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.