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computer system has an estimated useful life of 4 years and the residual (salvage) value is $0. This will be recorded as Computer Equipment, and depreciated using the Straight-Line Depreciation method accordingly 6. | 9/05/18 | Deposit #2 | Signed a note payable to borrow $5,000 from Wells Fargo Bank. Interest is 9% annually and the note is to be repaid with interest in six months. 7. | 9/05/18 | ck #1003 | Purchased a delivery van for $16,000 from Marvin's Motors. The estimated service life of this asset is 5 years. The residual (salvage value) is $1,000. This will be recorded as Delivery Van and depreciated using the Straight-Line Depreciation Method 8. | 9/06/18 | ck #1004 | Paid $600 to have Bailey's logo painted on the side of the van. This should be added to the cost of the van and depreciated over the life of the van 9. | 9/06/18 10. 9/08/18 11. 9/08/18 12. | 9/13/18 | ck #1005 | Paid $500 for business cards, flyers, and posters. This will be recorded as prepaid advertising. Purchased $900 of inventory-helium from Hector's Helium on account. The vendor extended credit terms of 2/15, n/30 Purchased $6,200 of inventory-balloons from Balloon Blast on account. The vendor extended credit terms are 2/15 n/30. | ck #1006 | M. Boone received and paid the $800 charge from her lawyer 13. 9/18/18 Bailey's Balloon Bouquet is now open for business. Sales will be both retail and wholesale. Retail customers will purchase online and at the shop and will be charged an 8.25% sales tax. Ms. Boone will allow major customers to charge their purchases on account and then pay later Sold balloon arch to UTEP for homecoming on account for $4,000 The cost of the balloons is $1,700. The cost of the helium is $500. UTEP does not have to pay sales tax on the purchase Purchased $300 of string (used in making the arrangements) on account. This is to be treated as prepaid supplies. Purchased additional balloons from Balloon Blast on account, for $7,500. Credit terms were 2/10, n/30 Recorded cash sales for the first five days of operation. Sales 14. 9/18/18 15. 9/18/18 16. 9/18/18 17. 9/19/18 | Deposit #3 totaled $6000 and the sales tax collected totaled $495. A total of $6,495 was deposited in the bank. The cost of merchandise sold was $4,200. (Balloons were $3,900 and helium was $300) 18,19/20/18 |Ck #1007 |Received and paid the S300 invoice for supplies, string, purchased Paid the invoice frorm Hector's Helium from 9 18/18. Ordered $700 of helium on account. n 9/18/18 19, 9/22/18 20. 9/22/18 Ck #1008 7|Page computer system has an estimated useful life of 4 years and the residual (salvage) value is $0. This will be recorded as Computer Equipment, and depreciated using the Straight-Line Depreciation method accordingly 6. | 9/05/18 | Deposit #2 | Signed a note payable to borrow $5,000 from Wells Fargo Bank. Interest is 9% annually and the note is to be repaid with interest in six months. 7. | 9/05/18 | ck #1003 | Purchased a delivery van for $16,000 from Marvin's Motors. The estimated service life of this asset is 5 years. The residual (salvage value) is $1,000. This will be recorded as Delivery Van and depreciated using the Straight-Line Depreciation Method 8. | 9/06/18 | ck #1004 | Paid $600 to have Bailey's logo painted on the side of the van. This should be added to the cost of the van and depreciated over the life of the van 9. | 9/06/18 10. 9/08/18 11. 9/08/18 12. | 9/13/18 | ck #1005 | Paid $500 for business cards, flyers, and posters. This will be recorded as prepaid advertising. Purchased $900 of inventory-helium from Hector's Helium on account. The vendor extended credit terms of 2/15, n/30 Purchased $6,200 of inventory-balloons from Balloon Blast on account. The vendor extended credit terms are 2/15 n/30. | ck #1006 | M. Boone received and paid the $800 charge from her lawyer 13. 9/18/18 Bailey's Balloon Bouquet is now open for business. Sales will be both retail and wholesale. Retail customers will purchase online and at the shop and will be charged an 8.25% sales tax. Ms. Boone will allow major customers to charge their purchases on account and then pay later Sold balloon arch to UTEP for homecoming on account for $4,000 The cost of the balloons is $1,700. The cost of the helium is $500. UTEP does not have to pay sales tax on the purchase Purchased $300 of string (used in making the arrangements) on account. This is to be treated as prepaid supplies. Purchased additional balloons from Balloon Blast on account, for $7,500. Credit terms were 2/10, n/30 Recorded cash sales for the first five days of operation. Sales 14. 9/18/18 15. 9/18/18 16. 9/18/18 17. 9/19/18 | Deposit #3 totaled $6000 and the sales tax collected totaled $495. A total of $6,495 was deposited in the bank. The cost of merchandise sold was $4,200. (Balloons were $3,900 and helium was $300) 18,19/20/18 |Ck #1007 |Received and paid the S300 invoice for supplies, string, purchased Paid the invoice frorm Hector's Helium from 9 18/18. Ordered $700 of helium on account. n 9/18/18 19, 9/22/18 20. 9/22/18 Ck #1008 7|Page

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