Question

Setup a new company in QuickBooks using the followinginformation.

OnJanuary 1, 2021, you establish a law firm. You’ve been offered twocontracts on retainer for two local businesses. With the twocontracts and walk-in clients, you think you can make your lawpractice a success. At the current time, you do not plan to hireany employees. Instead, you plan to perform the services yourself,at least initially until cash flow from the business can fundemployee payroll.

CompanyName	[your name]Comp Exam 1
Federal Tax ID	123-45-6789
Address	12 Elm Street
City	Woodbury
State	NJ
Zip	08096
Phone	856-222-3333
Industry	Legal Services
Income Tax Form	Sole Proprietor (FORM1040)
Fiscal year starts	January 1, 2021
Checking Account	[your name] Comp Exam 1Checking

Then, after you have set up yourcompany, you need to add three sets of information.

First, you need to add the people you do business with. You willadd the following 2 customers and 3 vendors using the followinginformation.

CustomerName/ Company Name	AirlineTransport
Address	40 George Blvd Cherry Hill, NJ 08033
Contact	Mary
Telephone	609-833-2904
Terms	Net 30

CustomerName/ Company Name	CADExpress
Address	1234 Middle Ct Haddonfield, NJ 08033
Contact	Lori
Telephone	856-556-7766
Terms	Net 30

VendorName/ Company Name	AAEquipment Leasing
Address	72 Long Lane Vineland, NJ 08445
Telephone	609-555-1234
Terms	Net 30

VendorName/ Company Name	Able OfficeSupplies
Address	900 Truman Blvd Marmora, NJ 08229
Telephone	609-376-1356
Terms	Net 30

VendorName/ Company Name	BayAdvertising Agency
Address	55 Inlet Street Ocean City, NJ 08226
Telephone	609-376-5555
Terms	Net 30

Then, you will add this informationto the Services you sell.

LegalConsultation (hourly)	$120 per hour	Account: 45400
Monthly Retainer	$1000 per month	Account: 45400

Then, you will add banking information as follows: You’ll need toadd a Business Checking Account (current asset account, #10100).Use the numbers “123456789” as both bank account numbers androuting numbers. Your account will be named “[your name] Comp Exam1 Checking”, dated 1/1/2021, with a $0 balance.

Part II

Record the following transactionsin QuickBooks for the new company.

Date	Transaction
01/01/2021	You invested $1,500cash in the business (Check No. 1000).
01/01/2021	Leased officefurniture for the business. Received the bill and paid one month’srental ($110 check) to AA Equipment Leasing.
01/01/2021	Billed monthlyretainer fees to both clients: Airline Transport and CADExpress.
01/02/2021	Purchased $150of office supplies on account from Able Office Supplies.
01/10/2021	Paid $540 fromyour business checking account to United States Post Office (USPO)postage expense for mailing brochures to potential clients.
01/12/2021	Provided 2 hoursof legal consultation to walk-in client. She paid cash at end ofmeeting today. Deposited into business checking account.
01/15/2021	Received billfrom Bay Advertising Agency for $200 of advertising expenses.
01/16/2021	Received paymentfrom Airline Transport for monthly retainer fee as billed on01/01/2021. Deposited check # 444 into your business checkingaccount.
01/20/2021	Received paymentfrom CAD Express for monthly retainer fee as billed on 01/01/2021.Deposited check #888 into business checking account.
01/25/2021	Paid $150 forthe office supplies purchased from Able Office Supplies on01/02/2021.
01/28/2021	Provided onehour of legal consultation today to walk-in client. Client paidcash and deposited funds.

Part III

Generate the following reportsusing QuickBooks. Convert them to Excel.

a. Journal from January 1, 2021 toJanuary 31, 2021.

b. Trial Balance at January 31,2021.

c. Profit and Loss, standard, fromJanuary 1, 2021 to January 31, 2021.

d. Balance Sheet, standard, atJanuary 31, 2021.

e. Statement of Cash Flows forJanuary 2021.

f. Customer Balance Detail

g. Vendor Balance Detail