Question
You decide to open up your very own moving company. After three months of business, you realize your current accounting system (throwing all your invoices
You decide to open up your very own moving company. After three months of business, you realize your current accounting system (throwing all your invoices and moving schedules into a drawer) is no longer working. Additionally, you would like to take out a loan from the bank to purchase more moving trucks and grow your fleet. In order to do that, you need accurate financial statements of your company to present to your loan officer.
Record all transactions for your new moving company 1. Record your initial investment of $100,000 2. Record the energy bills (January, February, and March) 3. Record all moving jobs that are listed on your calendar (January, February, and March). You will record the sale, the contractor expense, and supplies expense for each job. 4. Record the two separate truck purchases and calculate depreciation for January, February, and March 5. Record the leasing agreement
Any trucks purchased will be depreciated over 12 years with no residual value. Depreciation
is calculated at the end of each month. You have a 5 year loan on all the vehicles you purchase and the payment is due the 1st of every month. You pay your movers (you consider them contractors) at $20 per man hour for each moving job. They are paid at the end of each week. You do not owe payroll taxes on their wages. You expense the cost of supplies (boxes, tape, paper) for each job. The supply cost is listed for each job on the moving calendar. You pay your bills on the due date, not when received. You take full payment from the customers on the day of the move.
ALL VALUES
Initial Investment 100,000.00 Issued January 2,2018
Dewey Cheatem, & Howe Energy Company
Date 1/31/2018 Due 2/15/2018
Amount Due $665.72
Date 2/28/2018 Due 3/15/2018
Amount Due $845.79
Date 3/31/2018 Due 4/15/2018
Amount Due $795.63
1/4/2018
Sam Smith - charge
$1,500, man hours
12, supplies $200
1/6/2018
Camila Cabello -
charge $300, man
hours 2, supplies $50
1/9/2018
Nicki Minaj - charge
$2,200, man hours
15, supplies $500
1/12/2018
G-Eazy - charge
$400, man hours 2.5,
supplies $50
1/28/2018
Imagine Dragons -
charge $350, man
hours 1.5, supplies $50
2/1/2018
Led Zeppelin -
charge $1,500, man
hours 12, supplies $300
2/4/2018
Pink Floyd - charge
$650, man hours 5,
supplies $50
2/16/2018
Aerosmith - charge
$5,000, man hours
23, supplies $1,000
2/20/2018
The Who - charge
$500, man hours 3,
supplies $50
3/10/2018
Nirvana - charge
$2,000, man hours
18, supplies $300
3/14/2018
Sonic Youth - charge
$300, man hours 1.5,
supplies $50
3/29/2018
Mumford & Sons -
charge $1,500, man
hours 12, supplies $300
1/12/2018
MOVING TRUCKS OF TEXAS, INC.
Description Cost
2015 Isuzu NPR HD Box Truck $ 34,990
2014 Isuzu NPR HD Box Truck $ 35,995
2018 RAM Promaster 3500 Box truck $ 32,495
Total Due $ 103,480
3/23/2018
MOVING TRUCKS OF TEXAS, INC.
2012 Isuzu NPR $ 22,375
2012 Isuzu NPR HD $ 25,950
Total Due $ 48,325
From: Pioneer Leasing
Regarding: Lease Term
Dear You,
This letter is to confirm the new lease terms that have been agreed
upon. You are leasing the office space on 56 North Eldorado Way in
Dallas, Texas 78545 from Pioneer Leasing for a lease term of 5 years
beginning January 1, 20XX. On this date, you will begin paying
monthly rent of $1,000, and this amount will be due on the first of
each month. In addition to the monthly rent, you will pay us a deposit
of $5,000 which will be returned to you once this lease has expired
unless there are any damages to the lease space. We appreciate your
business.
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