Exercise 3-18 (Part Level Submission) Ayayai Corp. provides security services. S

Question

Exercise 3-18 (Part Level Submission) Ayayai Corp. provides security services. Selected transactions for Ayayai Corp. are presented below. Oct. 1 Issued common stock in exchange for $48,800 cash from investors. 2 Hired part-time security consultant. Salary will be $1,500 per month. First day of work will be October 15 4 Paid 1 month of rent for building for $1,500. 7 Purchased equipment for $13,300, paying $3,000 cash and the balance on account 8 Paid $400 for advertising. 10 Received bill for equipment repair cost of $290. 12 Provided security services for event for $2,400 on account. 16 Purchased supplies for $300 on account. 21 Paid balance due from October 7 purchase of equipment. 24 Received and paid utility bill for $110. 27 Received payment from customer for October 12 services performed 31 Paid employee salaries and wages of $3,800.

Explanation / Answer

1. Cash account

Note - Cash account has $32,090 debit balance on October 31.

2. Accounts receivable account

Note - Accounts receivable account has $0 debit balance on October 31.

3. Supplies account

Note - Supplies account has $300 debit balance on October 31.

4. Equipment account

Note - Equipment account has $13,300 debit balance on October 31.

5. Accounts payable account

Note - Accounts payable account has $590 credit balance on October 31.

6. Common stock account

Note - Common stock account has $48,800 credit balance on October 31.

7. Service revenue account

Note - Service revenue account has $2,400 credit balance on October 31.

8. Advertising Expense account

Note - Advertising Expense account has $400 debit balance on October 31.

9. Salaries and Wages Expense account

Note - Salaries and Wage Expense account has $3,800 debit balance on October 31.

10. Maintenance and Repairs Expense account

Note - Maintenance and Repairs Expense account has $290 debit balance on October 31.

11. Rent Expense account

Note - Rent Expense account has $1,500 debit balance on October 31.

12. Utilities Expense account

Note - Utilities account has $110 debit balance on October 31.

Cash Date Debit Date Credit Oct. 1 $48,800 Oct. 4 $1,500 Oct. 27 $2,400 Oct. 7 $3,000 Oct. 8 $400 Oct. 21 $10,300 Oct. 24 $110 Oct. 31 $3,800 Balance $32,090

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