Project1 - Oct. 19 Made payment to McKenna Company, $200....

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During its first month of operation, the Rawls Repair Corporation, which specializes in bicycle repairs, completed the following transactions: Oct. 1 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. Oct. 1 Paid the premium on a one-year insurance policy, $1,200. Oct. 1 Paid the current month's rent, $1,040. Oct. 3 Purchased repair equipment from Conklin Company, $4,400. Paid $600 down and the balance wa placed on account. Payments will be $200.00 per month for nineteen months. The first payment i Oct. 8 Purchased repair supplies from McKenna Company on credit, $390. Oct. 12 Paid utility bill for October, $154. Oct. 16 Cash bicycle repair revenue for the first half of October, $1,362.
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Unformatted text preview: Oct. 19 Made payment to McKenna Company, $200. Oct. 31 Cash bicycle repair revenue for the last half of October, $1,310. Oct. 31 Declared and paid cash dividend of $800. Prepare journal entries to record the October transactions in the General Journal below. General Journal Date Description(Account Name) Debit Credit Oct. 1 Cash $12,000 Common Stock $12,000 Issued common stock Oct. 1 Pre-Paid Insurance $1,200 Cash $1,200 Prepaid for monthly insurance Oct. 1 Store Rent Expense $1,040 Cash $1,040 Paid cash for rent Oct. 3 Repair Equipment $4,400 Accounts Payable $3,800 Cash $600 Prepaid repair equipment Oct. 8 Repair Supplies $390 Accounts Payable $390 Purchased supplies on account Oct. 12 Utility Expense $154...
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Project1 - Oct. 19 Made payment to McKenna Company, $200....

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