Please prepare T accounts for the following entries for the month of September You start your own business, a sole proprietorship, as an environmental consultant on September 1, 2016, doing business as EH S Consulting You contract with clients to perform consulting services and charge them an hourly rate for your time Clients will also reimburse you for your out of pocket expenses such as photo copy costs, travel expenses and long distance telephone calls To start your business you take $5,000 00 from your personal savings account and borrow $20,000 00 from your local bank The bank loan is for five years at 6 interest and your monthly payment which starts on October 1 st is $386 66 The amortization table for the loan which tells is at the end of this assignment You rent office space for $1,500 00 per month by signing a two year lease You pay $4,500 00 as the first months rent, last months rent and security deposit You purchase $537 82 in office supplies by charging the cost on your personal credit card and then reimbursing yourself for the cost the following week You buy office equipment that was listed as costing $6,000 00 for $5,250 00 (computers, copier, fax, printer, telephones) by signing a purchase agreement that allows you to take the equipment for no money down and pay $218 75 per month starting in January 2005 for two years At the end of the two year period the equipment will have no residual value You a twenty four month contract for telephone and internet service from a service provider for $125 00 per month Your first payment was made on September 1 st and all future payments are due on the first of the month Your purchase business insurance (excluding malpractice insurance) and the premium for one year is $1,050 00 and due November 1 st Business is good that first month and you bill the following clients for services rendered Name Fees Reimbursable costs Able Company $3,500 00 $329 87 Baker Company $4,000 00 $43 72 Charlie Company $2,375 00 $157 73 Delta company $7,500 00 $422 69 Total $17,375 00 $954 01 The Reimbursable costs you billed to clients was for your out of pocket travel costs, so you write a check to yourself on September 30 th for $954 01 Amortization Table for the loan Pmt Principal Interest Cum Prin Cum Int Prin Bal 1 286 66 100 00 286 66 100 00 19,713 34 2 288 09 98 57 574 75 198 57 19,425 25 3 289 53 97 13 864 28 295 70 19,135 72 4 290 98 95 68 1,155 26 391 38 18,844 74 5 292 44 94 22 1,447 70 485 60 18,552 30 6 293 90 92 76 1,741 60 578 36 18,258 40 7 295 37 91 29 2,036 97 669 65 17,963 03 8 296 84 89 82 2,333 81 759 47 17,666 19 9 298 33 88 33 2,632 14 847 80 17,367 86 10 299 82 86 84 2,931 96 934 64 17,068 04 11 301 32 85 34 3,233 28 1,019 98 16,766 72 12 302 83 83 83 3,536 11 1,103 81 16,463 89 13 304 34 82 32 3,840 45 1,186 13 16,159 55 14 305 86 80 80 4,146 31 1,266 93 15,853 69 15 307 39 79 27 4,453 70 1,346 20 15,546 30 16 308 93 77 73 4,762 63 1,423 93 15,237 37 17 310 47 76 19 5,073 10 1,500 12 14,926 90 18 312 03 74 63 5,385 13 1,574 75 14,614 87 19 313 59 73 07 5,698 72 1,647 82 14,301 28 20 315 15 71 51 6,013 87 1,719 33 13,986 13 21 316 73 69 93 6,330 60 1,789 26 13,669 40 22 318 31 68 35 6,648 91 1,857 61 13,351 09 23 319 90 66 76 6,968 81 1,924 37 13,031 19 24 321 50 65 16 7,290 31 1,989 53 12,709 69 25 323 11 63 55 7,613 42 2,053 08 12,386 58 26 324 73 61 93 7,938 15 2,115 01 12,061 85 27 326 35 60 31 8,264 50 2,175 32 11,735 50 28 327 98 58 68 8,592 48 2,234 00 11,407 52 29 329 62 57 04 8,922 10 2,291 04 11,077 90 30 331 27 55 39 9,253 37 2,346 43 10,746 63 31 332 93 53 73 9,586 30 2,400 16 10,413 70 32 334 59 52 07 9,920 89 2,452 23 10,079 11 33 336 26 50 40 10,257 15 2,502 63 9,742 85 34 337 95 48 71 10,595 10 2,551 34 9,404 90 35 339 64 47 02 10,934 74 2,598 36 9,065 26 36 341 33 45 33 11,276 07 2,643 69 8,723 93 37 343 04 43 62 11,619 11 2,687 31 8,380 89 38 344 76 41 90 11,963 87 2,729 21 8,036 13 39 346 48 40 18 12,310 35 2,769 39 7,689 65 40 348 21 38 45 12,658 56 2,807 84 7,341 44 41 349 95 36 71 13,008 51 2,844 55 6,991 49 42 351 70 34 96 13,360 21 2,879 51 6,639 79 43 353 46 33 20 13,713 67 2,912 71 6,286 33 44 355 23 31 43 14,068 90 2,944 14 5,931 10 45 357 00 29 66 14,425 90 2,973 80 5,574 10 46 358 79 27 87 14,784 69 3,001 67 5,215 31 47 360 58 26 08 15,145 27 3,027 75 4,854 73 48 362 39 24 27 15,507 66 3,052 02 4,492 34 49 364 20 22 46 15,871 86 3,074 48 4,128 14 50 366 02 20 64 16,237 88 3,095 12 3,762 12 51 367 85 18 81 16,605 73 3,113 93 3,394 27 52 369 69 16 97 16,975 42 3,130 90 3,024 58 53 371 54 15 12 17,346 96 3,146 02 2,653 04 54 373 39 13 27 17,720 35 3,159 29 2,279 65 55 375 26 11 40 18,095 61 3,170 69 1,904 39 56 377 14 9 52 18,472 75 3,180 21 1,527 25 57 379 02 7 64 18,851 77 3,187 85 1,148 23 58 380 92 5 74 19,232 69 3,193 59 767 31 59 382 82 3 84 19,615 51 3,197 43 384 49 60 384 49 1 92 20,000 00 3,199 35 0 00

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 26, 2024

Please prepare T accounts for the following entries for the month of September: You start your own business, a sole proprietorship, as an environmental consultant

Please prepare T accounts for the following entries for the month of September:

You start your own business, a sole proprietorship, as an environmental consultant on September 1, 2016, doing business as EH & S Consulting. You contract with clients to perform consulting services and charge them an hourly rate for your time. Clients will also reimburse you for your out of pocket expenses such as photo copy costs, travel expenses and long distance telephone calls.

To start your business you take $5,000.00 from your personal savings account and borrow $20,000.00 from your local bank. The bank loan is for five years at 6% interest and your monthly payment which starts on October 1^st is $386.66. The amortization table for the loan which tells is at the end of this assignment.

You rent office space for $1,500.00 per month by signing a two-year lease. You pay $4,500.00 as the first months rent, last months rent and security deposit.

You purchase $537.82 in office supplies by charging the cost on your personal credit card and then reimbursing yourself for the cost the following week.

You buy office equipment that was listed as costing $6,000.00 for $5,250.00 (computers, copier, fax, printer, telephones) by signing a purchase agreement that allows you to take the equipment for no money down and pay $218.75 per month starting in January 2005 for two years. At the end of the two year period the equipment will have no residual value.

You a twenty four month contract for telephone and internet service from a service provider for $125.00 per month. Your first payment was made on September 1^st and all future payments are due on the first of the month.

Your purchase business insurance (excluding malpractice insurance) and the premium for one year is $1,050.00 and due November 1^st.

Business is good that first month and you bill the following clients for services rendered:

Name Fees Reimbursable costs

Able Company $3,500.00 $329.87

Baker Company $4,000.00 $43.72

Charlie Company $2,375.00 $157.73

Delta company $7,500.00 $422.69

Total $17,375.00 $954.01

The Reimbursable costs you billed to clients was for your out of pocket travel costs, so you write a check to yourself on September 30^th for $954.01.

Amortization Table for the loan

Pmt	Principal	Interest	Cum Prin	Cum Int	Prin Bal
1	286.66	100.00	286.66	100.00	19,713.34
2	288.09	98.57	574.75	198.57	19,425.25
3	289.53	97.13	864.28	295.70	19,135.72
4	290.98	95.68	1,155.26	391.38	18,844.74
5	292.44	94.22	1,447.70	485.60	18,552.30
6	293.90	92.76	1,741.60	578.36	18,258.40
7	295.37	91.29	2,036.97	669.65	17,963.03
8	296.84	89.82	2,333.81	759.47	17,666.19
9	298.33	88.33	2,632.14	847.80	17,367.86
10	299.82	86.84	2,931.96	934.64	17,068.04
11	301.32	85.34	3,233.28	1,019.98	16,766.72
12	302.83	83.83	3,536.11	1,103.81	16,463.89

13	304.34	82.32	3,840.45	1,186.13	16,159.55
14	305.86	80.80	4,146.31	1,266.93	15,853.69
15	307.39	79.27	4,453.70	1,346.20	15,546.30
16	308.93	77.73	4,762.63	1,423.93	15,237.37
17	310.47	76.19	5,073.10	1,500.12	14,926.90
18	312.03	74.63	5,385.13	1,574.75	14,614.87
19	313.59	73.07	5,698.72	1,647.82	14,301.28
20	315.15	71.51	6,013.87	1,719.33	13,986.13
21	316.73	69.93	6,330.60	1,789.26	13,669.40
22	318.31	68.35	6,648.91	1,857.61	13,351.09
23	319.90	66.76	6,968.81	1,924.37	13,031.19
24	321.50	65.16	7,290.31	1,989.53	12,709.69

25	323.11	63.55	7,613.42	2,053.08	12,386.58
26	324.73	61.93	7,938.15	2,115.01	12,061.85
27	326.35	60.31	8,264.50	2,175.32	11,735.50
28	327.98	58.68	8,592.48	2,234.00	11,407.52
29	329.62	57.04	8,922.10	2,291.04	11,077.90
30	331.27	55.39	9,253.37	2,346.43	10,746.63
31	332.93	53.73	9,586.30	2,400.16	10,413.70
32	334.59	52.07	9,920.89	2,452.23	10,079.11
33	336.26	50.40	10,257.15	2,502.63	9,742.85
34	337.95	48.71	10,595.10	2,551.34	9,404.90
35	339.64	47.02	10,934.74	2,598.36	9,065.26
36	341.33	45.33	11,276.07	2,643.69	8,723.93

37	343.04	43.62	11,619.11	2,687.31	8,380.89
38	344.76	41.90	11,963.87	2,729.21	8,036.13
39	346.48	40.18	12,310.35	2,769.39	7,689.65
40	348.21	38.45	12,658.56	2,807.84	7,341.44
41	349.95	36.71	13,008.51	2,844.55	6,991.49
42	351.70	34.96	13,360.21	2,879.51	6,639.79
43	353.46	33.20	13,713.67	2,912.71	6,286.33
44	355.23	31.43	14,068.90	2,944.14	5,931.10
45	357.00	29.66	14,425.90	2,973.80	5,574.10
46	358.79	27.87	14,784.69	3,001.67	5,215.31
47	360.58	26.08	15,145.27	3,027.75	4,854.73
48	362.39	24.27	15,507.66	3,052.02	4,492.34

49	364.20	22.46	15,871.86	3,074.48	4,128.14
50	366.02	20.64	16,237.88	3,095.12	3,762.12
51	367.85	18.81	16,605.73	3,113.93	3,394.27
52	369.69	16.97	16,975.42	3,130.90	3,024.58
53	371.54	15.12	17,346.96	3,146.02	2,653.04
54	373.39	13.27	17,720.35	3,159.29	2,279.65
55	375.26	11.40	18,095.61	3,170.69	1,904.39
56	377.14	9.52	18,472.75	3,180.21	1,527.25
57	379.02	7.64	18,851.77	3,187.85	1,148.23
58	380.92	5.74	19,232.69	3,193.59	767.31
59	382.82	3.84	19,615.51	3,197.43	384.49
60	*384.49	1.92	20,000.00	3,199.35	0.00