Exercise 318 Novak Corp provides security services Selected

Exercise 3-18 Novak Corp. provides security services. Selected transactions for Novak Corp. are presented below. Oct. 1 Issued common stock in exchange for $62,000 cash from investors. 2 Hired part-time security consultant. Salary will be $1,900 per month. First day of work will be October 15 4 Paid 1 month of rent for building for $1,900 7 Purchased equipment for $16,900, paying $3,800 cash and the balance on account. 8 Paid $500 for advertising. 10 Received bill for equipment repair cost of $370. 12 Provided security services for event for $3,000 on account. 16 Purchased supplies for $390 on account. 21 Paid balance due from October 7 purchase of equipment. 24 Received and paid utility bill for $139 27 Received payment from customer for October 12 services performed. 31 Paid employee salaries and wages of $4,800

Solution

cash a/c

to common stock

( being stocks issued for cash)

rent a/c

to bank

equipment a/c

to cash

to creditors

3800

13100

advertising expenses a/c

to bank

repairs a/c

to bank

debtors a/c

to sales

purchases a/c

to creditors

creditors for equipment a/c

to bank

utility bill expenses a/c

to bank

bank a/c

to debtors

salaries and wages a/c

to bank

DATE	PARTICULARS	DEBIT	CREDIT
oct1	cash a/c to common stock ( being stocks issued for cash)	62000	62000
oct 2	no entry
oct 4	rent a/c to bank	1900	1900
oct 7	equipment a/c to cash to creditors	16900	3800 13100
oct 8	advertising expenses a/c to bank	500	500
oct 10	repairs a/c to bank	370	370
oct 12	debtors a/c to sales	3000	3000
oct 16	purchases a/c to creditors	390	390
oct 21	creditors for equipment a/c to bank	13100	13100
oct 24	utility bill expenses a/c to bank	139	139
oct 27	bank a/c to debtors	3000	3000
oct 31	salaries and wages a/c to bank	4800	4800