Nge Aung opened the Campus Laundromat on September 1, 2018. During the first month of operations, the following transactions occurred: September: 1. Nge Aung contributed $20,000 cash and a clothes washer with a current value of $10,000 to the business 1. Paid $1,200 for a one-year insurance policy. 2. Paid $3,000 cash for store rent for the month of September. 3. Purchased washers and dryers for $25,000, paying $10,000 in cash and signing a $15,000, six-month 5% note payable. 10. Received a bill from The Daily News for advertising the opening of the laundromat in the amount of $200 15. Paid employees $1,800 for working for the business from September 1- 15, 2018. 20. Withdrew $700 cash for personal use. 30. Paid employees $2,000 for working for the business from September 16 - 30, 2018. 30. Cash receipts for laundry services performed for the month were $6,200. 30. Laundry services performed on account totalled $500. This amount is due on October 25. REQUIRED: 1. Prepare General Journal Entries to record the above transactions. 2. Open the following General Ledger Accounts: Cash (101); Accounts Receivable (112); Prepaid Insurance (130); Laundry Equipment (153) Accounts Payable (200); Notes Payable (210); Nge Aung, Capital (301); Nge Aung, Withdrawals (302); Service Revenue (400); Advertising Expense (510); RentExpense (520); and Wages Expense (530). 3. Post the entries to the accounts and enter the balance after each posting.
Nge Aung opened the Campus Laundromat on September 1, 2018. During the first month of operations, the following transactions occurred: September: 1. Nge Aung contributed $20,000 cash and a clothes washer with a current value of $10,000 to the business 1. Paid $1,200 for a one-year insurance policy. 2. Paid $3,000 cash for store rent for the month of September. 3. Purchased washers and dryers for $25,000, paying $10,000 in cash and signing a $15,000, six-month 5% note payable. 10. Received a bill from The Daily News for advertising the opening of the laundromat in the amount of $200 15. Paid employees $1,800 for working for the business from September 1- 15, 2018. 20. Withdrew $700 cash for personal use. 30. Paid employees $2,000 for working for the business from September 16 - 30, 2018. 30. Cash receipts for laundry services performed for the month were $6,200. 30. Laundry services performed on account totalled $500. This amount is due on October 25. REQUIRED: 1. Prepare General Journal Entries to record the above transactions. 2. Open the following General Ledger Accounts: Cash (101); Accounts Receivable (112); Prepaid Insurance (130); Laundry Equipment (153) Accounts Payable (200); Notes Payable (210); Nge Aung, Capital (301); Nge Aung, Withdrawals (302); Service Revenue (400); Advertising Expense (510); RentExpense (520); and Wages Expense (530). 3. Post the entries to the accounts and enter the balance after each posting.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Nge Aung opened the Campus Laundromat on September 1, 2018. During the first month of operations, the
following transactions occurred:
September:
1. Nge Aung contributed $20,000 cash and a clothes washer with a current value of $10,000 to the business
1. Paid $1,200 for a one-year insurance policy.
2. Paid $3,000 cash for store rent for the month of September.
3. Purchased washers and dryers for $25,000, paying $10,000 in cash and signing a $15,000, six-month
5% note payable.
10. Received a bill from The Daily News for advertising the opening of the laundromat in the amount of $200
15. Paid employees $1,800 for working for the business from September 1- 15, 2018.
20. Withdrew $700 cash for personal use.
30. Paid employees $2,000 for working for the business from September 16 - 30, 2018.
30. Cash receipts for laundry services performed for the month were $6,200.
30. Laundry services performed on account totalled $500. This amount is due on October 25.
REQUIRED:
1. Prepare General Journal Entries to record the above transactions.
2. Open the following General Ledger Accounts:
Cash (101); Accounts Receivable (112); Prepaid Insurance (130); Laundry Equipment (153)
Accounts Payable (200); Notes Payable (210); Nge Aung, Capital (301); Nge Aung, Withdrawals
(302); Service Revenue (400); Advertising Expense (510); RentExpense (520); and Wages Expense
(530).
3. Post the entries to the accounts and enter the balance after each posting.
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