The following events occurred in August and September:

8/1 YOU filed a charter with the State of Louisiana to form the YOUR Accounting Corporation. The charter authorizes you to issue 5000 shares of $2 par common stock. The state charged you a $75 fee to file the charter. Since your business is not yet approved, you had to pay this fee using personal funds.

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 of YOUR Accounting Corp. To do this, you purchased 500 shares of common stock by issuing a check to YOUR Accounting Corp for $10,000. You used this money to open a checking account at First Funds Bank.

9/1 You rented an office for YOUR Accounting Corp. The monthly rent is $500, with the first months rent due immediately. You issue check #100 to Office Builders for the first months rent.

9/2 You then went to the Apple store and purchased a new computer system for your business. Your Mac Pro cost $2700 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 $1750. You issued check #101 to pay for the items. NOTE: The total for the office furniture is below the capitalization threshold.

9/3 You ordered business cards and stationary from Marketing Media on account. The order totaled $250 and will be shipped FOB Destination. (Record all purchases of supplies in the Supplies on Hand account).

9/4 You decided to purchase a new vehicle for your business. Upon visiting Pro-Auto, you decide on a new SUV at a cost of $55,000. This vehicle will be used 100% for business purposes. You finance the vehicle with Pig E Bank at a rate of 5% for 6 years. Your first monthly payment is due on October 4.

9/5 You purchased supplies from KEM Supply for your business at a cost of $600. KEM opened a customer charge account for you. The payment terms on your account will be 2/10, net 30. The time period for determining the payment amount begins on the purchase date.

9/6 You purchased a one-year auto insurance policy from InsureMart for $1200. InsureMart gave you an invoice for the policy. YOUR Accounting Corporation capitalizes the insurance policy and records an expense at year-end for the expired portion of the policy.

9/6 You purchased a one-year Renters Insurance policy 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 #102 in the amount of $165.

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 $2,000 Engagement Fee. Red Fische also agreed to contract with you to provide accounting services for $2,500 per month.

9/12 You issue check #103 to YOUR Accounting Corp to establish a $500 Petty Cash Fund. You will use this account to make small cash purchases.

9/12 You reimburse yourself for the filing fees associated with forming your corporation.

9/14 You paid KEM Supply by issuing check #104.

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 5^th 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 Accounting Corp. 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%.

9/16 Marketing Media delivered your business cards and stationary. Check #105 was issued to pay for the supplies.

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 $1,500 for you to handle her ongoing accounting needs.

9/22 You purchased $50 of fuel for your new SUV 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 $100 per month after services are performed.

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 note. Accrue interest based on the number of days in the month.

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.

Assignment #1: For the Month of September

• In proper General Journal format, record the transactions for the month; include descriptions of each transaction with your journal entry.

	GENERAL JOURNAL
	General Journal - Page 1
Date	Accounts & Explanation	PR	Debit	Credit
1-Sep	Cash	105	10,000
	Common Stock ($2 par)	520		1,000
	Additional Paid-in Capital	521		9,000

• Post the journal entries for the month to the general ledger accounts, use appropriate posting references. You will need to create a General Ledger for each account being used. An example of a ledger is presented below. Your ledger accounts should be prepared in excel.

		General Ledger
Account: Cash			Account #: 105
Date	Explanation	REF	Debit	Credit	Balance
1-Sep		j1	10,000		10,000

• Prepare a trial balance at the end of the period ending September 30.
  • Using proper format, create your trial balance in Microsoft Excel. Include, in the order presented, all accounts from the chart of accounts. See the textbook for an example trial balance format.