Question

Post journal entries to T-accounts for this problem.

Oliver Rowe owned a bus and was tired of his current job. He decided to open a business, Oliver, Inc., that provides day tours to tourists through Hollywood and Los Angeles.   Below is a Chart of Accounts for Oliver, Inc.:

Chart of Accounts

Cash

Bus

Office Equipment

Tour Supplies

Prepaid Insurance

Accounts Receivable

Accounts Payable

Common Stock

Dividends

Tour Revenue

Parking Expense

Salary Expense

*Please use only the above account names for your journal entries. You won't need to use all of them.

Sept 1	Oliver invested $40,000 cash and his bus valued at $70,000 in the business in exchange for Common Stock.
Sept 2	Oliver paid $5,000 cash for office equipment to help him keep track of business activities.
Sept 3	Oliver bought tour supplies costing $7,500 on credit.
Sept 4	Oliver paid $1,000 for the first month's parking lot expense with cash.
Sept 5	Oliver paid $2,400 cash in advance for a six-month insurance policy.
Sept 10	Oliver received $4,500 cash from clients for his first tour
Sept 12	Oliver provided a $7,500 tour on credit, the customer has agreed to pay within 10 days.
Sept 19	Oliver paid for the tour supplies originally purchased on Sept 3.
Sept 22	Oliver receives payment on the account from the client entry on Sept 12.
Sept 29	Oliver paid his tour guide a salary of $2,000
Sept 30	The company paid $4,000 cash in dividends to the owner. (sole stockholder)

Answer 1