assume you are interviewing for a part time accounting job at 239381

Assume you are interviewing for a part-time accounting job at Spilker & Associates, Inc., and the interviewer gives you the following list of company transactions in September 2012.

Sept. 1 Received $150,000 for capital stock issued.

2 Paid $20,000 cash to employees for wages earned in September 2012.

4 Purchased $75,000 of running shoes and clothing on account for resale.

5 Paid utilities of $1,800 for September 2012.

9 Paid $1,500 cash for September’s insurance premium.

11 Sold inventory of running shoes and clothing costing $35,000 for $70,000, with $20,000 received in cash and the remaining balance on credit.

15 Purchased $2,500 of supplies on account.

21 Received $25,000 from customers as payments on their accounts.

25 Paid $75,000 of accounts payable.

Using this list, you have been asked to do the following in the interview:

Required:

1. Journalize each of the transactions for September. (Omit explanations.)

2. Set up T-accounts, and post each of the journal entries made in (1).

3. Interpretive Question: If the business owners wanted to know at any given time how much cash the company had, where would you tell the owners to look? Why?

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