Question

QBAO

Bill Brothers Barbershop is a sole proprietorship that has kept the books manually for several years. They have hired you to move them to QuickBooks Online for the year that begins January 1 of the current year. The books will be kept on accrual basis for management purposes. Review their specifications and answer the question below. Bill Brothers' Barbershop Bill Brothers will use his prior accounting system for any historical income or expense activity prior to January 1 of the current year • There are 3 other barbers who are independent contractors and rent booths from the shop @ $350.00/week. Bill would like to use recurring invoices delivered via email to invoice the barbers for rent • Bill's parents loaned the shop money; the remaining balance is $6,000.00 as of December 31 of the prior year • In December of the prior year, retail sales were $2,200.00 • Bill's outstanding receivables consist of three invoices (no partial payments received) to one of the barbers, who is behind on rent • The company purchases its retail product using a credit card. The balance due on the card as of December 31 of the prior year is $1,296.01 • All purchases were received by year end The balance per the check book register for the checking account on December 31 of the prior year is $12,861.47 and there are two checks outstanding: telephone expense $54.19 and utilities expense $87.26 • Prior year ending owner's equity (retained earnings) per previous accountant is $12,801.56 Bill's manual records as of December 31 of the prior year were kept on a cash basis, and include no prepayments

The books will be kept on accrual basis for management purposes.

Which 4 accounts would be included in the journal entry for recording beginning balances?

a. Checking

b. Inventory

c. Loan payable

d. Accounts payable

e. Credit card payable

f. Accounts Receivable

g. Cost Of Goods Sold

h. Opening balance equity

Answer 1

SOLUTION

4 accounts to be included in journal entry for recording beginning balances

1. Loan paybles - To record loan for shop money

2.Account payble - to record credit card balance , outstanding telephone and utility expenses

3. Account receivable - Three invoice to barber behind the rent .

4. Opening balance of equity - To record owners equity (retained earnings )

NOTE - PLEASE UPVOTE IT SHALL BE A GREAT FAVOR THANKS