industrial Refrigerator depreciation expense is $75 per month.
4.	Print the following reports using QuickBooks. Convert to Excel and Submit to your Instructor:
	a. Journal from January 1, 2021 to January 31, 2021.
	b. Adjusted Trial Balance at January 31, 2021.
	c. Profit and Loss, standard, from January 1,2021 to January 31, 2021.
	d. Balance Sheet, standard, at January 31, 2021.
	e. Statement of Cash Flows for January 1, 2021 to January 31, 2021.
	f. Customer Balance Detail for January 1, 2021 to January 31, 2021.
	g. Chart of accounts.
	h. Vendor Balance Detail
5.	Create and convert to Excel a Profit and Loss Budget for 2021 based on the following information.
	a. January projected merchandise sales: $400
	b. Monthly expected sales increase: 3% (compounding)
	c. Monthly rent increase: 1% (compounding, Januarys rent $200)

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