Bob Sample

[logistic_guy]

Bob Sample opened the Campus Laundromat on September \(\displaystyle 1, 2017\). During the first month of operations, the following transactions occurred.

\(\displaystyle \bold{1.}\) Bob invested \(\displaystyle \$ 20,000\) cash in the business.
\(\displaystyle \bold{2.}\) The company paid \(\displaystyle \$ 1,000\) cash for store rent for September.
\(\displaystyle \bold{3.}\) Purchased washers and dryers for \(\displaystyle \$ 25,000\), paying \(\displaystyle \$ 10,000\) in cash and signing a \(\displaystyle \$ 15,000, 6\)-month, \(\displaystyle 12\%\) note payable.
\(\displaystyle \bold{4.}\) Paid \(\displaystyle \$ 1,200\) for a one-year accident insurance policy.
\(\displaystyle \bold{10.}\) Received a bill from the Daily News for online advertising of the opening of the laundromat \(\displaystyle \$ 200\).
\(\displaystyle \bold{20.}\) Bob withdrew \(\displaystyle \$ 700\) cash for personal use.
\(\displaystyle \bold{30.}\) The company determined that cash receipts for laundry services for the month were \(\displaystyle \$ 6,200\).

The chart of accounts for the company is the same as that for Pioneer Advertising plus \(\displaystyle \text{No.} \ 610\) Advertising Expense.

Instructions

\(\displaystyle \bold{(a)}\) Journalize the September transactions. (Use \(\displaystyle \text{J1}\) for the journal page number.)
\(\displaystyle \bold{(b)}\) Open ledger accounts and post the September transactions.
\(\displaystyle \bold{(c)}\) Prepare a trial balance at September \(\displaystyle 30, 2017\).

 

[logistic_guy]

\(\displaystyle \bold{1.}\) Bob invested \(\displaystyle \$ 20,000\) cash in the business.

\(\displaystyle \textbf{General Journal} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \bold{J1}\)​

Date​	Account​	Ref.​	Debit​	Credit​
1​	Cash​	101​	20,000​	​
​	Owner's Capital​	301​	​	20,000​

 

[logistic_guy]

\(\displaystyle \bold{2.}\) The company paid \(\displaystyle \$ 1,000\) cash for store rent for September.

Date​	Account​	Ref.​	Debit​	Credit​
2​	Rent Expense​	729​	1,000​	​
​	Cash​	101​	​	1,000​

 

[logistic_guy]

\(\displaystyle \bold{3.}\) Purchased washers and dryers for \(\displaystyle \$ 25,000\), paying \(\displaystyle \$ 10,000\) in cash and signing a \(\displaystyle \$ 15,000, 6\)-month, \(\displaystyle 12\%\) note payable.

Date​	Account​	Ref.​	Debit​	Credit​
3​	Equipment​	157​	25,000​	​
​	Cash​	101​	​	10,000​
​	Notes Payable​	200​	​	15,000​

 

[logistic_guy]

\(\displaystyle \bold{4.}\) Paid \(\displaystyle \$ 1,200\) for a one-year accident insurance policy.

Date​	Account​	Ref.​	Debit​	Credit​
4​	Prepaid Insurance​	130​	1,200​	​
​	Cash​	101​	​	1,200​

 

[logistic_guy]

\(\displaystyle \bold{10.}\) Received a bill from the Daily News for online advertising of the opening of the laundromat \(\displaystyle \$ 200\).

Date​	Account​	Ref.​	Debit​	Credit​
10​	Advertising Expense​	610​	200​	​
​	Accounts Payable​	201​	​	200​

 

[logistic_guy]

\(\displaystyle \bold{20.}\) Bob withdrew \(\displaystyle \$ 700\) cash for personal use.

Date​	Account​	Ref.​	Debit​	Credit​
20​	Owner's Drawings​	306​	700​	​
​	Cash​	101​	​	700​

 

[logistic_guy]

\(\displaystyle \bold{30.}\) The company determined that cash receipts for laundry services for the month were \(\displaystyle \$ 6,200\).

Date​	Account​	Ref.​	Debit​	Credit​
30​	Cash​	101​	6,200​	​
​	Service Revenue​	400​	​	6,200​

 

[logistic_guy]

\(\displaystyle \bold{(b)}\)

General Ledger​

\(\displaystyle \text{Cash} \ \ \ \ \ \ \ \ \ \ \text{No.} \ 101\)​

2017 September​	Ref.​	Debit​	Credit​	Balance​
1​	J1​	20,000​	​	20,000​
2​	J1​	​	1,000​	19,000​
3​	J1​	​	10,000​	9,000​
4​	J1​	​	1,200​	7,800​
20​	J1​	​	700​	7,100​
30​	J1​	6,200​	​	13,300​

 

[jonah2.0]

Beer drenched ramblings follow.

Bob Sample opened the Campus Laundromat on September \(\displaystyle 1, 2017\). During the first month of operations, the following transactions occurred.

\(\displaystyle \bold{1.}\) Bob invested \(\displaystyle \$ 20,000\) cash in the business.
\(\displaystyle \bold{2.}\) The company paid \(\displaystyle \$ 1,000\) cash for store rent for September.
\(\displaystyle \bold{3.}\) Purchased washers and dryers for \(\displaystyle \$ 25,000\), paying \(\displaystyle \$ 10,000\) in cash and signing a \(\displaystyle \$ 15,000, 6\)-month, \(\displaystyle 12\%\) note payable.
\(\displaystyle \bold{4.}\) Paid \(\displaystyle \$ 1,200\) for a one-year accident insurance policy.
\(\displaystyle \bold{10.}\) Received a bill from the Daily News for online advertising of the opening of the laundromat \(\displaystyle \$ 200\).
\(\displaystyle \bold{20.}\) Bob withdrew \(\displaystyle \$ 700\) cash for personal use.
\(\displaystyle \bold{30.}\) The company determined that cash receipts for laundry services for the month were \(\displaystyle \$ 6,200\).

The chart of accounts for the company is the same as that for Pioneer Advertising plus \(\displaystyle \text{No.} \ 610\) Advertising Expense.

Instructions

\(\displaystyle \bold{(a)}\) Journalize the September transactions. (Use \(\displaystyle \text{J1}\) for the journal page number.)
\(\displaystyle \bold{(b)}\) Open ledger accounts and post the September transactions.
\(\displaystyle \bold{(c)}\) Prepare a trial balance at September \(\displaystyle 30, 2017\).

View attachment 39135

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[logistic_guy]

\(\displaystyle \text{Prepaid Insurance} \ \ \ \ \ \ \ \ \ \ \text{No.} \ 130\)​

2017 September​	Ref.​	Debit​	Credit​	Balance​
4​	J1​	1,200​	​	1,200​