Republic of the Philippines

CARLOS HILADO MEMORIAL STATE COLLEGE

CBMA, Fortune Towne Campus, Brgy. Estefania, Bacolod City

BOSTON CATERING

Having just completed your second year of college studying business and accounting, you are looking for summer
employment when you run across an d from a Jessica Gil, a local SPA, who is in need of part-time help. After an
hour-long interview you get the job and are anxious to apply your new found knowledge in accounting to help a
business gain success. Jessica has just taken a new client, Boston Catering firm located in Cambridge and Boston
area. So far they have been manually keeping their accounting records but wish to convert to QuickBooks starting
July 1, the beginning of their fiscal year. Jessica would like to spearhead this effort by creating a QuickBooks file
containing their existing customers, and vendors and then entering their business events in July.

The company is located at 305 Hampshire Street, Cambridge, MA 021139 with phone number 6175552806. It is
organized as a corporation and sells both services and products.

- They do not sell product on line

- Charges sales tax of 5% on all items which is paid to the Massachusetts Department of Revenue
- Do not create estimates
- Statements and progress invoices are not used
- Use QuickBooks Accountants to manage bills they owe.
- They do not print checks
- Keep track of inventory (change standard inventory account to food inventory
- They accept credit cards
- Customers of catering business are billed fixed fee.
- Employees are paid on a per hour basis

Company Name : Surname Yr/Sec – Boston Catering, Inc. (Ex. Laguyo 4A – Boston Catering, Inc.)
Industry : Restaurant Caterer or Bar
Company Type : Corporation
Tax ID# : 99-2158715
Employees : Yes
Legal name : Same with company name
Address : 305 Hampshire Street
City : Cambridge
State : MA
Zip : 02139
Country : US
Phone : 617-555-2806
Email : leave blank
Website : leave blank

The company’s existing bank account is with Bank of America. The June 30, 2020 statement reveals an ending
balance of P8,345.
The following income and expense account are to be used:

Account Name Type

Bar Sales Income
Catering Sales Income
Bar Purchases Cost of Goods Sold
Food Purchases Cost of Goods Sold
Restaurant Supplies Cost of Goods Sold
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
Uniform Expense Expense

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 Republic of the Philippines
CARLOS HILADO MEMORIAL STATE COLLEGE
CBMA, Fortune Towne Campus, Brgy. Estefania, Bacolod City

Utilities Expense Expense

Ask My Accountant Other Expense

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.
The following customers are to be added:
Customers:

MA General Hospital Fidelity Investments John Hancock

Address 55 Fruit St. 1 Devonshire St. 601 Congress St.

City Boston Boston Boston
State MA MA MA
Zip 02114 02109 02210
Phone 617-555-2000 617-555-1000 617-555-3000
Beginning Balance 7,000 8,000 9,000
Terms Net 30 Net 30 Net 30
Sales Tax Item Sales Tax 5% Sales Tax 5% Sales Tax 5%
- Generate Customer Balance Summary report as of 6/30/2020
- Generate Customer Contact List

Vendors
Sanford Winery Fiddlehead Cellare US Food Service

Address 5010 Santa Rosa Rd. 1597 East Chesnut Ave. One Technonoly Dr.
City Lompoc Lompoc Peabody
State CA CA MA
Zip 93436 93436 01960
Phone 805-555-5900 805-555-0204 978-555-9100
Beginning Balance 2,000 3,000 4,000
Terms Net 30 Net 30 Net 30
- Generate Vendor Balance Summary as of June 30, 2020
- Generate Vendor Contact List

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 Republic of the Philippines
CARLOS HILADO MEMORIAL STATE COLLEGE
CBMA, Fortune Towne Campus, Brgy. Estefania, Bacolod City

ITEMS

# Type Description Vendor Cost Price/Unit Income Account Quantity

A100 Service Appetizer Heavy - - 18.00 Catering Sales -

A200 Service Appetizer Light - - 12.00 Catering Sales -
S100 Service Spring Supper - - 35.00 Catering Sales -
S200 Service Summer Supper - - 40.00 Catering Sales -
S300 Service Fall Supper - - 65.00 Catering Sales -
S400 Service Winter Supper - - 50.00 Catering Sales -
D100 Service Desserts - - 6.00 Catering Sales -
P100 Service Pastries - - 5.00 Catering Sales -
W100 Inventory Part Sanford Chardonnay Sanford Winery 45.00 60.00 Bar Sales 25.00
W200 Inventory Part Fiddlehead Pinot Noir Fiddlehead Cellars 50.00 65.00 Bar Sales 30.00

- Generate Item Listing Report for Service Items

- Generate Item Listing Report for Inventory Parts

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 Republic of the Philippines
CARLOS HILADO MEMORIAL STATE COLLEGE
CBMA, Fortune Towne Campus, Brgy. Estefania, Bacolod City

OPENING BALANCE

The following account and the corresponding balances as of June 30, 2016 are to be added:

Account Name Amount Account Type

Prepaid Insurance 3,000 Other current assets

Furniture and Equipment 62,030 Fix Assets
Accumulated Depreciation (2,030) Fix Assets
Notes Payable 50,000 Long Term Liability
Instruction:

1. Process and Generate the following reports:

- customer balance detail
- vendor balance detail
- trial balance as of July 1, 2020. Account balances are as follows:

2. Make journal entry dated July 1, 2016 to adjust the opening balance equity and Retained Earnings to zero
and capital stock to 38,970

EMPLOYEES:

You need to generate two new payroll items: Salary ad Hourly, which both track to a Payroll Expense
account. Payroll is paid monthly at the end of the month. All employees are subject to Medicare, Social Security,
and Federal Unemployment. Federal Taxes and state unemployment taxes are paid quarterly. All state taxes are
paid to Massachusetts Department of Revenue quarterly. The company’s state unemployment is 3%. The
company is also subject to a workforce training fund tax of .01%. (Note: use this information even if the
QuickBooks Accountant software warns you about account number and payees.) Make sure you set up your
company file to use manual calculations and then add the following employees:

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 Republic of the Philippines
CARLOS HILADO MEMORIAL STATE COLLEGE
CBMA, Fortune Towne Campus, Brgy. Estefania, Bacolod City

Name Nathan Chambers Kyle Hain Amy Casey

Address One Leighton St. 101 Canal St. #9 1449 Main St. #30
City Cambridge Boston Waltham
State MA MA MA
Zip 02141 02114 02451
Phone 617-555-9822 617-555-0905 617-555-1234
SS# 154-74-8745 541-84-7312 641-87-9825
Earnings 50,000/yr 16/hr 18/hr
Filing Status Single Single Married
Type Regular Regular Regular

Note: Generate an Employee Contact List report with phone number

The following transactions were finished for the month of July 2020.

a. Cash-oriented financing activities

July 6 The company sold 1,000 shares of common stock to Board Investments, a new private
investor, for 50,000, Funds were deposited directly into the company’s checking account on
the same date on their check 23413.

July 8 The company borrowed 25,000 from Bank of America at 8% due in 4 years. Bank of America’s
check 823908 was deposited directly into the company’s checking account on the same date
after the company signed the long-term loan payable.

b. Recording Cash-oriented Inventing Activities

July 13 The company purchased new equipment for 3,000 using check 1501 from Outlet Tool
Supply, a vendor.

July 15 The company invested 5,000 on a short-term basis with an investment firm named North
Eastern Investments using check 1502

c. Cash-oriented operating Activities – Sales

Add the following transactions and then print a standard balance sheet as of 7/31/2016 and a
standard income statement for the month ended 7/31/2016

July 14 The company received check 25141 from MA General Hospital in the amount of 7,000 as
payment on account. Amount was deposited to the bank on July 16, 206.
To record cash collected on account:

July 16 The company recorded sales receipt 930 for a new customer MIT, terms due on receipt,
for 50 item A100 and 50 item A200, delivered. On the same date they received check
523420 from MIT in the amount of P1,500 as payment in full. Amount was deposited to
the bank the same day.

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 Republic of the Philippines
CARLOS HILADO MEMORIAL STATE COLLEGE
CBMA, Fortune Towne Campus, Brgy. Estefania, Bacolod City

Note: At this point, the chart of account has Undeposited Funds account with a balance of
8,575.

d. Cash oriented Operating Activities – purchases

July 5 the company ordered 24 bottles of item W100 from the Sanford Winery on purchase
order 101.
July 7 the company ordered 48 bottles of new item W201 (Fiddlehead Syrah, Cost P25, Sales
Price P40) from Fiddlehead Cellars on purchaser order 102.

July 28 the company ordered 12 bottles of new item W300 (Foley Pinot Noir, Cost P50, Sales Price
P70) from new vendor Foley Estates (6121 Hwy. 246, Lompoc, CA 93436) on purchase
order 103 with terms net 15.

Note: you have to add new supplier and new item

July 22 the company received the 24 bottles of item W100 from Sanford Winery; they had been
ordered using purchase order 101 along with a bill due in 30 days.

July 29 the company received the 48 bottles of item W201 from Fiddlehead Winery; they have
been ordered using purchase order 102 along with a bill due in 30 day.

e. Cash-Oriented Operating Activities – Expenses

Record the following transactions:

Jul. 15 the company paid rent to New England Property Management (a new Vendor) on check
1503 for 3,000.00.

July 29 the Company paid a bill due to Sanford Winery for 2,000 on check 1504.
Note: Click Paybill, mark check 7/10/2016, click Assign Check Number, Pay Selected Bill,
in the Check field write 1504. Click OK and Done.

July 29 During the month of July:

- Nathan Chambers worked on salary.
- Kyle Hain worked 8 hours a day from the 19 th through the 23rd all of which was
unbilled time. He also worked 6 hours of billable time on Saturday July 24 th during
the John Hancock summer supper catered event. Use a new service item (X100,
Wait Staff, Rate $25, Account: Catering Sales, Tax Code: Non Taxable).
- Amy Casey also worked 8 hours a day from the 19 th through 23rd, all of which was
unbilled time. She also worked 8 hours of billable time on Saturday, July 24 th during
the John Hancock summer supper catered event.
- Payroll check are issued starting with check #1505.
- Paycheck information is shown next page:

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 Republic of the Philippines
CARLOS HILADO MEMORIAL STATE COLLEGE
CBMA, Fortune Towne Campus, Brgy. Estefania, Bacolod City

Pay/Tax/Withholding Chambers Hain Casey

Hours n/a 46 48
Rate $50,000 $16.00 $18.00
Gross pay 4,166.67 736.00 864.00
Federal withholding 570.83 100.83 118.37
Social Security Employee 258.33 45.63 53.57
Medicare Employee 60.42 10.67 12.53
MA Withholding 283.99 23.26 32.99
MA Training Fund 0.42 0.07 0.07
Social Security Employer 258.33 45.63 45.63
Medicare Employer 60.42 10.67 10.67
Federal Unemployment 33.33 5.89 5.89
MA Unemployment 125.00 22.08 22.08
Check amount 2,993.10 555.61 646.54

July 31 the company recorded sales receipt 931 for John Hancock, Terms due on receipt, for 175
item S200 and 30 W200 delivered, and the 14 hours of wait staff time.

On the same date, they receive check 12311 from the customer in the amount of
9,747.50 as payment in full. The amount was deposited to the same day (record deposit)

July 31 the company paid 2,000 to the US Food Service for food purchased and consumed for the
various events on July using check 1508.

Change the Food Purchases Account into Bar Purchases account.

Change all wine items COGS Account from cost of goods sold to bar purchases.

Evaluate a Firms Performance and Financial Position

1. Generate a standard income statement for July 31, 2020

2. Generate a balance sheet as of July 31, 2020.
3. Generate the Transaction List by Date for the month of July. This report will show every transaction
recorded in chronological order. It will include:
- the type of transaction, the date it was recorded, a number referenced (check number, invoice
number, etc.)
- the name of the entity (vendor name, customers name, employee name, etc.)
- the balance sheet account affected (checking, account receivable, undeposited funds, etc.)
- other accounts affected (inventory, revenue, expenses, etc.), and the amount.

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 Republic of the Philippines
CARLOS HILADO MEMORIAL STATE COLLEGE
CBMA, Fortune Towne Campus, Brgy. Estefania, Bacolod City

Additional Business Activities for Month of August 2020

A. Financing Activities
Aug. 2 the company wrote a check # 1509 to Citibank for 926.26 as an installment on notes payable
(416.67 of which was for interest expense).
Aug. 2 the company wrote check # 1510 to Bank of America for 610.32 as an installment of loan payable
(166.67 of which was for interest expense).
Aug. 3 the company electronically transferred 20,000 from the Bank of America checking account to the
short-term investment account.
Generate the standard balance sheet as of 8/31/20.

B. Investing Activities
Aug. 6 the company purchased some additional equipment from a restaurant that closed the previous
month. The equipment was valued at 10,000 for which the company signed a two-year 6% note
payable to Evian Sprinter with no payment due until maturity.
Aug. 9 the company purchased furniture from Outlet Tool Supply for 1,000 using check 1511.
Generate the standard balance sheet as of 8/31/20.
C. Operating activities – Purchases and Payments from/to Vendors
Aug. 5 the company ordered 48 bottles of a new item W400 Vintage Brut from Domain Chandon, 1
California Drive, Yountville, CA. 94599, term net 30, on purchase order 104. This champagne cost
36 per bottle and sells for 48 per bottle.
Aug. 6 the company paid bills due Fiddlehead Cellars as of 7/29/20 and US Food Service as of 7/31/20
assigning check numbers 1512 and 1513.
Aug. 26 the company received the 48 bottles of item W400 from Domain Chandon along with the bill due
in 30 days.
Generate the standard balance sheet as of 8/31/20.
D. Operating Activities – Expenses & Sales
Aug. 6 the company contracted with new customer, Boston College, terms net 15, that is subject to sales
tax. The company anticipates many future engagements with this customer and thus created a
new job (Event 1).
Aug. 15 the company paid rent to New England Property Management on check 1514 for 3,000.
Aug. 16 the company contracted with MIT. The company anticipates many future engagements with this
customer and thus created a new job (Dean Bumble).
Aug. 21 the company paid all bills outstanding using checks 1515-1517.
During the month of August Kyle Hain worked 10 hours and Amy Casey worked 9 hours on 8/15 during
the Boston College Event 1 party as wait staff. Kayle worked 12 hrs. and Amy worked 10 hours on
8/29 during the MIT Dean Bumble party as wait staff. Otherwise they did not work. Payroll checks

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 Republic of the Philippines
CARLOS HILADO MEMORIAL STATE COLLEGE
CBMA, Fortune Towne Campus, Brgy. Estefania, Bacolod City

are issued on 8/31/20 starting with check 1518. Paycheck information is shown below. (Note: no
premium paid for overtime.)

Pay/Tax/Withholding Chambers Hain Casey

Hours n/a 22 19
Rate $50,000 $16.00 $18.00
Gross pay 4,166.67 352.00 342.00
Federal withholding -570.83 -48.22 -46.85
Social Security Employee -258.33 -21.82 -21.20
Medicare Employee -60.42 -5.10 -4.96
MA Withholding -283.99 -5.92 -6.68
MA Training Fund 0.42 .04 0.03
Social Security Employer 258.33 21.82 21.20
Medicare Employer 60.42 5.10 4.96
4.96Federal Unemployment 33.33 2.82 2.74
MA Unemployment 125.00 10.56 10.26
Check amount 2,993.10 270.94 262.31

Aug. 15 the company catered the Boston College Event 1 party. On 8/16/20 the company invoiced Boston
College using invoice number 1123. They used 30 bottles of w100 and served 150 heavy appetizer
(A100).
Aug. 29 the company catered the MIT Dean Bumble party. On 8/30/20 the company invoiced MIT using
invoice number 1124. They used 45 bottles of W201 and served 200 light appetizers (A200).
Aug. 31 the company received a bill from US Food Service Food for 800 in food purchases for the Boston
College event. A Bill for the MIT party food purchases was expected next month.
Aug. 31 the company paid sales tax due as of 8/31/20 using check 1521.
Aug. 31 the company paid payroll liabilities due as of 7/31 using checks 1521 and 1522. (Hint: be sure to
modify payroll items and set vendor for federal withholding to the IRS).