Demonstration Problem Bob Sample opened the Campus Laundromat on September 1, 2005. During the first month of operations the following transactions occurred. Sept. 1 Invested $20,000 cash in the business . 2 Paid $1,000 cash for store rent for the month of 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 one-year accident insurance policy. 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 in Pioneer Advertising Agency except for the following: No. 154 Laundry Equipment and No. 610 Advertising Expense. Instructions (a) Journalize the September transactions. (Use J1 for the journal page number.) (b) Open ledger accounts and post the September transactions. (c) Prepare a trial balance at September 30, 2005 SOLUTION TO DEMONSTRATION PROBLEM (a) General Journal J1 DATE
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This note was uploaded on 02/24/2012 for the course ACCOUNTING 504 taught by Professor Abeer during the Spring '09 term at Yarmouk University.