Mackenzie Boyd had finally saved up enough money to start her own hair salon. She found a great location and incorporated her business "Kenzie Kair Corporation". The company will have a December 31 year end, prepare adjusting entries monthly and will use a periodic inventory system (for inventory it sells). The following transactions took place in the first two (2) months, August and September, of operations: 1 August 1, The company issued 100 common shares to Mackenzie for $100. 2 August 1, Mackenzie loaned the company $20,000. 3 4 August 15, The company signed a two (2) year lease. The lease will require payments of rent of $2,000 per month and commences September 1st. A security deposit of $2,000 plus first month's rent are due on September 1st. August 16, Mackenzie orders furniture and fixtures (styling chairs, mirrors, cash register, etc.) totaling $8,000 to be delivered September 1st. This amount is to be paid on account. 5 August 17, Mackenzie orders supplies for use in the business (shampoo, conditioner, colouring, etc.) totalling $2,000 to be delivered September 1st. This amount is to be paid on 6 7 8 9 account. August 18, Mackenzie places an advertisement on "Indeed" to hire hairstylists and colouring specialists. The advertisement costs $50 and required an Interac e-Transfer payment before the advertisement would be posted. The advertisement should be posted on August 20th. Mackenzie made the e-Transfer from the bank/cash account. August 28, Mackenzie interviews potential candidates for jobs and decides to hire 2 employees. The employees will start on September 6th and will be paid $20 per hour. Payroll will be paid bi-weekly. September 1, Mackenzie pays the rent and security deposit. September 1, the furniture and fixtures were delivered. The amount owing is due September 15. 10 September 1, the supplies were delivered. The amount owing is due September 15. 11 September 6, the hair salon opens for business. 12 September 7, Mackenzie orders products (merchandise inventory) to sell to customers. They are delivered the same day (Sept 7) and are paid for with $3,000 cash. 13 September 10, Mackenzie totals up the revenue earned from services for the week and it equals $5,000 cash. Mackenzie takes this money to the bank and deposits it. 14 September 15, the furniture and fixtures and supplies amounts from September 1 are paid. 15 September 16, Mackenzie pays her two employees their payroll for the week ending September 10. 37.5 hours each x $20 per hour. Assume no remittances for income taxes, CPP, or EI are required.