LP DCanvas UsC Marshall S Kimmel Accounting Ge CALCULATOR PR

LP DCanvas UsC Marshall S Kimmel, Accounting, Ge CALCULATOR PRINTER VERSION Exercise 3-18 Beyers Corporation provides security services. Selected transactions for Beyers Corporation are presented below. Issued common stock in exchange for $66,000 cash from vestors. security consultant. Salary will be $2,000 per month. First day of work will be October 15 2 Hired part-time security consultant. Salary will be $2,000 per month 4 Paid 1 month of rent for building for $2,000. 7 Purchased equipment for $18,000, paying $4,000 cash and the balance on account 8 Paid $500 for advertising. 10 Received bill for equipment repair cost of $390 12 Provided security services for event for $3,200 on account. 16 Purchased supplies for $410 on account. 21 Paid balance due from October 7 purchase of equipment 24 Received and paid utility bill for $148 27 Received payment from customer for October 12 services performed 31 Paid employee salaries and wages of $5,100 Journalize the transactions. (If no entry is required, select -No entry-for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries i in the order presented in the problem.) Date Account Titles and Explanation Debit show A

Solution

Answer a. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1-Oct Cash    66,000.00 Common Stock    66,000.00 (record the issue of Common Stock) 2-Oct No Entry 4-Oct Rent Expenses      2,000.00 Cash      2,000.00 (record the rent paid) 7-Oct Equipment    18,000.00 Cash      4,000.00 Accounts Payable    14,000.00 (record the equipment purchased) 8-Oct Advertising Expense          500.00 Cash          500.00 (record the advertsing paid) 10-Oct Maintenance & Repair Expense          390.00 Accounts Payable          390.00 (record the repair expense for equipment) 12-Oct Accounts Receivable      3,200.00 Service Revenue      3,200.00 (record the services provided on account) 16-Oct Supplies          410.00 Accounts Payable          410.00 (record the supplies on account) 21-Oct Accounts Payable    14,000.00 Cash    14,000.00 (record the cash paid) 24-Oct Utilities Expense          148.00 Cash          148.00 (record the utilities expense paid) 27-Oct Cash      3,200.00 Accounts Receivable      3,200.00 (record the cash received) 31-Oct Salaries & Wage Expense      5,100.00 Cash      5,100.00 (record the salaries & Wages paid) Answer b. Cash Accounts Receivable Supplies 1-Oct      66,000.00        2,000.00 4-Oct 12-Oct        3,200.00      3,200.00 27-Oct 16-Oct          410.00 27-Oct        3,200.00        4,000.00 7-Oct            500.00 8-Oct      14,000.00 21-Oct            148.00 24-Oct        5,100.00 31-Oct End. Bal.      43,452.00 End. Bal.                     -   End. Bal.          410.00 Equipment Accounts Payable Common Stock 7-Oct      18,000.00 21-Oct      14,000.00    14,000.00 7-Oct      66,000.00 1-Oct          390.00 10-Oct          410.00 16-Oct End. Bal.      18,000.00 End. Bal.          800.00 End. Bal.      66,000.00 Service Revenue Advertising Expense Salaries & Wage Expense        3,200.00 12-Oct 8-Oct            500.00 31-Oct      5,100.00 End. Bal.        3,200.00 End. Bal.            500.00 End. Bal.      5,100.00 Maintenance & Repair expense Rent Expense Utilities Expense 10-Oct            390.00 4-Oct        2,000.00 24-Oct          148.00 End. Bal.            390.00 End. Bal.        2,000.00 End. Bal.          148.00 Answer c. BEYERS CORPORATION Trial Balance As of Oct-31 Accounts Title Debits Credits Cash      43,452.00 Accounts Receivable                     -   Supplies            410.00 Equipment      18,000.00 Utilities Expense            148.00 Accounts Payable            800.00 Common Stock      66,000.00 Service Revenue        3,200.00 Advertising Expense            500.00 Salaries & Wage Expense        5,100.00 Maintenance & Repair expense            390.00 Rent Expense        2,000.00 Total      70,000.00      70,000.00