During its first month of operation, the Rawls Repair Corporation, which specializes in bicycle repairs, completed the following transactions:
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Oct. 1
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Began 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.
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Oct. 1
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Paid the premium on a one-year insurance policy, $1,200.
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Oct. 1
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Paid the current month's rent, $1,040.
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Oct. 3
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Purchased repair equipment from Conklin Company, $4,400. Paid $600 down and the balance were placed on account. Payments will be $200.00 per month for nineteen months. The first payment is due 11/1.
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Oct. 8
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Purchased repair supplies from McKenna Company on credit, $390.
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Oct. 12
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Paid utility bill for October, $154.
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Oct. 16
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Cash bicycle repair revenue for the first half of October, $1,362.
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Oct. 19
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Made payment to McKenna Company, $200.
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Oct. 31
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Cash bicycle repair revenue for the last half of October, $1,310.
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Oct. 31
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Declared and paid cash dividend of $800.
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Prepare the closing entries at October 31 in the General Journal below.
Trial Balance for your closing entries
Hint: use the balances for each account which appear on the Adjusted
Post the closing entries to the General Ledger T-accounts and compute ending balances.