http://www.homeworkmarket.com/sites/default/files/q/02/10/qb-ch5_case_1_and_2.pdf

Use this link ^^^ the case problem didn’t come out right. It is chapter 5.1 case problem.

Make sure it says all 2015 not 2014

On April 1, 2014, Lynn Garcia began her business, called Lynn’s Music

Studio. In the first month of business, Lynn set up the music studio, provided

guitar and piano lessons, and recorded month-end activity. In May,

the second month of business, Lynn decides to purchase and sell inventory

items of guitars, keyboards, music stands, and sheet music. For customers

that purchase merchandise inventory, the terms of payment are 2110, Net 30

Days. For illustration purposes, assume a 7 % sales tax is charged on the sale

of all inventory items. The company file includes the information for Lynn’s

Music Studio as of May 1, 2014.

1. Open the company file CH5 Lynn’s Music Studio.QBW.

2. Make a backup copy of the company file LMS5 [‘YourName] Lynn’s

Music Studio.

3. Restore the backup copy of the company file. I~~both the Open Backup

Copy and Save Company File as windows use the file name LMS5 [Your

Name] Lynn’s Music Studio.

4. Change the Company Name to LMS5 [Your Name] Lynn’s Music

Studio.

5. Add the following inventory items to the Item List:

Type:

Item Name/Number:

Description on

Purchase/Sales Transactions:

Cost:

COGS Account:

Preferred Vendor:

Sales Price:

Tax Code:

Income Account:

Asset Account:

Reorder Point:

Inventory Part

Keyboards

Keyboards

75

5065 Cost of Keyboards Sold

Katie’s Keyboards

150

Tax – Taxable Sales

4065 Sale of Keyboards

1265 Inventory of Keyboards

10

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. 1

Type: Inventory Part j

Item Name/Number: Sheet Music

Description on

Purchase/Sales Transactions:

Cost:

COGS Account:

Preferred Vendor:

Sales Price:

Tax Code:

Income Account:

Asset Account:

Reorder Point:

Delete the following inventory item:

Harmonicas

Sheet Music

3

5075 Cost of Sheet Music Sold

Strings, Sheets & Such

6

Tax – Taxable Sales

4075 Sale of Sheet Music

1275 Inventory of Sheet Music

50

6. Using the appropriate window, record the following transactions for

May:

May 3

May 3

May 3

lMay3

May 4

May 4

May 7

May 10

May 11

May 11

Purchased 30 guitars on account from Music

Instruments, Inc., at $50 each, their Invoice No.

GU75998.

Purchased 30 keyboards on account from Katie’s

Keyboards at $75 each, their Invoice No. 10089-30,

Purchased 30 music stands from Melody Music

Equipment at $20 each, paid immediately, Check No.9.

Do not print check.

Purchased 300 sheets of music of various themes from

Strings, Sheets & Such at $3 each, paid immediately,

Check No. 10. Do not print check.

Sold 15 guitars for $100 each, 15 keyboards for $150

. each, and 15 music stands for $40 each to Jefferson High

School. Invoice No. 2{)12, terms 2110) Net 30 Days. In

‘addition, provided 15 hours of guitar lessons and 10

hours of piano lessons.

SoldIf keyboards for $150 each to Highland School,

Invoice No. 2013.;terms 2110, Net 30 Days. In addition,

provided 12hciiirs of piano lessons.

Received full payment frornJefferson High School for

Invoice 2009, Check No. 30531.

Record the weekly cash sales of sheet music, 75 sheets

at $6 each, Sale No. 2014. Leave the Customer.Job field

blank.

Sold 3 guitars for $100 each, 3 keyboards for $150 each,

and 3 music stands for $40 each to Mulligan Residence,

Invoice No. 2015, terms 2/10, Net 30 Days. In addition,

provided 5 hours of guitar lessons and 7 hours of piano

lessons.

Received full payment net of discount from Jefferson

High School for Invoice No. 2012, Check No, 30711.

,

L

“

INVENTORY j 5-39

Ch ter Review n d Ass n t

May 14 Received full payment net of discount from Highland

School, Check No. 76115.

May 17 Purchased 20 keyboards on account from Katie’s

Keyboard Company at $75 each, their Invoice No.

10758-20.

May 17 Purchased 10 music stands from Melody Music

Equipment at $20 each, paid immediately, Check No. II.

Do not print check.

May 17 Record the weekly cash sales of sheet music, 100 sheets at

$6 each, Sale No. 2016.

May 21 Sold 5 guitars for $100 each, 5 keyboards for $150 each,

and 5 music stands to Twin Lakes Elementary, Invoice

No. 2017, terms 2/10, Net 30 Days. In addition, provided

8 hours of guitar lessons and 5 hours of piano lessons.

May 24 Received a payment of $830 from Twin Lakes

Elementary for Invoices 2004 and 2011, Check No. 7266.

May 24 Record the weekly cash sales of sheet music, 115 sheets at

$6 each, Sale No. 2018.

May 24 Purchased 300 sheets of music of various themes from

Strings, Sheets, & Such at $3 each, paid immediately,

Check No. 12. Do not print check.

May 25 Received full payment net of discount from Twin Lakes

Elementary for Invoice No. 2017, Check No. 7384.

May 25 Paid in full Music Instruments, Inc. (Check No. 13). Do

not print check.

May 25 Paid in full Katie’s Keyboard Company, Invoice No.

10089-30 (Check No. 14). Do not print check.

May 31 Record the weekly cash sales of sheet music, 145 sheets at

$6 each, Invoice No. 2019.

May 31 Upon reviewing the inventory, Lynn discovers that one

guitar is damaged, through no fault of the manufacturer,

and cannot be sold. Adjust the inventory on hand to

remove the one guitar from the inventory. Inv. Adj. I.

May 31 Remit all sales taxes collected to the PA Dept. of

Revenue, Check No. 15.

May 31 Deposit all undeposited funds to the Cash – Operating

account.

7. Display and print the following reports for May 1,2014, to May 31, 2014:

a. Inventory Valuation Detail

b. Inventory Stock Status by Item

c. Purchases by Item Detail

d. Sales by Item Detail

e. Journal

f. Profit & Loss Standard (April 1, 20 14-May 31, 2014)

g. Balance Sheet Standard

MAKE SURE IT SAYS 2015 NOT 2014