Acc. 231 practice #1QuickBooksUsing quick books 2012 create a new company. Be patient when you open the programit will take a minute. Use the Express start Name your company after yourself. Select a general service based business for the second boxa list will appear if you click on the help me choose link. Select a sole proprietorship for the company type. You may leave the tax ID number blank. Then continue to the next screen and press the create company file button. Then press the start working button. Your company will sell internet service to individuals and businesses.Go to the Edit drop=down menu. Select preference. Enable Purchase Orders and inventory by clicking the box next to Inventory and purchase orders are activeNow that your company is Openenter the following transactions, if information is given to you, you will be expected to enter the information:Feb.3, 2014Bank of Kabul opens you 25000 on terms of 5% compounded monthly and amortized for 4 years. They do not send you a check, they simply make a cash deposit into a bank account that they then helpfully open for you. This is set owners equity; it is a long-term liabilitythinks about it, you have no equity, your assets minus your liabilities equals zero. Create a new account, it is a being term liability, name it Note payableBank of Kabul. Check; at this point, Feb, 3, 2014, your balance sheet has two items, Cash of 25000 and a long-term liability of 25000. You have no equity at this point. Feb. 3, 2014you go and sent an office at the Kabul bank professional building. The security deposit of $1,500 and first months rent of 1,050 are paid to Ahmad Properties inc. via check #1 from your bank of Kabul account. Be sure to note on the memo line that this check is for first months rent and security deposit. HINT: remember that the security deposit is not an expense. You can make accounting entries on the same check! One credit to cash for 2,550 but a corresponding debit to security deposit of $1,500 and a second debit to rent expense in the amount of 1,050.Feb. 3, 2014The officer needs furniture. You go to town and buy $1,700 worth of office furniture and $300 of supplies from Honolulu business supply. You write check #2 to pay for this. You have two separate accounts here. One for furniture, one for supplies,Furniture and equipment is an asset, so are office supplies (at least until you use them), create a current account called Office supplies inventory because the system wont create Office supplies a name already given to an expense account.Feb. 6, 2014you have made a deal with hub, this will allow you to sell high-speed internet to any cable customers. Write check #3 to transpacific for $1,500 as your first semi-annual payment. Write check #4 to island Tech $2,000, pay the bill on the name day using check #5. The terms on the bill are due on receipt.