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A group of student investors in Hong Kong opened Campus Laundromat Ltd. on September 1, 2017. During the first month of operations, the following transactions occurred. Sept. 1 Shareholders invested HK$200,000 cash in the business in exchange for ordinary shares. 2 Paid HK$10,000 cash for store rent for the month of September. 23 PRACTICE PROBLEM Purchased washers and dryers for HK$250,000, paying HK$100,000 in cash and signing a HK$150,000, 6-month, 12% note payable. 4 Paid HK$12,000 for a one-year accident insurance policy. 10 Received a bill from the Daily News for advertising the opening of the laundromat HK$2,000. Declared and paid a cash dividend to shareholders HK$7,000. Determined that cash receipts for laundry fees for the month were HK$62,000. The chart of accounts for the company is the same as for Yazici Advertising A.. (Illustra- tion 2-19 on page 64) except for the following: No. 610 Advertising Expense. 20 30

A group of student investors in Hong Kong opened Campus Laundromat Ltd. on September 1, 2017. During the first month of operations, the following transactions occurred. Sept. 1 Shareholders invested HK $200,000 cash in the business in exchange for ordinary shares. 2 Paid HK $10,000 cash for store rent for the month of September. 3 Purchased washers and dryers for HK $250,000, paying HK $100,000 in cash and signing a HK $150,000,6-month, 12% note payable. 4 Paid HK $12,000 for a one-year accident insurance policy. 10 Received a bill from the Daily News for advertising the opening of the laundromat HK$2,000. 20 Declared and paid a cash dividend to shareholders HK$7,000. 30 Determined that cash receipts for laundry fees for the month were HK $62,000. The chart of accounts for the company is the same as for Yazici Advertising A.S.. (Illustration 2-19 on page 64) except for the following: No. 610 Advertising Expense. Solution Advertisina Vexen... BE2-1 For each of the following accounts, indicate the effects of (a) a debit and (b) credit on the accounts and (c) the normal balance of the account. 1. Accounts Payable. 2. Advertising Expense. 3. Service Revenue. 4. Accounts Receivable. 5. Share Capital-Ordinary. 6. Dividends. BE2-5 J.A. Motzek SA has the following transactions during August of the current yea Indicate (a) the effect on the accounting equation and (b) the debit-credit analysis illus trated on pages 65-70. Aug. 1 Opens an office as a financial advisor, investing R$5,000 in cash in exchange for ordinary shares. 4 Pays insurance in advance for 6 months, R$1,800 cash. 16 Receives R\$1,100 from clients for services performed. 27 Pays secretary R$1,000 salary. BE2-9 From the ledger balances given below, prepare a trial balance for the Starr SE at June 30, 2017. List the accounts in the order shown on page 73. All account balances are normal. Accounts Payable 8,600, Cash 6,800, Share Capital-Ordinary 20,000, Dividends 800, Equipment 17,000, Service Revenue 6,000, Accounts Receivable 3,000, Salaries and Wages Expense 6,000, and Rent Expense 1,000

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