Question

Below are the transactions for Salukis Car Cleaning for June, the first month of operations.
June 1 Obtain a loan of $70,000 from the bank by signing a note.
June 2 Issue common stock in exchange for cash of $40,000.
June 7 Purchase car wash equipment for $75,000 cash.
June0 Purchase cleaning supplies of $8,000 on account.
June 12 Wash 500 cars for $10 each. All customers pay cash.
June 16 Pay employees $900 for work performed.
June 19 Pay for advertising in a local newspaper, costing $500.
June 23 Wash 600 cars for $10 each on account.
June 29 Pay employees $950 for work performed.
June 30 A utility bill of $1,400 for the current month is paid.
June 30 Pay dividends of $600 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.
Salukis 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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