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Use Quick Books to complete the following activity:

Having just completed your second year of college studying business and accounting, you are looking for summer employment when you run across an ad from a Jessica Gil, a local CPA, who is in need of part-time help. After an hour-long interview you get the job and are anxious to apply your newfound knowledge in accounting to help a business gain success.

Jessica has just taken on a new client, Boston Catering, a catering firm located in Cambridge, Massachusetts, that provides catering services to businesses in the Cambridge and Boston area. So far, they have been manually keeping their accounting records, but wish to convert to Quick Books Accountant starting July 1, the beginning of their fiscal year. Jessica would like you to spearhead this effort by creating a Quick Books Accountant file containing their existing customers, vendors, and employees and then entering their business events in July.

• The companys federal tax ID is 99-2158715 and state tax ID is 4513-41.
• They are located at 305 Hampshire Street, Cambridge, MA 02139 with a phone number 617-555-2806.
• The company is organized as a corporation and sells both services and products.
• They do not sell products online, do charge sales tax of 5% on all items which is paid to the Massachusetts Department of Revenue, but do not create estimates and do not use sales receipts because all products and services are invoiced.
• Statements and progress invoices are not used but they do wish to use Quick Books Accountant to manage the bills they owe.
• They do not print checks, but do keep track of inventory (change standard inventory account to food inventory) and accept credit cards.
• Customers of this catering business are billed a fixed fee, but the company wants to keep track of hourly employees hours so they have chosen to track time in Quick Books Accountant.
• They will need a chart of accounts and will starting using Quick- Books Accountant 7/1/2010.
• The companys existing bank account is with Bank of America in Cambridge. The 6/30/2010 statement reveals an ending balance of $8,345.

Any additional accounts already present in your file are to remain as is except for the Inventory Asset account which should be changed to Food Inventory. You decide to not sign up for an account at intuit.com and to set up preferences exactly as you did in Chapter 6.

Create a new company using Quick Books Accountants Easy Step Interview. Use Boston Catering Ch 6 Ex 1 as the Company Name. The company is in the general service based industry. Each sale is recorded individually, using the U.S. dollar. They have W-2 employees. (Hint: be sure to set up your sales tax item information now for use in later exercises.) Print an Account Listing report after removing the description and tax lines and then create a backup file with the name Boston Catering

You decide to use the following income and expense accounts:

Account Name	Type
Bar Sales	Income
Catering Sales	Income
Bar Purchases	Cost of Goods Sold
Food Purchases	COGS
Restaurant Supplies	COGS
Advertising and Promotion	Expense
Bank Service Charges	Expense
Depreciation Expense	Expense
Insurance Expense	Expense
Payroll Expense	Expense
Professional Fees	Expense
Rent Expense	Expense
Telephone Expense	Expense
Uniforms	Expense
Utilities	Expense

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