Before starting, read the document titled Term Assignment Instructions - Part 1 (in Brightspace). J. Sweet incorporated a marketing firm named J. Sweet & Associates Ltd. at the beginning of January 2020. JS (J. Sweet's nickname) discovered that you are taking an accounting course and has asked you for assistance in preparing the financial information for the company's bank. JS decided on January 31st for the end of their fiscal period, so you only need statements for the first month of operations. If you need to calculate any numbers please include these calculations in the narrative line for your journal entry. Journal entry narratives are recorded below the journal entry and include relevant information (including calculations) about the entry. For the purposes of this assignment, round any cents to the nearest dollar (using the 4/5 rule). Jan 1 The company issued 50 common shares to us for $7,500 cash. Jan 1 A business loan was approved by the bank for $35,000, which was deposited into the I company's bank account on the same day. The loan bears interest at 6%, payable on the first day of each month. The loan principal of $35,000 is due on January 1, 2022. JS was able to find suitable office space available immediately and the company paid for three month's rent in advance for a total of $4,500. Jan 1 JS purchased a new computer on account for the company for $2,700. The total invoice is due on February 15, at which time it will be paid. The computer is expected to last three years (36 months) at which time it will have a zero $value. JS felt that straight line depreciation would be appropriate for this asset. JS also felt that name recognition was important for the firm and purchased an existing trademark (from a competing firm whose owner/founder was retiring and shutting down the business). JS planned to use this in all the firm's promotional material for the foreseeable future. Purchasing the trademark and its legal rights cost JS $5,000. Jan 3 JS went shopping for office supplies and paid $3,800 cash for the purchases. Jan 6 JS hired Wvatt Printing to print brochures for the Company at a cost of $1.750. These were Jan 1 Jan 1 Before starting, read the document titled Term Assignment Instructions - Part 1 (in Brightspace). J. Sweet incorporated a marketing firm named J. Sweet & Associates Ltd. at the beginning of January 2020. JS (J. Sweet's nickname) discovered that you are taking an accounting course and has asked you for assistance in preparing the financial information for the company's bank. JS decided on January 31st for the end of their fiscal period, so you only need statements for the first month of operations. If you need to calculate any numbers please include these calculations in the narrative line for your journal entry. Journal entry narratives are recorded below the journal entry and include relevant information (including calculations) about the entry. For the purposes of this assignment, round any cents to the nearest dollar (using the 4/5 rule). Jan 1 The company issued 50 common shares to us for $7,500 cash. Jan 1 A business loan was approved by the bank for $35,000, which was deposited into the I company's bank account on the same day. The loan bears interest at 6%, payable on the first day of each month. The loan principal of $35,000 is due on January 1, 2022. JS was able to find suitable office space available immediately and the company paid for three month's rent in advance for a total of $4,500. Jan 1 JS purchased a new computer on account for the company for $2,700. The total invoice is due on February 15, at which time it will be paid. The computer is expected to last three years (36 months) at which time it will have a zero $value. JS felt that straight line depreciation would be appropriate for this asset. JS also felt that name recognition was important for the firm and purchased an existing trademark (from a competing firm whose owner/founder was retiring and shutting down the business). JS planned to use this in all the firm's promotional material for the foreseeable future. Purchasing the trademark and its legal rights cost JS $5,000. Jan 3 JS went shopping for office supplies and paid $3,800 cash for the purchases. Jan 6 JS hired Wvatt Printing to print brochures for the Company at a cost of $1.750. These were Jan 1 Jan 1
