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Hi again, could you help me with this problem too please? Economy Laundry Company had the following transactions in August 2010: Aug. 1 Issued capital
Hi again, could you help me with this problem too please?
Economy Laundry Company had the following transactions in August 2010: Aug. 1 Issued capital stock for cash, USD 150,000. 3 Borrowed USD 40,000 from the bank on a note. 4 Purchased cleaning equipment for USD 25,000 cash. 6 Performed services for customers who promised to pay later, USD 16,000. 7 Paid this month's rent on a building, USD 2,800. 10 Collections were made for the services performed on August 6, USD 3,200. 14 Supplies were purchased on account for use this month, USD 3,000. 17 A bill for USD 400 was received for utilities for this month. 25 Laundry services were performed for customers who paid immediately, USD 22,000. 31 Paid employee salaries, USD 6,000. 31 Paid cash dividend, USD 2,000. a. Prepare journal entries for these transactions. b. Post the journal entries to T-accounts. Enter the account number in the Posting Reference column of the journal as you post each amount. Use the following account numbers: Acct. No. Account Title 100 Cash 103 Accounts receivable 170 Equipment 200 Accounts payable 201 Notes payable 300 Capital stock 320 Dividends 400 Service revenue 507 Salaries expense 511 Utilities expense 515 Rent expense 518 Supplies expense c. Prepare a trial balance as of 2010 August 31. GENERAL JOURNAL Date Account Name DEBIT CREDIT CASH ACCOUNT NAME DEBIT CREDITStep by Step Solution
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