journalizing

4 DOGTETY Arranged for a general business liability insurance policy and paid SLOO to State Penn Insurance. This premium is for nine months coverage Purchased a new computer system that cost $2,700 from Office Mart for use in the business. Ms. Franco signed a month, 10% installment note payable for the cost of the system. The computer system has an estimated useful life of 5 years and the residual (salvage) value is so. This will be recorded as Computer Equipment and depreciated using the Straight-Line Depreciation method accordingly (round the depreciation to the nearest cent) 5 7. 7/05 8. 7/05 9. 7/06 10. 7/06 11. 7/08 Deposit 2 Signed a note payable to borrow $18.000 from Wells Fargo Bank Interest is 8% annually and the note is to be repaid with interest in six months Ck 1003 Purchased a refrigerator for $13.000 from Fergie's Appliance Store. The estimated service life of this asset is 10 years. The residual (salvage value) is $1,000. This will be recorded as Refrigerator Equipment and depreciated accordingly on a straight line basis. Ck #1004 Purchased a delivery van for $25,000 from Carlo's Cars. The estimated service life is 5 years. The residual value is $4,000. This will be recorded as Delivery Van and depreciated accordingly on a straight line basis Ck 1005 Paid $1,200 to have Fran's logo painted on the door of the store. This should be considered an advertising expense. Ck #1006 Paid $300 for business cards, flyers, and posters. This will be recorded as prepaid advertising. Purchased $16,400 of inventory-fruit from Izzy's Fruit Warehouse on account. Purchased $2,400 of merchandise inventory-baskets from Ben's Basket Store on account. Ck #1007 Ms. Franco received and paid the $2,000 charge from her lawyer. Fran's Fruit Basket is now open for business. Sales will be both retail and wholesale. Retail customers will purchase online and at the store and will be charged an 8% sales tax. Ms. Franco will allow major customers to charge their purchases (Fran will treat this as a cash sale) Purchased $850 of supplies consisting of plastic wrap, foil, gloves, cleaning supplies, towels, on account. 12. 7/08 13. 7/13 14. 7/14 15. 7/14 17. 7/16 18. 7/22 Ck 1008 19. 7/23 Sold Fruit Baskets to UTEP for 5 $2.500, the cost of the baskets are $250. UTEP does not have to 000. The cost of the fruit is pay sales tax on this purchase and they paid on account. Purchased additional inventory fruit on count for $5.500 Received and paid the SSO invoice for supplies idearing wupplies towels, plastic wrap purchased on 7/14) Ms. Franco donated a fruit basket for a fundraiser for the Old Crisis Center. She felt that this was a good way to advertise her new business. Her business was listed as a sponsor and a large ad was put in the fundraiser program. Cost of the fruit was $600 and the baskets were $25. Ms. Franco considers this an advertising expense Received payment in full from UTEP. The payment was deposited in the bank 20. 7/23 Deposit 14 21. 7/23 Ck #1009 22. 7/23 23. 7/23 Ck 1010 Deposit 5 24. 7/23 Ck #1011 25. 7/25 Deposit #6 Ms. Franco paid her credit card bill for the month. The total was $675. This was for gas and other miscellaneous items purchased for the delivery of the fruit baskets Paid for the baskets purchased from Ben's Basket Store on 7/08 Online and retail sales totaled $9,500 plus sales taxes of $760. The Online and retail sales totale cost of the merchandise sold was $3,850 (fruit $3,500, baskets $350). The money was deposited in the bank. Paid the balance due to Izzy's Fruit Warehouse for the fruit. There are two invoices on 7/8/16 and 7/16/16. Collected and deposited $3,240 of payments on account from retail credit customers of which $240 was sales tax, COGS was $3,000 of which $2,700 was for fruit and $300 was for baskets. Received but did not pay the electric bill for the month, $250. Paid the first monthly installment on the computer equipment. The payment amount is $472.50. Of this amount, $22.50 is for interest and $450 is for principal. Make the check payable to Office Mart. Recorded online sales made for the last week of the month. Total sales were $4,500. The cost of the merchandise sold was $3,095 (fruit $2,815; baskets $280). Sales tax was $360. Paid all sales tax owed for July to the Comptroller of Public Accounts. Declared and paid a cash dividend of $50 to Fran Franco. 26. 7/28 27. 7/31 Ck #1012 28. 7/31 Deposit #7 29. 7/31 Ck #1013 30. 7/31 Ck #1014