For the Month of September and October

• In proper General Journal format, record the transactions for the months; include descriptions of each transaction with your journal entry. Use only the accounts shown in the chart of accounts.
• Post the journal entries for the months to the general ledger accounts
• Prepare a trial balance for the period ending September 30 and October 31.

8/1 YOU filed a charter with the State of Louisiana to form the YOUR Accounting Corporation. The charter authorizes you to issue 5000 shares of $2 par common stock. The state charged you a $75 fee to file the charter. Since your business is not yet approved, you had to pay this fee using personal funds.

9/1 You received your charter from the State of Louisiana and officially opened your business. Your first order of business was to become a shareholder of YOUR Accounting Corp. To do this, you purchased 600 shares of common stock by issuing a check to YOUR Accounting Corp for $12,000. You used this money to open a checking account at First Funds Bank.

9/1 You rented an office for YOUR Accounting Corp. The monthly rent is $500, with the first months rent due immediately. You issue check #100 to Office Builders for the first months rent.

9/1 You turned on utilities with Max Power Co. and WaterWorks #1. Max Power Co. collected a $50 deposit. Waterworks #1 collected a $20 deposit. You issued check #s 101 and 102, respectively.

9/2 You then went to the Apple store and purchased a new computer system for your business. Your Mac Pro cost $3000 and your new printer cost $500. You set up a 30-day account with Apple to make this purchase.

9/2 You purchased office furniture from Business World Supplies in the amount of $1750. You issued check #103 to pay for the items. NOTE: The total for the office furniture is below the capitalization threshold.

9/4 You decided to purchase a new vehicle for your business. Upon visiting Pro-Auto, you decide on a new SUV at a cost of $55,000. This vehicle will be used 100% for business purposes. You finance the vehicle with Pig E Bank at a rate of 5% for 5 years. Your first monthly payment is due on October 4.

NOTE: You will need to create a loan amortization schedule to determine the amount of the monthly note and the interest expense for each month. You can use a website such as www.bankrate.com to create the schedule. When recording your journal entries, round all amounts to the nearest dollar.

9/5 You purchased supplies from KEM Supply for your business at a cost of $600. KEM opened a customer charge account for you. The payment terms on your account will be 2/10, net 30. The time period for determining the payment amount begins on the purchase date.

9/5 Leah Legality, your attorney, filed for your Occupational License with the parish. She will invoice you the bill.

9/6 You purchased a one-year auto insurance policy from InsureMart for $1200. InsureMart gave you an invoice for the policy. YOUR Accounting Corporation capitalizes the insurance policy and records an expense at year-end for the expired portion of the policy.

9/10 Your first client, Red Fische, came in today needing assistance with filing the appropriate paperwork to start his new seafood restaurant. You issued invoice #1 to Red Fische and he paid you an initial $2,000 Engagement Fee. Red Fische also agreed to contract with you to provide accounting services for $2,500 per month.

9/12 You issue check #105 to YOUR Accounting Corp to establish a $600 Petty Cash Fund. You will use this account to make small cash purchases.

9/12 You reimburse yourself for the filing fees associated with forming your corporation.

9/14 You paid KEM Supply by issuing check #106.

9/15 You hire an administrative assistant, Mandi Handi, she will be paid a monthly salary of $1500. You have decided that all pay periods will end on the last day of the month and that checks will be issued on the 5^th of each month.

NOTE: Assume the following rates when preparing the payroll: federal income tax 15%, state income tax 5%, and FICA 7.65%.

YOUR Accounting Corp. has state and federal unemployment insurance rates of 1% (FUTA) and 2% (SUTA) on the first $7,700 of wages per employee. The employer FICA rate is 7.65%.

9/20 You visited a new client, Anita Cooke, to set up a Quickbooks accounting system for her new business, Cooking For You. You gave Anita and invoice #2 for the Engagement Fee and she paid you by issuing a check in the amount of $2,000. Anita also agreed to a monthly fee of $1,500 for you to handle her ongoing accounting needs.

9/22 You purchased $50 of fuel for your new SUV from Get n Go. You charged this to your Get n Go account.

9/25 You really dont like cleaning, so you contracted with Clean Machine for weekly janitorial services. You will be invoiced $100 per month after services are performed.

9/30 First Funds Bank drafted $15 from your bank account for service charges.

9/30 Mandi sent pro-rated invoices, #3 & #4, to Red Fische and Cooking For You for Monthly Accounting Services. The payment terms are 1/10, net 30.

9/30 You accrued interest on the Pig E. Bank note. Accrue interest based on the number of days in the month.

9/30 You computed and accrued the payroll for September.

9/30 You received monthly bills for the following:

Max Power Company - $100, terms n/30

WaterWorks #1 - $20, terms n/30.

Chart of accounts: cash, petty cash, accounts receivables, supplies on hand, prepaid insurance, computer equipment, accumulated depreciation of equipment, cell phone, accumulated depreciation of -cell phone, vehicles, accumulated depreciation of vehicles, accounts payable, customer deposits (unearned revenue), SUTA payable, FICA payable, FUTA payable, Federal income tax payable, State income tax payable, current maturities of long term debt, notes payable (long term), interest payable, salaries payable, common stock (2$ par value), additional paid in capital on common stock, retained earnings, dividends, engagement fees, Monthly accounting services revenue, hourly accounting services revenue, tax service revenue, sales discount, advertising and promotion expense, depreciation expense, rent expense, insurance expense, supplies expense, meal and entertainment, taxes and licenses, telephone expense, utilities expense, fuel expense, interest expense, payroll tax expense, salaries expense, service charge expense, charitable contributions expense, contract labor expense, De Minimus Furniture & equipment expense, heather ins- employee, Health in-member, janitorial expense, pest control expense, postage & delivery expense, professional fees expense, repairs and maintenance expense, income summary.