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During its first month of operation, the Rawls Repair Corporation, which specializes in bicycle repairs, completed the following transactions:
Oct. 1
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.
Paid the premium on a one-year insurance policy, $1,200.
Paid the current month's rent, $1,040.
Oct. 3
Purchased repair equipment from Conklin Company, $4,400. Paid $600 down and the balance was placed on account. Payments will be $200.00 per month for nineteen months. The first payment is due 11/1.
Oct. 8
Purchased repair supplies from McKenna Company on credit, $390.
Oct. 12
Paid utility bill for October, $154.
Oct. 16
Cash bicycle repair revenue for the first half of October, $1,362.
Oct. 19
Made payment to McKenna Company, $200.
Oct. 31
Cash bicycle repair revenue for the last half of October, $1,310.
Declared and paid cash dividend of $800.
Prepare a trial balance for October.
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