Question

Below are the transactions for Racer, Inc. for April, the first month of operations.
April 1 Obtain a loan of $50,000 from the bank.
April 2 Issue common stock in exchange for cash of $20,000.
April 7 Purchase equipment for $40,000 cash.
April 10 Purchase cleaning supplies of $4,000 on account.
April 12 Provide services of $5,000 for cash.
April 16 Pay employees $1,200 for work performed.
April 19 Pay for advertising in a local newspaper, costing $500.
April 23 Provide services of $7,000 on account.
April 29 Pay employees $1,500 for work performed.
April 30 A utility bill of $1,200 for the current month is paid.
April 30 Pay dividends of $700 to stockholders.

Required:
1. Record each transaction.
2. Post each transaction to the appropriate T-accounts.
3. Calculate the balance of each account.
4. Prepare a trial balance for June.
Racer uses the following accounts: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Notes Payable, Common Stock, Dividends, Service Revenue, Salaries Expense, Advertising Expense, and Utilities Expense.



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  • CreatedJuly 15, 2014
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