Question

Bob Sample opened the Campus Laundromat on September 1, 2017. During the first month of operations, the following transactions occurred. Sep. 1 Bob invested $20,000 cash in the business. Sep. 2 The company paid $1,000 cash for store rent for September. Sep. 3 Purchased washers and dryers for $25,000, paying $10,000 in cash and signing a $15,000, 6-month, 12% note payable Sep. 4 Paid $1,200 for a one-year accident insurance policy. Sep. 10 Received a bill from the Daily News for online advertising of the opening of the laundromat $200. Sep. 20 Bob withdrew $700 cash for personal use. Sep. 30 The company determined that cash receipts for laundry services for the month were $6,200. Question1 Journalize the September transactions. (Use J1 for the journal page number.) (in General journal table) Question2. Open ledger accounts and post the September transactions Question3. Prepare a trial balance at September 30, 2017

Answer 1

1)

Date	Account Titles and Explanation					Ref.	Debit	Credit
Sep-01	Cash					101	20,000
	Owner's Capital					301		20,000
Sep-02	Rent Expense					729	1,000
	Cash					101		1,000
Sep-03	Equipment					157	25,000
	Cash					101		10,000
	Notes Payable					200		15,000
Sep-04	Prepaid Insurance					130	1,200
	Cash					101		1,200
Sep-10	Advertising Expense					610	200
	Accounts Payable					201		200
Sep-20	Owner's Draw					306	700
	Cash					101		700
Sep-30	Cash					101	6,200
	Service Revenue					400		6,200

2)

Cash			No. 101
Date	Debit	Credit	Balance
01-Sep	$ 20,000.00		$ 20,000.00
02-Sep		$    1,000.00	$ 19,000.00
03-Sep		$ 10,000.00	$    9,000.00
04-Sep		$    1,200.00	$    7,800.00
20-Sep		$        700.00	$    7,100.00
30-Sep	$    6,200.00		$ 13,300.00
Prepaid Insurance			No. 130
Date	Debit	Credit	Balance
04-Sep	$    1,200.00		$    1,200.00
Equipment			No. 157
Date	Debit	Credit	Balance
03-Sep	$ 25,000.00		$ 25,000.00
Notes Payable			No. 200
Date	Debit	Credit	Balance
03-Sep		$ 15,000.00	$ 15,000.00
Accounts Payable			No. 201
Date	Debit	Credit	Balance
10-Sep		$        200.00	$        200.00
Owner's Capital			No. 301
Date	Debit	Credit	Balance
01-Sep		$ 20,000.00	$ 20,000.00
Owner's Draw			No. 306
Date	Debit	Credit	Balance
20-Sep	$        700.00		$        700.00
Service Revenue			No. 400
Date	Debit	Credit	Balance
30-Sep		$    6,200.00	$    6,200.00
Advertising Expense			No. 610
Date	Debit	Credit	Balance
10-Sep	$        200.00		$        200.00
Rent Expense			No. 729
	Debit	Credit	Balance
02-Sep	$    1,000.00		$    1,000.00

3)

Campus Laundromat
Trial Balance
	Debit	Credit
Cash	$ 13,300.00
Prepaid Insurance	$    1,200.00
Equipment	$ 25,000.00
Notes Payable		$ 15,000.00
Accounts Payable		$        200.00
Owner's Capital		$ 20,000.00
Owner's Draw	$        700.00
Service Revenue		$    6,200.00
Advertising Expense	$        200.00
Rent Expense	$    1,000.00
Total	$ 41,400.00	$ 41,400.00