Question

Bob Sample and other student investors opened the Campus Laundromat Inc. on September 1, 2019. During the first month of operations the following transactions occurred.

Transection date	Transections description
September 1	Stockholders invested RM20, 000 cash in the business.
September 2	Paid RM1, 000 cash for store rent for the month of September.
September 3	Purchased washers and dryers for RM25, 000, paying RM10, 000 in cash and signing a RM15, 000, 6-month, 12% note payable.
September 4	Paid RM1, 200 for one-year accident insurance policy.
September 10	Received bill from the Daily News for advertising the opening of the laundromat $200.
September 15	Determined that cash receipts for laundry fees for the month were $6,200.
September 20	Declared and paid a cash dividend to stockholders $700.
September 30	Received RM5,000 from the customers billed on September 15

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, 2019.

Answer 1

			RM
01-Sep	Cash/Bank A/c	DR	20000
	Share Holders a/c	CR	20000
02-Sep	Rent a/c	DR	1000
	Cash/Bank a/c	CR	1000
03-Sep	Washers & Dryers	DR	25000
	Cash/Bank a/c	CR	10000
	12% Bills Payable	CR	15000
04-Sep	Insurance Premium	DR	1200
	Cash/Bank a/c	CR	1200
10-Sep	Advertisement a/c	DR	200
	Daily News a/c	CR	200
15-Sep	Bills receivable a/c	DR	6200
	Laundry Fees	CR	6200
20-Sep	Dividend a/c	DR	700
	Cash/Bank a/c	CR	700
30-Sep	Cash/Bank a/c	DR	5000
	Bills receivable a/c	CR	5000

Cash/Bank a/c
DATE		RM	DATE		RM
01-Sep	Share Holders a/c	20000	02-Sep	Rent a/c	1000
30-Sep	Bills receivable a/c	5000	03-Sep	Washers & Dryers	10000
			04-Sep	Insurance Premium	1200
			20-Sep	Dividend a/c	700
			30-Sep	Transferred to Balance sheet	12100
		25000			25000
Share Holders a/c
DATE		RM	DATE		RM
30-Sep	Transferred to Balance sheet	20000	01-Sep	Cash/Bank a/c	20000
		20000			20000
Rent a/c
DATE		RM	DATE		RM
02-Sep	Cash/Bank a/c	1000	30-Sep	Transferred to P&L a/c	1000
		1000			1000
Washers & Dryers
DATE		RM	DATE		RM
03-Sep	Cash/Bank a/c	10000	30-Sep	Transferred to Balance sheet	25000
03-Sep	12% Bills Payable	15000
		25000			25000
12% Bills Payable
DATE		RM	DATE		RM
30-Sep	Transferred to Balance sheet	15000	03-Sep	Washers & Dryers	15000
		15000			15000
Insurance Premium
DATE		RM	DATE		RM
04-Sep	Cash/Bank a/c	1200	30-Sep	Transferred to P&L a/c	1200
		1200			1200
Advertisement a/c
DATE		RM	DATE		RM
12-Sep	Daily News a/c	200	30-Sep	Transferred to P&L a/c	200
		200			200
Daily News a/c
DATE		RM	DATE		RM
30-Sep	Transferred to Balance sheet	200	12-Sep	Advertisement a/c	200
		200			200
Bills receivable a/c
DATE		RM	DATE		RM
15-Sep	Laundry Fees	6200	30-Sep	Cash/Bank a/c	5000
			30-Sep	Transferred to Balalnce Sheet	1200
		6200			6200
Laundry Fees
DATE		RM	DATE		RM
30-Sep	Transferred to P&L a/c	6200	15-Sep	Bills receivable a/c	6200
		6200			6200
Dividend a/c
DATE		RM	DATE		RM
20-Sep	Cash/Bank a/c	700	30-Sep	Transferred to P&L a/c	700
		700			700

TRIAL BALALNCE as on 30th September
	DR	CR
Cash/Bank a/c	12100
Share Holders a/c		20000
Rent a/c	1000
Washers & Dryers	25000
12% Bills Payable		15000
Insurance Premium	1200
Advertisement a/c	200
Daily News a/c		200
Bills receivable a/c	1200
Laundry Fees		6200
Dividend a/c	700
	41400	41400