Reference no: EM131519644

Question: Below are the transactions for Salukis Car Cleaning for June, the first month of operations.

June 1 Obtain a loan of $60,000 from the bank by signing a note.

June 2 Issue common stock in exchange for cash of $30,000.

June 7 Purchase car wash equipment for $65,000 cash.

June 10 Purchase cleaning supplies of $7,000 on account.

June 12 Wash 400 cars for $10 each. All customers pay cash.

June 16 Pay employees $800 for work performed.

June 19 Pay for advertising in a local newspaper, costing $400.

June 23 Wash 500 cars for $10 each on account.

June 29 Pay employees $850 for work performed.

June 30 A utility bill of $1,300 for the current month is paid.

June 30 Pay dividends of $500 to stockholders.

Required: 1. Record each transaction.

2. Post each transaction to the appropriate T-accounts.

3. Calculate the balance of each account.

4. Prepare a trial balance for June.

Salukis uses the following accounts: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Notes Payable, Common Stock, Dividends, Service Revenue, Salaries Expense, Advertising Expense, and Utilities Expense.