Journalize Entries 8/1 You filed a charter with the State of Louisiana to form your accounting corporation. The charter authorizes you to issue 50000 shares of $2 par common stock. The state charged you a $175 fee to file the charter. Since your business is not yet approved, you had to pay this fee using personal funds. (no entry required) 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 in your accounting corp. To do this, you purchased 5000 shares of common stock by issuing a check to your business for $50,000. You used this money to open a checking account at First Funds Bank. 9/1 You rented an office. 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, which will be refunded after 3 months of service. Waterworks #1 collected a $20 deposit. You issued check #s 101 and 102, respectively. Record the deposits as an expense. 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 $450. 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 $500. 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 an office building for your business. The cost of the office was $200,000. Pig E Bank agreed to finance the purchase and offered you a 30-year 6.0% mortgage and required you to make a 10% down payment. You made the deposit by issuing check #104. Your monthly payments will be due on the fourth of each month, The first monthly note is due on October 4. 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 Insurance policy for your office building from InsureMart. The premium is $1800. Instead of paying the premium in full, you chose to make 12 monthly payments with a 10% annual interest rate. Your first payment was due today. You issued check #105 in the amount of $165. A portion of this payment represents the interest payment. 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 $3,000 Engagement Fee. Red Fische also agreed to contract with you to provide accounting services for $3,000 per month. 9/12 You issue check #106 to your business to establish a $500 Petty Cash Fund. You will use this account to make small cash purchases. 9/12 You reimburse yourself out of petty cash for the filing fees associated with forming your corporation. This is the fee you paid with personal expenses on 8/1. Charge the filing fee to tax and license expense. 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 5th 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 business 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%. 9/18 You purchased computer software on account from Accounting-Is-Fun. The purchase price was $900. Terms are a $30 flat-rate monthly service charge on any remaining balance after 30 days. (Record purchase of computer software to Supplies on Hand account). 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 $2,100 for you to handle her ongoing accounting needs. 9/22 You purchased $100 of fuel for your vehicle 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 $150 per month after services are performed. 9/30 First Funds Bank drafted $20 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 mortgage. Use 360 days in the year to calculate the interest. You are accruing the interest for the number of days interest earned since the signing of the note. (Show your computations in your journal). 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.