- October 1, C.R. Byrd invests RM10,000 cash in an advertising venture to be known as the Pioneer Advertising Agency.
- October 1, office equipment costing RM5,000 is purchased by signing a RM5,000 note payable with Hong Leong Bank Berhad.
- October 2, a RM1,200 cash advance is received from R. Knox, a client, for advertising services that are expected to be completed by December 31.
- October 3, office rent for October is paid in cash, RM900.
- October 4, RM600 is paid for a one year insurance policy that will expire next year on September 30.
- October 5, an estimated 3 month supply of advertising materials is purchased on account from Aero Supply for RM2,500.
- October 9, hire four employees to begin work on October 15. Each employee is to receive a weekly salary of RM500 for a 5 day work week, payable every 2 weeks first payment made on October 26
- October 20, C. R. Byrd withdraws RM500 cash for personal use.
- October 31, received RM10,000 in cash from Copa Company for advertising services rendered in October.
Instructions :
Journalize the transactions, post to the ledger accounts and prepare a trial balance on October 31,2007.