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Rawls Repaid Corporation - Complete Accounting Cycle

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REQUIREMENT #1:
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.

Oct. 1 Paid the premium on a one-year insurance policy, $1,200.

Oct. 1 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.
Note: Use Accounts Payable for the Balance Due.

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.

Oct. 31 Declared and paid cash dividend of $800.

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Solution Summary

The solution details accounting cycle for Rawls Repaid Corporation for the month of October.

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