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 600 shares of common stock by issuing a check to YOUR Accounting Corp for $12,000. 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 month's rent due immediately. You issue check #100 to Office Builders for the first month's rent. 9/1 You turned on utilities with Max Power Co. and WaterWorks #1. Max Power Co. collected a $50 deposit. Waterworks #1 collected a $20 deposit. You issued check #'s 101 and 102, respectively 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 $500. 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 #103 to pay for the items. NOTE: The total for the office furniture is below the capitalization threshold. 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 5 years. Your first monthly payment is due on October 4. 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 600 shares of common stock by issuing a check to YOUR Accounting Corp for $12,000. 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 month's rent due immediately. You issue check #100 to Office Builders for the first month's rent. 9/1 You turned on utilities with Max Power Co. and WaterWorks #1. Max Power Co. collected a $50 deposit. Waterworks #1 collected a $20 deposit. You issued check #'s 101 and 102, respectively 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 $500. 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 #103 to pay for the items. NOTE: The total for the office furniture is below the capitalization threshold. 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 5 years. Your first monthly payment is due on October 4
