July 2019:(using the Excel workbook complete the followingJ

1 – Open a bank account for Peyton Approved.

1 – You take $15,000 from your personal savings account and buy common stock in Peyton Approved.

3 – Your parents lend the company $10,000 cash, in exchange for a two-year, 6% note payable. Interest and the principal are repayable at maturity.

7 – Sign a lease agreement for retail/bakery space. The agreement is for 1 year, with the option to extend the lease on a month-to-month basis after 1 year. The rent is $1,500 per month. The lease period starts on July 1, 2019, first and last month’s rent due at that time. Subsequent rents are due on the 15^th day of each month. (no entry- record this transaction on July 15^th, see below)

10 – Pay $375 to the county for a business license.

11 – Purchase a cash register for $250 (deemed to be not material enough to qualify as depreciable equipment—use misc. exp.).

13 – You have baking equipment, including an oven and mixer, that you have been using for your home-based business and will now start using in the bakery. You estimate that the equipment is currently worth $5,000, and you transfer the equipment into the business in exchange for additional common stock. The equipment has a 5-year useful life.

13 – Pay $200 for business cards/flyers/posters/ads to use for advertising.

14 – Pay $1,000 for baking ingredients (use baking supplies account).

14 – Pay $300 for miscellaneous (use misc. supplies).

15 – Hire part-time helper to be paid $12 per hour. Pay periods are the 1^st through the 15^th and 16^th through the end of the month with paydays being the 20^th for the first pay period and the 5^th of the following month for the second pay period.

15 – Pay first and last month’s rent in cash. (1,500 January rent; January 2020 rent 1,500)

16 – Open the doors of the bakery.

31 – Pay $1,200 for a 12-month insurance policy beginning February 1, 2019

31- Record sales $5,000; $2,500 paid in cash remainder paid later

31- Received telephone bill, $45, will pay on 8/5 accrue invoice