Information for question: October Transactions Date Transaction Description Oct.
ID: 2461826 • 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 #10: Prepare a post-closing trial balance as of October 31 in the space below. "Rawls Repair Corporation Post-Closing Trial Balance October 31" Account Balance Title Debit Credit
Explanation / Answer
Solution-
Rawls Repair Corporation Journal Entries S.No. Date Description Post reference Debit Credit 1 10/1 111 Cash Debit A/C 12,000 311 Common Stock Credit 12,000 (For Recording common stock issued for 1,200 shares of $10 par value common stock) 2 10/1 117 Prepaid Insurance Debit A/c 1,100 513 Insurance Debit A/c 100 111 Cash Debit A/C 1,200 (For Recording the premium on a 1-year insurance policy) 3 10/1 511 Store Rent Expense Debit 1,040 111 Cash Debit A/C 1,040 (For Rent paid for curent month) 4 10/3 144 Repair Equipment Debit 4,400 111 Cash Debit A/C 600 212 Accounts Payable 3,800 (For Equipment purchased) 5 10/8 119 Repair Supplies Debit A/c 390 212 Accounts Payable A/c 390 (For repair supplies from McKenna Company on credit) 6 10/12 512 Utility Expense Debit A/c 154 111 Cash Debit A/C 154 (For utlitity bill payment) 7 10/16 111 Cash Debit A/C 1,362 411 Bicycle Repair Revenue A/c 1,362 (For bicycle repair revenue for the first half of October) 8 10/19 212 Accounts Payable A/c 200 111 Cash Debit A/C 200 (For payment to McKenna Company) 9 12/31 111 Cash Debit A/C 1,350 411 Bicycle Repair Revenue A/c 1,350 (For bicycle repair revenue for the last half of October) 10 10/30 313 Dividends Debit 800 111 Cash Debit A/C 800 (For Declared and paid cash dividend )