Below are the transactions for Salukis Car Cleaning for June, the first month of operations.
June 1 Obtain a loan of $53,000 from the bank by signing a note.
June 2 Issue common stock in exchange for cash of $23,000.
June 7 Purchase car wash equipment for $58,000 cash.
June 10 Purchase cleaning supplies of $6,300 on account.
June 12 Wash 330 cars for $10 each. All customers pay cash.
June 16 Pay employees $730 for work performed.
June 19 Pay for advertising in a local newspaper, costing $330.
June 23 Wash 430 cars for $10 each on account.
June 29 Pay employees $780 for work performed.
June 30 A utility bill of $1,230 for the current month is paid.
June 30 Pay dividends of $430 to stockholders.
1. Record each transaction. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
2. & 3. Post each transaction to the appropriate T-accounts and calculate the balance of each account.
4. Prepare a trial balance for June.
|Date||Particular||Debit ($)||Credit ($)|
|June 1||Cash A/c Dr.||53000|
|To Notes Payable||53000|
|(Obtain lian from bank)|
|June 2||Cash A/c Dr.||23000|
|To Common Stock||23000|
|(Issue Common Stock)|
|June 7||Equipment A/c Dr.||58000|
|June 10||Supplies A/c Dr.||6300|
|To Accounts Payable||6300|
|(Purchase cleaning supplies on account)|
|June 12||Cash A/c Dr.||3300|
|To Service Revenue||3300|
|(Provide car washes for cash)|
|June 16||Salaries Expense A/c Dr.||730|
|(Pay Cash for Employee salary)|
|June 19||Advertising Expense A/c Dr.||330|
|(Pay for current advertising)|
|June 23||Accounts Receivable A/c Dr.||4300|
|To Service Revenue||4300|
|(Provide car washes on account)|
|June 29||Salaries Expense A/c Dr.||780|
|(Pay Employee Salary)|
|June 30||Utilities Expense A/c Dr.||1230|
|(Pay current utility bill)|
|June 30||Dividends A/c Dr.||430|
|(Pay dividends to Stockholders)|
2) & 3)
|Particulars||Debit ($)||Credit ($)|