During its first month of operation, the Truman's Repair Co., which specializes in engine repairs completed the following transactions:
Feb. 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
Feb. 3
Purchased repair equipment from Aster's 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.
Feb. 8
purchased repair supplies from Kelly Company on credit, $390.
Feb. 16
Cash engine repair revenue for the first half of October, $1,362.
Feb. 19
Made payment to Kelly Company, $200.
Feb. 31
Cash engine repair revenue for the last half of October, $1,310
Feb. 31
Declared and paid cash dividend of $800.
Suggestion:
Feb. 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
Dr Cash $12,000
Cr Common stock $12,000
Feb. 3
Purchased repair equipment from Aster's 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.
Dr Repair equipment $4,400
Cr Cash $600
Cr Accounts payable $3,800
Feb. 8
purchased repair supplies from Kelly Company on credit, $390
Dr Repair supplies $390
Cr AP $390
Feb. 16
Cash engine repair revenue for the first half of October, $1,362
Dr Cash $1,362
Cr Repair revenue $1,362
(If the 1st month of operations is Feb, what is Oct doing here?)
Feb. 19
Made payment to Kelly Company, $200
Dr AP $200
Cr Cash $200
Feb. 31 (which calendar has Feb 31?)
Cash engine repair revenue for the last half of October, $1,310
Dr Cash $1,310
Cr Repair revenue $1,310
Feb. 31
Declared and paid cash dividend of $800
Dr Dividend $800
Cr Cash $800

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