Bob Sample and other student investors opened Campus Carpet Cleaning, Inc. on September 1, 2010. During the first month of operations the following transactions occurred.
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1 |
Stockholders invested $20,000 cash in the business. |
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2 |
Paid $1,000 cash for store rent for the month of September. |
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3 |
Purchased industrial carpet-cleaning equipment for $25,000, paying $10,000 |
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4 |
Paid $1,200 for 1-year accident insurance policy. |
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10 |
Received bill from the Daily News for advertising the opening of the cleaning |
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15 |
Performed services on account for $6,200. |
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20 |
Paid a $700 cash dividend to stockholders. |
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30 |
Received $5,000 from customers billed on September 15. |
The chart of accounts for the company is the same as for Sierra Corporation except for the following additional accounts: Cleaning Equipment and Advertising Expense.
Instructions
(a) Journalize the September transactions.
(b) Open ledger accounts and post the September transactions.
(c) Prepare a trial balance at September 30, 2010.
