My assignment is to Journalize the transactions for the month.

Accounts that must be used: Cash, Accounts Receivable, Prepaid Insurance, Notes Receviable, Shop Supplies Inventory, Office Equipment, Shop Equipment, Truck- Wrecker, Accounts Payable, Notes Payable, Common Stock, Retained Earnings, Repair Revenue, Insurance Expense, Advertising Expense, Telephone Expense, Repair & Maintenance Expense-Building, Rent Expense, Wrecker Expense, and Utility Expense.

The following events occured during August 2015, the first month of operations:

a. Joe contributed $24,000 from his savings to the business and took 1,000 shares of no par value common stock.

b. The business paid $6,000 for a six month insurance policy. Record as Prepaid Insurance.

c. Paid $750 cash for the first month's rent

d. Purchased shop equipment for $8,000 cash

e. Purchased shop supplies costing $3,000 on account

f. Purchased a used wrecker for $11,500 by paying $3,500 down and financing the balance on a three-year note.

g. Received $1,750 from customers for repair work done.

h. Paid $300 cash for radio advertising for the first month.

i. Paid $200 cash for gas, oil, and service costs on the wrecker.

j. Paid $3,000 on accounts payable

k. Repaired a truck for Ace Trucking for $1,200 on account.

l. Paid $75 for the installation of the telephone.

m. Paid $180 for repairs on the wrecker

n. Collected $1,000 cash and accepted a 60-day notes receivable of $1,450 from Speedy Trucking for repair services rendered.

o. Paid $150 for cleaning and minor maintenance on the building.

p. Received $1,500 cash from customers for repair services rendered

q. Purchased shop supplies for $2,500 cash

r. Purchased a computer for the office for $1,250 cash.

s. Received payment of $1,200 from Ace Trucking.

t. Paid the monthly utility bill, $900.

u. Paid $350 for gas and oil for the wrecker.