Project1InstructionsandWorkbookB - Oct. 12 Paid utility...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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 Note: Use Accounts Payable for the Balance Due. Oct. 8 Purchased repair supplies from McKenna Company on credit, $390.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Oct. 12 Paid utility bill for October, $154. Oct. 16 Cash bicycle repair revenue for the first half of October, $1,362. 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 1-Oct Cash 12,000 Common Stock 12,000 1-Oct Prepaid Insurance 1,200 Cash 1,200 1-Oct Store Rent Expense 1,040 Cash 1,040 3-Oct Repair Equipment 4,400 Cash 600 Accounts Payable 3,800 8-Oct Repair Supplies 390 Accounts Payable 390...
View Full Document

This note was uploaded on 05/23/2010 for the course ACCT ACCT212 taught by Professor Errico during the Spring '10 term at DeVry Chicago O'Hare.

Ask a homework question - tutors are online