Question

Concord Security Company provides security services. Selected transactions for Concord are presented below. Oct. 1 Invested $66,000 cash in the business. 2 Hired part-time security consultant. Salary will be $2,000 per month. First day of work will be October 15, 4 Paid one month of rent for building for $2,000. 7 Purchased equipment for $15,000, paying $3,700 cash and the balance on account 8 Paid $400 for advertising. 10 Received bill for equipment repair cost of $320. 12 Provided security services for event for $3,800 on account 16 Purchased supplies for $460 on account 21 Paid balance due from October 7 purchase of equipment. 24 Received and paid utility bill for $158. 27 Received payment from customer for October 12 services performed 31 Paid employee salaries and wages of $5,000. (a) Journalize the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Recordjo the problem. If no entry is required, select "No Entry for the account tities and enter o for the amounts.)

Answer 1

Journal Entries:

Date	Account title and Explanation	Debit	Credit
Oct.1	Cash	$66,000
	Common stock		$66,000
	[To record investment in business]
Oct.2	No Entry
Oct.4	Rent expense	$2,000
	Cash		$2,000
	[To record payment of rent]
Oct.7	Equipment	$15,000
	Cash		$3,700
	Accounts payable		$11,300
	[To record purchase of equipment]
Oct.8	Advertising expense	$400
	Cash		$400
	[To record payment of advertising expense]
Oct.10	Repair expense	$320
	Accounts payable		$320
	[To record repair expense]
Oct.12	Accounts receivable	$3,800
	Service revenue		$3,800
	[To record services performed on account]
Oct.16	Supplies	$460
	Accounts payable		$460
	[To record purchase of supplies on account]
Oct.21	Accounts payable	$11,300
	Cash		$11,300
	[To record cash paid for accounts payable]
Oct.24	Utilities expense	$158
	Cash		$158
	[To record payment of utilities]
Oct.27	Cash	$3,800
	Accounts receivable		$3,800
	[To record collections from customers]
Oct.31	Salaries and wages expense	$5,000
	Cash		$5,000
	[To record payment of salaries and wages expense]