Question

View Policies Current Attempt in Progress Sheffield Security Company provides security services. Selected transactions for Sheffield are as follows. Oct. 1 Invested $60,000 cash in the business. 2 Hired part-time security consultant. Salary will be $2,600 per month. First day of work will be October 15. Paid one month of rent for building for $2,600. 4 7 Purchased equipment for $17,000, paying $3,000 cash and the balance on account. 8 Paid $600 for advertising. 10 Received bill for equipment repair cost of $340. 12 Provided security services for event for $3,200 on account. 16 Purchased supplies for $400 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 $5,500. Journalize the transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit # #

Answer 1

Here are the journal entries for the transactions provided:

Oct. 1:
Cash 60,000
Owner's Equity (or Capital) 60,000

Oct. 2:
Salaries and Wages Expense 2,600
Cash (for October salary) 2,600

Oct. 2:
Rent Expense 2,600
Cash 2,600

Oct. 4:
Equipment 17,000
Cash (for $3,000 payment) 3,000
Accounts Payable 14,000

Oct. 8:
Advertising Expense 600
Cash 600

Oct. 10:
Equipment Repair Expense 340
Accounts Payable 340

Oct. 12:
Accounts Receivable 3,200
Service Revenue 3,200

Oct. 16:
Supplies Expense 400
Accounts Payable 400

Oct. 21:
Accounts Payable 14,000
Cash (for balance payment) 14,000

Oct. 24:
Utilities Expense 148
Cash 148

Oct. 27:
Cash 3,200
Accounts Receivable 3,200

Oct. 31:
Salaries and Wages Expense 5,500
Cash 5,500

Please note that the account titles used may vary based on the specific chart of accounts of Sheffield Security Company.