Findlay Testing Inc. provides water testing and maintenance services for owners of hot tubs and swimming pools. During September the following transactions occurred:
Sept. 1 Issued common stock for $12,000
2 Purchased chemical supplies for $1,480 cash
5 Paid office rent for October, November, and December; the rent is $600 per month
8 Purchased $895 of advertising for September on account
13 Billed the city of Bellefontaine $4,200 for testing the water in the city’s outdoor pools during September
18 Received $6,850 from Alexander Blanchard upon completion of overhaul of his swimming pool water circulation system. Since the job was completed and collected for on the same day, no bill was sent to Blanchard.
25 Received $495 from the city of Bellefontaine for water testing that was previously billed 30 Recorded and paid September salaries of $4,320
Required:
1. Prepare a journal entry for each transaction.
2. Post the journal entries to Findlay Testing’s ledger accounts.