Information for question: October Transactions Date Transaction Description Oct.
ID: 2461823 • Letter: I
Question
Information for question: October Transactions Date Transaction Description 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 1-year insurance policy, $1,200. Oct. 1 Paid the current month's store rent expense, $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 19 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, $1,350. Oct. 31 Declared and paid cash dividend of $800. Chart of accounts: Use the following account descriptions for journal entries. Chart of Accounts Account Type Account Number Account Title Normal Balance Assets 111 Cash Debit 117 Prepaid Insurance Debit 119 Repair Supplies Debit 144 Repair Equipment Debit 145 Accum Dep -Repair Equipment Credit Liabilities 212 Accounts Payable Credit 213 Income Tax Payable Credit Stockholders Equity 311 Common Stock Credit 312 Retained Earnings Credit 313 Dividends Debit Revenue 411 Bicycle Repair Revenue Credit Expenses 511 Store Rent Expense Debit 512 Utility Expense Debit 513 Insurance Expense Debit 514 Repair Supplies Expense Debit 515 Dep Expense - Repair Equipment Debit 516 Income Tax Expense Debit
"Requirement #8: Prepare the closing entries at October 31 in the General Journal below. Hint:Use the balances for each account which appear on the Adjusted Trial Balance for your closing entries. " General Journal Date Description (Account Name) Debit Credit
Explanation / Answer
Answer: Journal:
Oct. 1 Cash A/C Dr. $ 12,000
To Common Stock A/C $ 12,000
(Being 1,200 shares issued at $10 par value )
Oct. 1 Prepaid Insurance A/C Dr. $ 1,200
To Cash A/C $1,200
(Being insurance paid for 1 year )
Oct. 1 Store Rent Expense A/C Dr. $1,040
To Cash A/C $1,040
(Being current month's store rent expense paid)
Oct. 3 Repair Equipment A/C Dr. $ 4,400
To CashA/C $ 600
To Accounts Payable A/C $ 3,800
(Being repair equipment purchased)
Oct. 8 Repair Supplies A/C Dr. $ 390
To Accounts Payable $390
(Being repair supplies purchased)
Oct. 12 Utility Expense A/C Dr. $154
To Cash $154
(Being utility expense paid )
Oct. 16 Cash A/C Dr. $ 1,362
To Bicycle Repair Revenue $1,362
(Being Cash revenue recorded for the Frst half of October)
Oct. 19 Accounts Payable A/C Dr. $ 200
To Cash A/C $200
(Being payment made to McKenna Company )
Oct. 31 Cash A/C Dr. $1,350
To Bicycle Repair Revenue A/C $ 1,350
(Being Cash revenue recorded for the second half of October )
Oct. 31 Dividends A/C Dr. $ 800
To Cash $ 800