Reference no: EM132476972
Case Problem - On June 1, 2019, Olivia Chen began her business, Olivia's Web Solutions. All daily activities for the month of June-including entering and paying bills, writing checks, recording of sales (both cash and on account), collection of receivables, and depositing receipts-have been recorded. It is the end of the first month of business; the adjusting journal entries need to be recorded, and financial statements need to be printed. You will record the adjusting journal entries for June 30 using the information provided below. The company file includes the account balances for Olivia's Web Solutions based on the transactions recorded in Chapters 2 and 3.
1. Open the company file CH4 Olivia's Web Solutions.QBW.
2. At the QuicicBooks Desktop Login window, in the Password text box, type Student1 and then click OK.
3. Make a backup copy of the company file and name it OWS4 [Your Name] Olivia's Web Solutions.
4. Restore the backup copy of the company file. In both the Open Backup Copy and Save Company File as dialog boxes, use the file name OWS4 [Your Name] Olivia's Web Solutions and enter the password.
5. Change the company name to OWS4 [Your Name] Olivia's Web Solutions.
6. Add the following accounts to the Chart of Accounts List:
Type: Expense
Number: 6300
Name: Computer Supplies Expense
Type: Expense
Number: 6325
Name: Office Supplies Expense
Delete the following account: Repair Expense
7. Display and print the Trial Balance report before preparing the adjusting journal entries (June 1, 2019-June 30, 2019
8. Use the information below to prepare adjusting entries. Record each adjusting journal entry separately, and use June 30, 2019, for the date.
a. The prepaid insurance represents a one-year policy. Record insurance expense for one month. Refer to the trial balance to determine the amount in the Prepaid Insurance account. For Entry No., use AJE1.
b. The prepaid advertising represents a six-month contract. Record the advertising expense for one month.
c. Monthly depreciation on the assets: $75 for the Computer, $50 for the Furniture, and $100 for the Software. Record each depreciation expense as a separate adjusting journal entry.
d. The computer supplies on hand total $350. Compare this amount with the amount in the Computer Supplies account to determine how much of the computer supplies has been used and then record the computer supplies expense.
e. The office supplies on hand total $325. Compare this amount with the amount in the Office Supplies account to determine how many of the office supplies have been used and then record the office supplies expense.
f. The interest on the note payable for one month is $52. Record the interest expense. Add to the Chart of Accounts List the Interest Payable account Other Current Liability, number 2030.
9. Display and print the following reports for June 30, 2019:
a. Adjusted Trial Balance (worksheet): Change Interest Expense to $25 (June 1, 2019-June 30, 2019).
b. Journal: Only the adjusting journal entries: (June 30, 2019- June 30, 2019).
c. Trial Balance: Change name in header of the report to Adjusted Trial Balance (June 1, 2019-June 30, 2019).
d. Profit & Loss Standard (June 1, 2019-June 30, 2019).
e. Balance Sheet Standard (June 30, 2019).