1, Accounting transaction posting Example: October 1: Stockholders invest $100,000 cash in an advertising venture to be known as Pioneer Advertising Inc. Debit: Cash 100,000 Credit: Common Stock 100,000 1, October 2: Pioneer Advertising receives a $12,000 cash advance from R. Knox, a client, for advertising services that are expected to be completed by December 31. 2, October 4: Pioneer Advertising pays $6,000 for a one-year insurance policy that will expire next year on September 30. 3, October 20: Pioneer Advertising's board of directors declares and pays a $5,000 cash dividend to stockholders. 4, October 31: Pioneer Advertising receives $28,000 in cash and bills Copa Company $72,000 for advertising services of $100,000 performed in October. 5, On Oct. 4th, Pioneer Advertising paid $6,000 for a one-year fire insurance policy, coverage beginning October 1. Prepare the entry to record the purchase of the insurance. 6, An analysis of the policy reveals that $500 ($6,000 = 12) of insurance expires each month. Prepare the entry to record the insurance cost expired in October. 7, Advertising estimates depreciation on its office equipment to be $400 per month. Prepare the entry to record depreciation for the month of October. 8, Pioneer signed a three-month, 12%, note payable in the amount of $50,000 on October 1. Prepare the adjusting entry on Oct. 31 to record the accrual of interest. 9, Pioneer Advertising reasonably estimates a bad debt expense for the month of $1,600. Prepare the entry to record the bad debts for the month of October. 10, In October Pioneer Advertising performed services worth $2,000 that were not billed clients before Oct. 31. Prepare the entry to revenues for services performed