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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 $430 to stockholders.
1. Record each transaction. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
2. & 3. Post each transaction to the appropriate T-accounts and calculate the balance of each account.
4. Prepare a trial balance for June.
Expert Answer
1).
| Date | Particular | Debit ($) | Credit ($) |
| June 1 | Cash A/c Dr. | 53000 | |
| To Notes Payable | 53000 | ||
| (Obtain lian from bank) | |||
| June 2 | Cash A/c Dr. | 23000 | |
| To Common Stock | 23000 | ||
| (Issue Common Stock) | |||
| June 7 | Equipment A/c Dr. | 58000 | |
| To Cash | 58000 | ||
| (Purchase Equipment) | |||
| June 10 | Supplies A/c Dr. | 6300 | |
| To Accounts Payable | 6300 | ||
| (Purchase cleaning supplies on account) | |||
| June 12 | Cash A/c Dr. | 3300 | |
| To Service Revenue | 3300 | ||
| (Provide car washes for cash) | |||
| June 16 | Salaries Expense A/c Dr. | 730 | |
| To Cash | 730 | ||
| (Pay Cash for Employee salary) | |||
| June 19 | Advertising Expense A/c Dr. | 330 | |
| To Cash | 330 | ||
| (Pay for current advertising) | |||
| June 23 | Accounts Receivable A/c Dr. | 4300 | |
| To Service Revenue | 4300 | ||
| (Provide car washes on account) | |||
| June 29 | Salaries Expense A/c Dr. | 780 | |
| To Cash | 780 | ||
| (Pay Employee Salary) | |||
| June 30 | Utilities Expense A/c Dr. | 1230 | |
| To Cash | 1230 | ||
| (Pay current utility bill) | |||
| June 30 | Dividends A/c Dr. | 430 | |
| To Cash | 430 | ||
| (Pay dividends to Stockholders) |
2) & 3)
4)
Trial Balance
| Particulars | Debit ($) | Credit ($) |
| Cash | 17800 | |
| Accounts Receivable | 4300 | |
| Supplies | 6300 | |
| Equipment | 58000 | |
| Accounts Payable | 6300 | |
| Notes Payable | 53000 | |
| Common Stock | 23000 | |
| Dividends | 430 | |
| Service Revenue | 7600 | |
| Salaries Exp. | 1510 | |
| Adverting Exp. | 330 | |
| Utilities Exp. | 1230 | |
| Total | 89900 | 89900 |
