NenaCo. STARTING THE BUSINESS
JOURNAL ENTRIES: PART -1
You Started a business called NenaCo. and have had the following transactions to get "up and running".
1/ 1 You setup a corporation and you invested all your savings amounting to $30,000 in the company to get it started.
1/ 2 Now that you have thought it over, you figure your original investment might not be enough. So the company obtains additional financing by borrowing another $20,000 from a local bank for two years at 12% interest.
1/ 3 Entered into a two-year lease for a shop to conduct operations. The rent is $2,000 per month and the company is required to pay the first (January) and last months rent upon signing the lease. In addition a security deposit of $500 is required.
1/ 4 As it would be nice to have something to put in our store, the company decides to buy furniture and fixtures for $15,000.
1/ 5 A security alarm is installed in the store. The cost of the alarm is $1,200; the guy who installed the alarm gives you a bill. You decide to pay the bill next month.
1/ 6 As things seem to be moving along, you figure out the business needs something to sell. So, the company purchases $20,000 worth of merchandise. The supplier lowering the purchase price gave a 10% new customer discount by $2,000. The merchandise is purchased on account.
1/ 7 As you need a little more capacity, an additional display rack is purchased for $5,000 cash.
1/ 8 A phone would be nice. The company has one installed for $2,500 cash. (It's nice)
1/ 9 The company purchases a six-month operating permit from the city for $1,200 ($200 per month) cash. The permit allows the business to operate for six months starting from Jan 1st.
1/ 10 The company decides to hire a new secretary for $1,000 per month. No contract is signed, but a verbal agreement is reached stating the secretary will start work on February 1st.
1/ 11 Payment is made on half the merchandi...