Exercise 3-18 Novak Corp. provides security services. Selected transactions for
ID: 2606277 • Letter: E
Question
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 $4,800Explanation / Answer
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 oct1cash a/c
to common stock
( being stocks issued for cash)
62000 62000 oct 2 no entry oct 4rent a/c
to bank
1900 1900 oct 7equipment a/c
to cash
to creditors
169003800
13100
oct 8advertising expenses a/c
to bank
500 500 oct 10repairs a/c
to bank
370 370 oct 12debtors a/c
to sales
3000 3000 oct 16purchases a/c
to creditors
390 390 oct 21creditors for equipment a/c
to bank
13100 13100 oct 24utility bill expenses a/c
to bank
139 139 oct 27bank a/c
to debtors
3000 3000 oct 31salaries and wages a/c
to bank
4800 4800Related Questions
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