Northstar Creative LLC

Fictional practice project using synthetic transactions. This worked example is not a client engagement, testimonial or evidence of a completed QuickBooks engagement.

Business profile

Northstar Creative LLC is an invented US design-services business. This example covers January 2026 on an accrual basis in USD, with a fictional checking account and credit card. All names, records and figures are synthetic.

Training transactions

January synthetic transaction ledger
Item	USD
Owner contribution to checking	5,000
Service invoices issued	8,000
Customer collections to checking	6,000
Software expense paid from checking	300
Contractor expense paid from checking	2,000
Rent paid from checking	1,000
Office supplies charged to card	400
Unpaid contractor bill	700
Owner draw from checking	500
Bank fee	20

Before review: issues to investigate

The synthetic unadjusted ledger contains software expense twice ($300), omits the $20 bank fee and classifies the $500 draw as an expense. One $2,000 customer invoice is outstanding, and a $700 contractor bill awaits payment. No unsupported balance adjustment is used.

Cleanup workflow

Confirm the $5,000 opening funding is an owner contribution rather than revenue.
Compare both software entries to one source receipt and remove the supported duplicate.
Record the statement-backed $20 bank fee.
Reclassify the $500 owner payment to draws after confirming its purpose.
Match customer collections to invoices; retain the $2,000 A/R balance.
Confirm the $700 contractor bill and the $400 card purchase remain unpaid.

Reconciliation process

Checking starts at $0. Contribution $5,000 + collections $6,000 − software $300 − contractor payment $2,000 − rent $1,000 − draw $500 − fee $20 = $7,180. In this synthetic example every payment clears and there are no outstanding bank items. The fictional statement also ends at $7,180, giving a $0 reconciliation difference.

The fictional credit-card statement starts at $0 and ends at $400 after the supplies purchase, with no card payments. The card ledger agrees at $400.

Example deliverables after supported corrections

Profit & Loss · January 2026 · accrual · USD
Item	USD
Service revenue	8,000
Software	300
Contractor expenses (2,000 paid + 700 payable)	2,700
Rent	1,000
Office supplies	400
Bank fees	20
Total expenses	4,420
Net income	3,580

Balance Sheet · January 31, 2026 · USD
Item	USD
Cash	7,180
Accounts receivable	2,000
Total assets	9,180
Credit card payable	400
Accounts payable	700
Total liabilities	1,100
Owner contribution	5,000
Owner draws	(500)
Current-period income	3,580
Total equity	8,080
Liabilities + equity	9,180

A/R aging and A/P list · synthetic counterparties
Item	USD
Client A · invoice Jan 20, due Feb 19 · current A/R	2,000
Contractor B · bill Jan 25, due Feb 24 · A/P	700

Before and after, as a training exercise

Unadjusted expenses were $5,200 and profit was $2,800. Removing the duplicate reduces expenses by $300; recording the fee adds $20; reclassifying the draw reduces expenses by $500. Adjusted expenses are $4,420 and profit is $3,580. These are arithmetic results from this invented dataset, not business-performance claims.

Owner questions and close checklist

Confirm the owner payment was a draw and all January invoices were supplied.
Confirm no January services, expenses or card accounts are missing.
Ask whether any customer disputes or subsequent credits affect the open invoice.
Confirm contractor bill approval and record payment only when supported.
Retain reconciliation summaries, reports, correction log and this questions list.

Accounting equation check: $9,180 = $1,100 + $8,080. Profit check: $8,000 − $4,420 = $3,580.

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