Reference no: EM132498258

Question - Sam's Car Rental began business operations on 1 January 20xx. The capital of the business was $600,000 cash, which had all been contributed by Samuel Dabrowski. The transactions undertaken by the business during January, including the initial investment by the owner, were as follows:

Jan 1. Sam contributed $600,000 cash to the business

Jan 2. The company bought land for $125,000 and a building on the land for $88,000. A cash payment of $110,000 was made and a mortgage loan with the Amazon Bank was arranged for the balance owing

Jan 4. Purchased 15 new vehicles at $25,000 each from Auto Company. The company paid $250,000 cash, and the remainder was due to paid in 30 days.

Jan 13. The company acquired some equipment for the main office at a total cost of $5,000, paid in cash.

Jan 28. Car rental fees of $18,000 were received in cash

Jan 29. Paid the remaining cash owing to Auto Company

Jan 30. The company paid wages of $2,500 to employees

Jan 31. Car rental fees of $12,000 were received in cash and an additional $5,000 owed by clients.

Requirements -

A. Prepare general journal entries for the company for the month of January 20xx.

B. Post these entries to appropriate T accounts and determine their balances.