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Jack starts a company, the company exterminates pests from office buildings and residential homes. Jack is engaging us Dan CPA in order to help him
Jack starts a company, the company exterminates pests from office buildings and residential homes. Jack is engaging us Dan CPA in order to help him start and run the company.
Jacks first question is what type of entity if any should he create. Jacks biggest concern is personal liability, and ease of raising funds.
After a consultation Jack opens the entity Dan CPA recommended and the following transactions occurred.
Jack takes $ from his personal savings account and invest it in the companys checking account
Jack uses $ to purchase van
Jack purchases $ of extermination equipment
Jack purchases $ of supplies
Jack signs a contract to provide a one time extermination service on Baruch for $ cash, services are provided on
Jack borrows $ from the bank to finance future business operations. The funds need to be repaid on
Jack purchases insurance for Months for $
Jack withdraws $ to pay for him and his spouse to go on vacation.
Jack performs extermination services for Baruch College for $ with an agreement that Baruch will pay at a later date
Jack purchases additional supplies for
Jack gets a brand new credit card for the business, the credit limit is $
Jack buys a $ gift for Baruch college Janitorial staff for doing such a bad job cleaning the campus that they need to keep hiring him to exterminate.
Jack hires a designer for $ to make him a logo
Jack pays estimated income tax of $
Jack gets a job to exterminate a roach infestation in a super expensive restaurant in downtown Brooklyn that charges twenty bucks for an omelet. The cost of extermination is $
Jack pays $ for client lunch
Jack withdraws to go on another vacation with his Girl Friend
Jack withdraws $ for the company to pay for a divorce lawyer
Jack purchases additional supplies for $
Jack gets paid from Baruch job preformed on In addition, Baruch paid a late payment fee of $
Jack rents office space for $ a month starting Sep
Jack office staff for $ a month
Jack pays rent and salary for office staff
Jack wins an extermination contract for $ to exterminate an office building. Half the funds are paid now and the rest will be paid when the job is complete.
Jack pays rent and office staff
Jack starts and finishes the job from
Jack withdraws $ to buy his Girl Friend a new coat
Jack pays rent and wages
Jack buys additional supplies for $
o Jack takes inventory and only has $ of supplies on hand
o Jack pays Rent and Wages
o Jack Give himself a withdrawal to buy a new car and to celebrate a great year killing bugs
Dan CPA is tasked with booking the activity for the year and creating a Balance Sheet and Income Statement. Jacks extermination business is an on an Accrual method of accounting.
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