question archive Exercise (2): Bob Sample opened the Campus Laundromat on September 1, 2008
Exercise (2): Bob Sample opened the Campus Laundromat on September 1, 2008
Subject:AccountingPrice: Bought3
Exercise (2): Bob Sample opened the Campus Laundromat on September 1, 2008. During the first month of operations the following occurred. Sept. 1 Invested $20,000 cash in the business. 2 Paid $1,000 cash for store rent for September. 3 Purchased washers and dryers for $25,000, paying $10,000 in cash and signing a $15,000, 6-month, 12% note payable. 4 Paid $1,200 for a one-year accident insurance policy. 10 Received a bill from the Daily News for advertising the opening of the laundromat $200. 20 Withdrew $700 cash for personal use. 30 Determined that cash receipts for laundry services for the month were $6,200. The chart of accounts for the company is the same as that for Pioneer Advertising Agency plus the following: No. 154 Laundry Equipment and No. 610 Advertising Expense. Instructions (a) Journalize the September transactions. (Use JI for the journal page number.) (c) Prepare a trial balance at September 30, 2008.
