bill and dan opened up HEB Inc. on September 1, 2013. During the first month of operations the following transactions occurred.

Date     Transaction

9-1-13 Common Stockholders invested $40,000 cash in this new business.

9-2        Paid $4,000 rent for its store for the month of September and prepaid October – December’s

               rent (e.g., 3 mo.). All rent is due on the 2^nd of the month.

9-3       Borrowed $10,000 from a bank via a 6-month (180 day) promissory note at a 12% annual

              rate. (use a 360 day year for all calculations)

9-4        Purchased $25,000 of cleaning equipment.

9-5       Paid $1,200 for 1-year insurance policy.

9-10    Received a bill from NEWSCORP for advertising the opening of their store, for $400.

9-15     Performed services on account for $6,200.

9-20     Received $2,200 for services originally performed on account.

9-30     Declared a cash dividend of $700 to shareholders of record on 10/1/13. The dividend is

               payable on 12/31/13.

Assignment:

Do:

1. Journalize all of the September transactions in the appropriate columns as indicated below in the GENERAL JOURNAL.

2. Open GENERAL LEDGER accounts (T-ACCOUNTS) and post all of the September transactions.

3. Prepare a TRIAL BALANCE as of September 30, 2013. (This is a pre-closing Trial Balance)

4. Prepare a TRIAL BALANCE as of December 31^st, 2013 (Please do NOT make closing entries)

     Please make all appropriate adjusting entries and assume no adjustments have been made prior to

    December 31^st.

Answer rating: 100% (QA)

Answer Lets start by journalizing the September transactions Date Transaction Debit Credit 9113 Cash ... View the full answer