Bob Sample and other student investors opened Campus Carpet Cleaning, Inc. on September 1, 2010. During the first month of operations the following transactions occurred.

The chart of accounts for the company is the same as for Sierra Corporation except for the following additional accounts: Cleaning Equipment and Advertising Expense.
Instructions:

(a) Journalize the September transactions.

(b) Open ledger accounts and post the September transactions.

(c) Prepare a trial balance at September 30, 2010.

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Sept. 1 2 3 40 10 Stockholders invested $20,000 cash in the business. Paid $1,000 cash for store rent for the month of September. Purchased industrial carpet-cleaning equipment for $25,000, paying $10,000 in cash and signing a $15,000 6-month, 12% note payable. Paid $1,200 for 1-year accident insurance policy. Received bill from the Daily News for advertising the opening of the cleaning service, $200. Performed services on account for $6,200. 15 20 Paid a $700 cash dividend to stockholders. 30 Received $5,000 from customers billed on September 15.