Case Problem -
On April 1, 2017, Lynn Garcia started her business, Lynn's Music Studio. Lynn began by depositing $10,000 cash in a bank account in the business name. She also contributed a piano and some guitars. The musical instruments have an outstanding note balance of $2,000 that has been assumed by the business. The cash, musical instruments, note payable, and capital have all been recorded in the opening balances of the books. For the first part of the month, Lynn set up her studio. She has now begun providing piano and guitar lessons. Piano lessons are billed at $35 per hour, and guitar lessons are billed at $30 per hour. You will record the transactions listed below for the month of April. The company file for this chapter includes the beginning information for Lynn's Music Studio along with the transaction balances from Chapter 2.
1. Open the company file CH3 Lynn's Music Studio.QBW.
2. Make a backup copy of the company file, and name it LMS3 [Your Name] Lynn's Music Studio.
3. Restore the backup copy of the company file. In both the Open Backup Copy and Save Company File as windows, use the file name LMS3 [Your Name] Lynn's Music Studio.
4. Change the company name to LMS3 [Your Name] Lynn's Music Studio.
5. Add the following customer to the Customer Center:
- CUSTOMER NAME: Musical Youth Group
- OPENING BALANCE: 0 AS OF April 1, 2017
- COMPANY NAME: Musical Youth Group
- First Name: Dana
- Last Name: Thompson
- Main Phone: 570-555-6642
- Fax: 570-555-6700
- Main Email: [email protected]
- INVOICE/BILL TO: 550 Marion Lane Scranton, PA 18504
- CREDIT LIMIT: 20,000
- PAYMENT TERMS: Net 30 Days
- TYPE: Group
Delete the following customer: Rivera Family
6. Using the appropriate window, record the following transactions for April 2017:
Apr. 9 - Provided 15 hours guitar lessons and 10 hours piano lessons on account to Jefferson High School, Invoice No. 2001, Net 10 Days
Apr. 12 - Provided 3 hours piano lessons to the Schroeder Family, Invoice No. 2002. Received payment immediately, Check No. 478.
Apr. 13 - Provided 12 hours piano lessons to Highland School, Invoice No. 2003, Net 30 Days.
Apr. 16 - Provided 8 hours guitar lessons and 5 hours piano lessons to Twin Lakes Elementary School, Invoice No. 2004, Net 30 Days.
Apr. 16 - Provided 6 hours guitar lessons to the Patterson Family, Invoice No. 2005. Received payment immediately, Check No. 208.
Apr. 20 - Provided 5 hours guitar lessons and 7 hours piano lessons to Mulligan Residence, Invoice No. 2006, Net 30 Days.
Apr. 20 - Received payment in full from Jefferson I sigh School for Invoice No. 2001, Check No. 28759.
Apr. 23 - Provided 5 hours of piano lessons to Douglaston Senior Center, Invoice No. 2007, Net 30 Days.
Douglaston Senior Center is a new client:
- CUSTOMER NAME: Douglaston Senior Center
- OPENING BALANCE: 0 AS OF April 1, 2017
- COMPANY NAME: Douglaston Senior Center
- First Name: Herbie
- Last Name: Richardson
- Main Phone: 570-555-7748
- Fax: 570-555-8800
- Main Email: [email protected]
- INVOICE/BILL TO: 574 S Beech Street Scranton, PA 18506
- CREDIT LIMIT: 25,000
- PAYMENT TERMS: Net 30 Days
- TYPE: Group
Apr. 23 - Provided 10 hours guitar lessons and 10 hours piano lessons to the Musical Youth Group, Invoice No. 2008. Received payment immediately, Check No. 578.
Apr. 26 - Provided 15 hours guitar lessons and 10 hours piano lessons on account to Jefferson High School, Invoice No. 2009, Net 10 Days.
Apr. 26 - Received payment in full from Highland School for Invoice No. 2003, Check No. 75281.
Apr. 27 - Provided 2 hours guitar lessons for the Patel Family, Invoice No. 2010. Received payment immediately, Check No. 629.
Apr. 30 - Provided 8 hours guitar lessons and 5 hours piano lessons to Twin Lakes Elementary School, Invoice No. 2011, Net 30 Days.
Apr. 30 - Received partial payment of $145 from Mulligan Residence for Invoice No. 2006, Check No. 715.
Apr. 30 - Deposited all receipts for the month.
7. Display and print the following reports for April 1, 2017, to April 30, 2017:
a. Open Invoices
b. Customer Balance Detail
c. Customer Contact List
d. Journal