[alphanumeric72]

REQUIREMENT #1:
During its first month of operation, the Rawls Repair Corporation, which specializes in bicycle repairs,
completed the following transactions:

Oct. 1 Began business by making a deposit in a company bank account of $12,000, in exchange
for 1,200 shares of $10 par value common stock.

Oct. 1 Paid the premium on a one-year insurance policy, $1,200.

Oct. 1 Paid the current month's rent, $1,040.

Oct. 3 Purchased repair equipment from Conklin Company, $4,400. Paid $600 down and the balance was
placed on account. Payments will be $200.00 per month for nineteen months. The first payment is due 11/1.
Note: Use Accounts Payable for the Balance Due.

Oct. 8 Purchased repair supplies from McKenna Company on credit, $390.

Oct. 12 Paid utility bill for October, $154.

Oct. 16 Cash bicycle repair revenue for the first half of October, $1,362.

Oct. 19 Made payment to McKenna Company, $200.

Oct. 31 Cash bicycle repair revenue for the last half of October, $1,310.

Oct. 31 Declared and paid cash dividend of $800.


Prepare journal entries to record the October transactions in the General Journal below.

General Journal
Date Description(Account Name) Debit Credit


























1Note: Remember that Debits must equal Credits - All of your Journal Entries should balance.

[annasofi]

Oct. 1 Began business by making a deposit in a company bank account of $12,000, in exchange
for 1,200 shares of $10 par value common stock.
cash 12000
common stock 12000

Oct. 1 Paid the premium on a one-year insurance policy, $1,200.
prepaid insurance 1200
cash 1200
Oct. 1 Paid the current month's rent, $1,040.
prepaid rent 1040
cash 1040
Oct. 3 Purchased repair equipment from Conklin Company, $4,400. Paid $600 down and the balance was
placed on account. Payments will be $200.00 per month for nineteen months. The first payment is due 11/1.
Note: Use Accounts Payable for the Balance Due.
equipment 4400
cash 600
account payable 3800

Oct. 8 Purchased repair supplies from McKenna Company on credit, $390.
office supplies 390
account payable 390
Oct. 12 Paid utility bill for October, $154.
utilities exp. 154
cash 154

Oct. 16 Cash bicycle repair revenue for the first half of October, $1,362.
cash 1362
service revenue 1362

Oct. 19 Made payment to McKenna Company, $200.
cash 200
account payable 200

Oct. 31 Cash bicycle repair revenue for the last half of October, $1,310.
cash 1310
service revenue 1310


Oct. 31 Declared and paid cash dividend of $800.
dividend 800
cash 800

[morgaine300]

Again, BOTH of you need to please read the homework posting guidelines:
https://www.askmehelpdesk.com/financ...-b-u-font.html

If I could delete those answers I would. It's unethical to do people's homework for them. This isn't Yahoo Answers, sorry.

[annasofi]

Sorry

[morgaine300]

Oh well, at least you apologized. Some people just think I'm bonkers. :-)

[ArcSine]

On the contrary, Ms. M; I looked it up...

bonkers (bong' kerz), adj. Slang. One who deems themselves to be exempt from a forum's homework-help rules.

[morgaine300]

Oh sigh, what are we going to do with you?