Bob Sample and other student investors opened Campus Carpet Cleaning, Inc. on September 1, 2012. During the first month of operations, the following transactions occurred.
|
Sept. 1 |
Stockholders invested $20,000 cash in the business. |
|
2 |
Paid $1,000 cash for store rent for the month of September. |
|
3 |
Purchased industrial carpet cleaning equipment for $25,000, paying $10,000 in cash and signing a $15,000 6 month, 12% note payable. |
|
4 |
Paid $1,200 for 1 year accident insurance policy. |
|
10 |
Received bill from the Daily News for advertising the opening of the cleaning service, $200. |
|
15 |
Performed services on account for $6,200. |
|
20 |
Paid a $700 cash dividend to stockholders. |
|
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 account: 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, 2012.