During its first month of operation, the Rawls Repair Corporation, which specializes in bicycle repairs, completed the

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During its first month of operation, the Rawls Repair Corporation, which specializes in bicycle repairs, completed the following transactions:

Oct. 1Began 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.

Oct. 1Paid the premium on a one-year insurance policy, $1,200.

Oct. 1Paid the current month's rent, $1,040.

Oct. 3Purchased repair equipment from Conklin 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.

Note: Use Accounts Payable for the Balance Due.

Oct. 8Purchased repair supplies from McKenna Company on credit, $390.

Oct. 12Paid utility bill for October, $154.

Oct. 16Cash bicycle repair revenue for the first half of October, $1,362.

Oct. 19Made payment to McKenna Company, $200.

Oct. 31Cash bicycle repair revenue for the last half of October, $1,310.

Oct. 31Declared and paid cash dividend of $800.

Requirements Sheet in Workbook Part A - Due in Week 3 - Requirement 1, 2 and 3 Requirement 1 - Prepare the Journal Entri


Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Related Book For  answer-question

Managerial Accounting

ISBN: 978-0078025518

2nd edition

Authors: Stacey Whitecotton, Robert Libby, Fred Phillips

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