PROJECT #1 -THE COMPLETE ACCOUNTING CYCLE
Due: End of day, Sunday, Week #3.
MAKE SURE TO COMPLETE ALL 10 REQUIREMENTS WHICH ARE LISTED UNDER THREE
During its first month of operation, the Rawls Repair Corporation, which specializes in bicycle repairs,
completed the following transactions:
Began business by making a deposit in a company bank account of $12,000, in exchange
for 1,200 shares of $10 par value common stock.
Paid the premium on a one-year insurance policy, $1,200.
Paid the current month's rent, $1,040.
Purchased repair equipment from Conklin Company, $4,400. The terms were $600 down and $200
per month for nineteen months.
The first payment is due November 1.
Purchased repair supplies from McKenna Company on credit, $390.
Paid utility bill for October, $154.
Cash bicycle repair revenue for the first half of October, $1,362.
Made payment to McKenna Company, $200.
Cash bicycle repair revenue for the last half of October, $1,310.
Declared and paid cash dividend of $800.
Prepare journal entries to record the October transactions in the General Journal below.