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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 #100to 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 #101to 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.

NOTE: You will need to create a loan amortization schedule to determine the amount of the monthly note and the interest expense for each month. You can use a website such as www.bankrate.comto create the schedule. When recording your journal entries, round all amounts to the nearest dollar.

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 #103to 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^thof 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 #105was 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.

The following events occurred in October:

10/1 You paid the monthly office rent of $500 by issuing check #106.

10/1 Pest Away began bi-monthly services today. Fees are to be paid at the time of service. You issued check #109in the amount of $35.

10/2 You received and paid the bill from the Apple Store by issuing check #107.

10/4 You make the first monthly payment to Pig E Banks by issuing check #108.

10/5 Igotta Troubles came to your office looking for assistance with cleaning up her accounting problems. You agree to assist her and agree upon an Engagement Fee of $2,000 plus an hourly charge of $250 for Hourly Accounting Services to be billed on the 15^thand 30^thof each month with payment due in 15 days. Igotta writes you a check for the engagement fee in the amount of $2,000 in payment of invoice #5.

10/5 You issued check #109to Mandi Handi for the September payroll.

10/6 You paid your monthly payment of $165 to InsureMart by issuing check #110.

10/7 You received a check from Red Fische in full payment of invoice #3.

10/9 You decide that it is time to purchase a business cell phone. You visit the Apple store and purchase an Iphone 7 for a total purchase price of $849. You pay for the phone by issuing check #111.

10/12You issued check #112to Max Power and check #113to WaterWorks #1 in payment of September utility bills.

10/14You sent invoice #6 to Igotta Troubles for 25 hours of Hourly Accounting Services,

terms 1/10, n30.

10/15You made an online purchase of $180 with YOUR Accounting Corp.s bank debit card to YourSuppliesOnline. There were no sales tax collected on the purchase. There is a parish sales tax of 4.5% and a state sales tax of 5.5% that is due before the 21^stof next month. Totals should be rounded to the nearest dollar.

10/16 You paid the fuel bill from Get n Go for the fuel purchased on 9/22 by issuing check #114.

10/18Ima Payne comes to you needing assistance with depositing the monthly payroll taxes for her business. You perform this service and hand her invoice #7 in the amount of $500 for Tax Services. Ima pays you in cash.

10/20You received a check from Cooking For You in full payment of Invoice #4.

10/25 You Accounting Corp. declared and paid dividends of $4 per share to its shareholders of record. The dividends are paid by issuing check #115.

10/25Check #116was issued to Clean Machine in the amount of $100 for services rendered from 9/25-10/25.

10/30 You sent the following invoices, terms 1/10, net 30:

#8 to Igotta Troubles for 10 hours of Hourly Accounting Services

#9 to Red Fische for Monthly Accounting Services, and

#10 to Cooking For You for Monthly Accounting Services.

10/30You accrued interest on the Pig E. Bank note. Accrue interest based on the number of days in the month.

10/30You computed and accrued the payroll for October.

10/30First Funds Bank drafted $15 from your bank account for service charges.

10/30You received monthly bills for the following:

Max Power Company - $200, terms n/30

WaterWorks #1 - $20, terms n/30

Great Coverage Cellular - $50, terms n/3

Assignment #1: For the Month of October

• In proper General Journal format, record the transactions for the month; include descriptions of each transaction with your journal entry. Use only the accounts shown in the chart of accounts.

• Post the journal entries for the month to the general ledger accounts, use appropriate posting references.
• Prepare a trial balance at the end of the period ending October 30.
  • Using proper format, create your trial balance in Microsoft Excel.
  • Submit the trial balance in class.
  • Retain your general journals and ledgers until you have completed assignment #7.

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