YAC 1

The following events occurred in August and September:

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 #103 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.

9/30 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.

This what you need:

CHART OF ACCOUNTS

Cash	105
Petty Cash	107
Accounts Receivable	110
Supplies on Hand	130
Prepaid Insurance	140
Computer Equipment	220
Accumulated Depreciation Computer Equipment	221
Cell Phone	230
Accumulated Depreciation Cell Phone	231
Vehicles	240
Accumulated Depreciation - Vehicles	241
Accounts Payable	310
Customer Deposits (Unearned Revenue)	320
SUTA Payable	330
FICA Payable	332
FUTA Payable	334
Federal Income Tax Payable	336
State Income Tax Payable	338
Current Maturities of Long-Term Debt	375
Notes Payable (long-term)	410
Interest Payable	420
Salaries Payable	425
Common Stock ($2 par value)	520
Additional Paid-in Capital on Common Stock	521
Retained Earnings	550
Dividends	560
Engagement fees	605
Monthly Accounting Services Revenue	610
Hourly Accounting Services Revenue	620
Tax Services Revenues	612
Sales Discounts	614
Advertising & Promotion Expense	725
Depreciation Expense	727
Rent Expense	730
Insurance Expense	735
Supplies Expense	740
Meals & Entertainment	745
Taxes and Licenses	767
Telephone Expense	770
Utilities Expense	775
Fuel Expense	780
Interest Expense	820
Payroll Tax Expense	825
Salaries Expense	830
Income Summay	900
Part one is done: Following are the journal entries for the events occurred in August and September. 8/1 - filing a charter with the State Taxes and Licenses Fees - Debit $75 To Accounts Payable - Credit $75 (record of charter fees paid to State of Louisiana from his personal funds which will be repaid from business account later) 9/1 - in books of Accounting Corp books for Issuing share Cash - Debit $10,000 To Common Stock $10,000 (record of issues of common stock) 9/1 - monthly rent is $500 Rent Expense - Debit $500 To Cash -Credit $500 (record of rent expenses) 9/2 - purchased a new computer system Computer Equipment (Mac Pro)- Debit $27,000 Computer Equipment ( Printer) - Debit $450 To Cash - Credit $450 To Accounts Payable - Credit $27,000 (record of purchase of computer Mac Pro with Apple Inc and purchase of printer) 9/3 - Ordered business cards and stationary Supplies Expense - Debit $250 To Accounts Payable - Credit $250 (record of ordering business cards and stationary) 9/4 - Purchase of new vehicle Vehicles - Debit $55,000 To Notes Payable (long-term)- Credit $55,000 (record of purchase of SUV from Pig E Bank) 9/5 - Purchase of supplies Supplies Expense - Debit $600 To Accounts Payable - Credit $600 (record of purchase of office supplied from KEM supply) Note: Discount received is not accounted because payment is not made yet) 9/6 - Purchase of auto insurance Prepaid Insurance - Debit $1,200 To Cash - Credit $1,200 (record of purchase of auto insurance ) 9/10 - Filling paper work for Red Fische Cash - Debit $2,000 To Engagement fees $2,000 (record of receipt of Management fees - revenue Red Fische) 9/12 - Establish Perry cash fund Petty Cash - Debit - $500 To Cash - Credit $500 (record of establishing petty cash fund) 9/12 Reimbursement of filling fees Accounts Payable - Debit $75 To Cash - Credit $75 (record of reimbursement of charter fees paid by personal fund) 9/14 - Issue check # 102 to KEM Accounts Payable - Debit $600 To Cash - Credit $600 (record of check payment to KEM) I need what after this part.