Scenario Youve just secured a new client in your accounting practice, the Rawls Repair Corporation, (RRC) a brand new small business specializing in bicycle repair The owner, Rob Rawls, is a terrific cyclist and bike repair specialist, but definitely not an accountant Your job is to help Rob put his affairs in order Luckily Rob has only been in operation for a month and things have not gotten too out of hand yet Rob has to submit his financial statements to his investors and doesnt know where to begin Its your job to go through the complete Accounting cycle to prepare the financial statements for the RRC Requirements Task description Using this 1 Prepare the journal entries in the general journal Journal entries 2 Post journal entries to the general ledger General ledger 3 Prepare a trial balance Trial balance Complete requirements 1 3 on the journal entries General ledger and trial balance worksheets Put work into worksheets During its first month of operation, the Rawls Repair Corporation, which specializes in bicycle repairs, completed the following transactions 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 one 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 nineteen 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, $1,310 Oct 31 Declared and paid cash dividend of $800 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 1 Prepare journal entries to record the October transactions in the General Journal below Remember that Debits must equal Credits All of your Journal Entries should balance General Journal Date Description (Account Name) Debit Credit 1 Oct 1 Oct 1 Oct 3 Oct 8 Oct 12 Oct 16 Oct 19 Oct 31 Oct 31 Oct

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Scenario: Youve just secured a new client in your accounting practice, the Rawls Repair Corporation, (RRC) a brand new small business specializing in bicycle repair.

Scenario:

Youve just secured a new client in your accounting practice, the Rawls Repair Corporation, (RRC) a brand new small business specializing in bicycle repair. The owner, Rob Rawls, is a terrific cyclist and bike repair specialist, but definitely not an accountant. Your job is to help Rob put his affairs in order. Luckily Rob has only been in operation for a month and things have not gotten too out of hand yet! Rob has to submit his financial statements to his investors and doesnt know where to begin. Its your job to go through the complete Accounting cycle to prepare the financial statements for the RRC.

Requirements	Task description	Using this
1	Prepare the journal entries in the general journal	Journal entries
2	Post journal entries to the general ledger	General ledger
3	Prepare a trial balance	Trial balance

Complete requirements 1-3 on the journal entries. General ledger and trial balance worksheets
Put work into worksheets

During its first month of operation, the Rawls Repair Corporation, which specializes in bicycle repairs, completed the following transactions:

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 one-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 nineteen 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, $1,310.
Oct. 31	Declared and paid cash dividend of $800.

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 #1: Prepare journal entries to record the October transactions in the General Journal below. Remember that Debits must equal Credits - All of your Journal Entries should balance.
General Journal
Date	Description (Account Name)	Debit	Credit
1-Oct

1-Oct

1-Oct

3-Oct


8-Oct

12-Oct

16-Oct

19-Oct

31-Oct

31-Oct