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​

 

[logistic_guy]

$\displaystyle \text{Equipment} \ \ \ \ \ \ \ \ \ \ \text{No.} \ 157$​

2017 September​	Ref.​	Debit​	Credit​	Balance​
3​	J1​	25,000​	​	25,000​

 

[logistic_guy]

$\displaystyle \text{Notes Payable} \ \ \ \ \ \ \ \ \ \ \text{No.} \ 200$​

2017 September​	Ref.​	Debit​	Credit​	Balance​
3​	J1​	​	15,000​	15,000​

 

[logistic_guy]

$\displaystyle \text{Accounts Payable} \ \ \ \ \ \ \ \ \ \ \text{No.} \ 201$​

2017 September​	Ref.​	Debit​	Credit​	Balance​
10​	J1​	​	200​	200​

 

[logistic_guy]

$\displaystyle \text{Owner's Capital} \ \ \ \ \ \ \ \ \ \ \text{No.} \ 301$​

2017 September​	Ref.​	Debit​	Credit​	Balance​
1​	J1​	​	20,000​	20,000​

 

[logistic_guy]

$\displaystyle \text{Owner's Drawings} \ \ \ \ \ \ \ \ \ \ \text{No.} \ 306$​

2017 September​	Ref.​	Debit​	Credit​	Balance​
20​	J1​	700​	​	700​

 

[logistic_guy]

$\displaystyle \text{Service Revenue} \ \ \ \ \ \ \ \ \ \ \text{No.} \ 400$​

2017 September​	Ref.​	Debit​	Credit​	Balance​
30​	J1​	​	6,200​	6,200​

 

[logistic_guy]

$\displaystyle \text{Advertising Expense} \ \ \ \ \ \ \ \ \ \ \text{No.} \ 610$​

2017 September​	Ref.​	Debit​	Credit​	Balance​
10​	J1​	200​	​	200​

 

[logistic_guy]

$\displaystyle \text{Rent Expense} \ \ \ \ \ \ \ \ \ \ \text{No.} \ 729$​

2017 September​	Ref.​	Debit​	Credit​	Balance​
2​	J1​	1,000​	​	1,000​

 

[logistic_guy]

$\displaystyle \bold{(c)}$

	Trial Balance September 30, 2017​	Trial Balance September 30, 2017​
	Debit​	Credit​
Cash​	13,300​
Prepaid Insurance​	1,200​
Equipment​	25,000​
Notes Payable​		15,000​
Accounts Payable​		200​
Owner's Capital​		20,000​
Owner's Drawings​	700​
Service Revenue​		6,200​
Advertising Expense​	200​
Rent Expense​	1,000​
	41,400​	41,400​