Bob Sample opened the Campus Laundromat on September 1, 2017.

During the first month of operations, the following occurred.

Sept 1 Invested 20,000 cash in the business.

2 The company paid $1,000 cash for store rent for September.
3 Purchased washers and dryers for $25,000, paying $10,000 in cash and signing a $15,000 6-month, 12% note payable
4 Paid $1,200 for a one-year accident insurance policy
10 Received a bill from the Daily News for online advertising of the opening of the laundromat $200.
20 Bob withdrew $700 for personal use.
30 The company determined that cash receipts for laundry services for the month were $6,200.

The company's chart of accounts are as follows:

Cash-101, Supplies-126, Prepaid Insurance-130, Equipment-157, Notes Payable-200, Accounts Payable-201,
Unearned Service Revenue-209, Owner's Capital-301,Owner's Draw-306, Service Revenue-400, Rent Expense-729,
and Salaries and Wages Expense-726.

Instructions:
(a) Journalize the September transactions. Use J1 for the journal page number.
(b) Open ledger accounts and post the September transactions.
( c) Prepare a trail balance at September 30, 2017.

(a) J1 (b)
Date Account Titles and Explanation Ref. Debit Credit Cash
Sept 1 Select Account Date Explanation Ref
Select Account Sept 1 J1
2 J1
3 J1
2 Select Account 4 J1
Select Account 20 J1
30 J1

3 Select Account Prepaid Insurance

Select Account Date Explanation Ref
Select Account Sept 4 J1

Equipment
 Date Explanation Ref
4 Select Account Sept 3 J1
Select Account
Notes Payable
Date Explanation Ref
10 Select Account Sept 3 J1
Select Account
Accounts Payable
Date Explanation Ref
20 Select Account Sept 10 J1
Select Account
Owner's Capital
Date Explanation Ref
30 Select Account Sept 1 J1
Select Account
Owner's Draw
Date Explanation Ref
(c ) Campus Laundromat Sept 20 J1
Trial Balance
September 30, 2017 Service Revenue
Debit Credit Date Explanation Ref
Cash Sept 30 J1
Prepaid Insurance
Equipment Advertising Expense
Notes Payable Date Explanation Ref
Accounts Payable Sept 10 J1
Owner's Capital
Owner's Draw Rent Expense
Service Revenue Date Explanation Ref
Advertising Expense Sept 2 J1
Rent Expense
- -
ash No. 101
Debit Credit Balance
-
-
-
-
-
-

Insurance No. 130

Debit Credit Balance
-

pment No. 157

 Debit Credit Balance
-

Payable No. 200

Debit Credit Balance
-

s Payable No. 201

Debit Credit Balance
-

s Capital No. 301

Debit Credit Balance
-

r's Draw No. 306

Debit Credit Balance
-

Revenue No. 400

Debit Credit Balance
-

ng Expense No. 610

Debit Credit Balance
-

Expense No. 729

Debit Credit Balance
-
Bob Sample opened the Campus Laundromat on September 1, 2017. During the first month of operations, the following occurred.

Sept 1 Invested 20,000 cash in the business.

2 The company paid $1,000 cash for store rent for September.
3 Purchased washers and dryers for $25,000, paying $10,000 in cash and signing a $15,000 6-month, 12% note payable
4 Paid $1,200 for a one-year accident insurance policy
10 Received a bill from the Daily News for online advertising of the opening of the laundromat $200.
20 Bob withdrew $700 for personal use.
30 The company determined that cash receipts for laundry services for the month were $6,200.

The company's chart of accounts are as follows:

Cash-101, Supplies-126, Prepaid Insurance-130, Equipment-157, Notes Payable-200, Accounts Payable-201,
Unearned Service Revenue-209, Owner's Capital-301,Owner's Draw-306, Service Revenue-400, Rent Expense-729,
and Salaries and Wages Expense-726.

Instructions:
(a) Journalize the September transactions. Use J1 for the journal page number.
(b) Open ledger accounts and post the September transactions.
( c) Prepare a trail balance at September 30, 2017.

(a) J1 (b)
Date Account Titles and Explanation Ref. Debit Credit Cash
Sept 1 Cash 101 20,000 Date Explanation Ref
Owner's Capital 301 20,000 Sept 1 J1
Owner's Investment of cash in business 2 J1
3 J1
2 Rent Expense 729 1,000 4 J1
Cash 101 1,000 20 J1
Paid September Rent 30 J1

3 Equipment 157 25,000 Prepaid Insurance

Cash 101 10,000 Date Explanation Ref
Notes Payable 200 15,000 Sept 4 J1
Purchased laundry equipment for cash
and 6-month, 12% note payable Equipment
 Date Explanation Ref
4 Prepaid Insurance 130 1,200 Sept 3 J1
Cash 101 1,200
Paid for one-year insurance policy Notes Payable
Date Explanation Ref
10 Advertising Expense 610 200 Sept 3 J1
Accounts Payable 201 200
Received bill fronmDaily News for advertising Accounts Payable
Date Explanation Ref
20 Owner's Draw 306 700 Sept 10 J1
Cash 101 700
Withdrew cash for personal use Owner's Capital
Date Explanation Ref
30 Cash 101 6,200 Sept 1 J1
Service Revenue 400 6,200
Received cash for services performed Owner's Draw
Date Explanation Ref
(c ) Campus Laundromat Sept 20 J1
Trial Balance
September 30, 2017 Service Revenue
Debit Credit Date Explanation Ref
Cash 13,300 Sept 30 J1
Prepaid Insurance 1,200
Equipment 25,000 Advertising Expense
Notes Payable 15,000 Date Explanation Ref
Accounts Payable 200 Sept 10 J1
Owner's Capital 20,000
Owner's Draw 700 Rent Expense
Service Revenue 6,200 Date Explanation Ref
Advertising Expense 200 Sept 2 J1
Rent Expense 1,000
41,400 41,400
ash No. 101
Debit Credit Balance
20,000 20,000
1,000 19,000
10,000 9,000
1,200 7,800
700 7,100
6,200 13,300

Insurance No. 130

Debit Credit Balance
1,200 1,200

pment No. 157

 Debit Credit Balance
25,000 25,000

Payable No. 200

Debit Credit Balance
15,000 15,000

s Payable No. 201

Debit Credit Balance
200 200

s Capital No. 301

Debit Credit Balance
20,000 20,000

r's Draw No. 306

Debit Credit Balance
700 700

Revenue No. 400

Debit Credit Balance
6,200 6,200

ng Expense No. 610

Debit Credit Balance
200 200

Expense No. 729

Debit Credit Balance
1,000 1,000