BUSN10239 Case Study Due: Sunday December 12, 2021 in MyCanvas (Weighted at 12.5% of your Final Mark) / 30 marks How to hand your assignment in? If you are preparing your assignment with a partner,...

I can give you access to my Quickbooks account


BUSN10239 Case Study Due: Sunday December 12, 2021 in MyCanvas (Weighted at 12.5% of your Final Mark) / 30 marks How to hand your assignment in? If you are preparing your assignment with a partner, only one student will hand in the Assignment and clearly mark each of the Student names and student numbers on the face of the Assignment. However, each person needs to do their own work in Quickbooks. ASSIGNMENT: You are a business owner who started your own business in 2020. You have decided to set up your accounting system using Quickbooks after taking a Mohawk computer’s class. Instructions: 1) Logging in Once you receive the link from Quickbooks, register using your school email address. Even if you are working with a partner, each person should create their own Quickbooks account and do the work in their own account. Create your own company name which incorporates your name (or both partners’ names). Use the college’s address: 135 Fennell Ave. Hamilton, Ontario L9C 0E5 Under the My Accountant tab, enter my email address [email protected] 2) Creating your Books Click on Accounting and view the existing Chart of Accounts. There will be some accounts created automatically by Quickbooks. Next, add accounts that you will need to do your accounting. Click New and choose the appropriate Account Type, Detail Type and Name as required. Enter the balances per the Chart of Account Balances below. Entering an Account Example: When entering the Fixed Asset account use the following info: Account Type: Property Plant & Equipment Detail Type: Furniture and Fixtures Name: Furniture and Fixtures Original Cost: $11,000 as of 31/12/2020 Accumulated Depreciation: $1,400 as of 31/12/2020 Entering Fixed Assets Example: Chart of Accounts Balances Enter the following as your account balances: Your Name (create your own) Chart of Accounts and Opening Balances At January 1, 2020 ASSETS: DEBITS CREDITS Bank $ 163,710.00 Accounts Receivable Inventory $ 98,000.00 Prepaid Insurance $ 1,100.00 Furniture and Fixtures $ 11,000.00 Accumulated Dep - Furniture and Fixtures $ 1,400.00 LIABILITIES: Accounts Payable Commissions Payable $ 1,130.00 Federal Tax Payable $ 1,204.00 CPP Payable $ 183.00 Bank Loan Payable, due in 2 years $ 33,000.00 OWNER'S EQUITY: Capital Investment $ 200,000.00 Withdrawals $ 16,000.00 Retained Earnings/Opening Capital $ 52,893.00 TOTAL $ 289,810.00 $ 289,810.00 Important to Note: A) The retained earnings cannot be entered. It will come up automatically as Opening Balance Equity. B) Capital Investment may be called Owner’s Equity C) Enter the Withdrawals account as a negative. D) If you cannot add a bank balance to the existing Bank account, simply create a new account and call it Cash so you can differentiate the two accounts on your Balance Sheet. See the below screenshot to help with the creation of a new Cash account: If Quickbooks does not allow you to add an Inventory balance, delete the existing account that Quickbooks automatically created (only if the balance is zero) and create a new one. Make sure it is in the Current Accounts section, detail type should be Inventory. You can then enter the balance. See the following screenshot. You will also need to add the following Income Statement accounts: When creating your sales accounts use the name of the products your company sells. For example if your company is a sporting goods company specializing in hockey equipment, create accounts called, Sales – Skates, Sales – Hockey Sticks, Sales – Helmets. Use any type of Sales account based on your own company/industry. REVENUE: Sales - Category 1 Sales - Category 2 Sales - Category 3 Discounts Refunds and Allowances COST OF GOODS SOLD: Inventory - Used Shipping & Freight EXPENSES: Advertising Commission Exp Insurance Interest Office Supplies Rent Salaries Telephone Utilities Depreciation Expense – Furniture &Fixtures 4) Check your work. Run a balance sheet and check the balances. To run a report, go to Reports. In the Recommended tab see Balance Sheet. Click on Balance Sheet. Ensure your report dates capture the full period. Example, To date should be end of the month. 5) Create the following Journal Entries using the General Journal Module only. These journal entries are for the month of January 2020. 1) Cash sales – sold Product 1 to Charlie Brown of $5,000 2) Cash Sales – sold Product 2 to Mia Lamosa of $15,000 3) Credit Sales – sold Product 3 on credit to Maurice LaMore $11,000 to be paid net60 4) Used cash to buy Office Supplies to be used this month $250 5) Used cash to pay for Utilities bill $413 6) Advertising Invoice paid by Cheque #007 $650 7) Insurance Invoice paid by Cheque #008 (paid in advance the next 12 months) $2,130 8) Owe the bank for Interest Expense on Bank Loan $1200 9) Record the Inventory used for the month $9,000 10) Record Depreciation Expense on Fixed Asset at 20% of the cost of the Asset 11) Paid customer a refund on Sale – Product 2 $6,000 for broken part. Paid by Cheque #009 Journal entries are created by clicking on the + sign at the top right hand corner of your screen. Under Other see Journal Entry. Click on it and enter the information. Decide on which account you need to Debit and which account you need to Credit. All dates should occur within the same month. Once the Journal Entry has been created click the green button at the bottom right hand corner of your screen Save and Now. Conceptual Understanding Questions in Small Business Once all Journal Entries are completed, run your Income Statement and Balance Sheet for the month January 2020 to review your financial standing. Look them over, understand them and answer the following questions. Add the Financial Statements and your journal entries along with this document to the dropbox in MyCanvas by December 12, 2021 at 11:59 pm. 1) Based on your Income Statement what was your Gross Profit in dollars and Gross profit %. Show your calculation here: (2 marks) Answer: Calculation: 2) What would happen to gross profit if Cost Of Goods Sold increased by 12% (2 marks) Answer: Show Calculation: 3) Based on your income statement, calculate Net Profit and Profit margin (%). (2 mark) Show Calculation: Answer: ____ Comment on if your profit is healthy for your industry. Explain your answer (1 mark) ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 4) In the month of January, you paid a cheque for $2,130 to the insurance company for insurance for the next 12 months. a) What was your journal entry in January? (2 mark) b) What entry will you do at the end of February? (2 mark) Month Account Name Debit Amount Credit Amount 5) What is the total of your Receivables account at the end of January 2020? (1 mark) Answer: 6) Mia Lamosa returned $6,000 worth of product due to a broken or malfunctioning product. You provided a refund. How do returns and allowances affect profit? (1 mark) ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 7) Take a look at the Equity section of your Balance Sheet. What is the maximum amount you could withdraw from your company without putting your company at financial risk? Explain your answer. (2 mark) Answer: 8) Download your Balance Sheet, Income Statement and Journal Entries from Quickbooks (15 marks) (Financial Statements worth 10 marks, journal entries worth 5 marks) Once you have answered all the above questions hand in this document along with a copy of your Balance Sheet, Income Statement and Journal Entries (from Quickbooks) in MyCanvas If you are in a partnership, one person from your group hands in the Assignment.