Question

Ayayai Corp. provides security services. Selected transactions for Ayayai Corp. are presented below

Oct 1. Issued common stock in exchange for $79,200 cash from investors.
2. Hired part-time security consultant. Salary will be $2,400 per month. First day of work will be October 15.
4. Paid 1 month of rent for building for $2,400.
7. Purchased equipment for $21,600, paying $4,800 cash and the balance on account.
8. Paid $2,600 for advertising. 10 Received bill for equipment repair cost of $510.
12. Provided security services for event for $3,800 on account.
16. Purchased supplies for $490 on account.
21. Paid balance due from October 7 purchase of equipment.
24. Received and paid utility bill for $178. 27 Received payment from customer for October 12 services performed.
31. Paid employee salaries and wages of $6,100.
Required:
a. Post the transactions to T-accounts.

Answer 1

Answer and Explanation:

The Transaction of T-accounts is shown below:-

1. Cash Account

Cash

Date Debit Date Credit

Oct 1 $79,200 Oct 4 $2,400

Oct 27 $3,800 Oct 7 $4,800

Oct 8 $2,600

Oct 21 $16,800

Oct 24 $178

Oct 31 $6,100

Balance $50,122

Note Cash account has $50,122 debit balance on October 31.

2. Accounts receivable account

Accounts receivable

Date Debit Date Credit

Oct 12 $3,800 Oct 27 $3,800

Balance 0

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

3. Supplies Account

Supplies

Date Debit Date Credit

Oct 16 $490

Balance $490

Supplies account has $490 debit balance on October 31.

4. Equipment Account

Equipment

Date Debit Date Credit

Oct 7 $21,600

Balance $21,600

Equipment account has $21,600 debit balance on October 31.

5. Accounts payable account

Accounts payable

Date Debit Date Credit

Oct 21 $16,800 Oct 7 $16,800

Oct 10 $510

Oct 16 $490

Balance $1,000

Accounts payable account has $1,000 credit balance on October 31.

6. Common stock account

Common stock

Date Debit Date Credit

Oct 1 $79,200

Balance $79,200

Common stock account has $79,200 credit balance on October 31.

7. Service revenue account

Service revenue

Date Debit Date Credit

Oct 12 $3,800

Balance $3,800

Service revenue account has $3,800 credit balance on October 31.

8. Advertising Expense account

Advertising Expenses

Date Debit Date Credit

Oct 8 $2,600

Balance $2,600

Advertising Expense account has $2,600 debit balance on October 31.

9. Salaries and Wages Expense account

Salaries and Wages Expense

Date Debit Date Credit

Oct 31 $6,100

Balance $6,100

Salaries and Wage Expense account has $6,100 debit balance on October 31.

10. Maintenance and Repairs Expense account

Maintenance and Repairs Expense

Date Debit Date Credit

Oct 10 $510

Balance $510

Maintenance and Repairs Expense account has $510 debit balance on October 31.

11. Rent Expense account

Rent Expense

Date Debit Date Credit

Oct 4 $2,400

Balance $2,400

Rent Expense account has $2.400 debit balance on October 31.

12. Utilities Expense account

Utilities Expense

Date Debit Date Credit

Oct 24 $178

Balance $178

Utilities account has $178 debit balance on October 31.