Question

Flint Corporation provides security services. Selected transactions for Flint Corporation are presented below.

Oct.
1 Issued common stock in exchange for $75,200 cash from investors.
2 Hired part-time security consultant. Salary will be $2,300 per month. First day of work will be October 15.
4 Paid 1 month of rent for building for $2,300.
7 Purchased equipment for $20,500, paying $4,600 cash and the balance on account.
8 Paid $2,300 for advertising.
10 Received bill for equipment repair cost of $480.
12 Provided security services for event for $3,600 on account.
16 Purchased supplies for $470 on account.
21 Paid balance due from October 7 purchase of equipment.
24 Received and paid utility bill for $169.
27 Received payment from customer for October 12 services performed.
31 Paid employee salaries and wages of $5,800.
Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Post the transactions to T-accounts. (Post entries in the order of journal entries presented in the previous part. For accounts with zero balance select "Balance" from the list and enter "0" or leave it blank.)
Prepare a trial balance at October 31, 2017.

Answer 1

Date Account Titles Debit Credit

1-Oct Cash $75,200

Common Stock $75,200

2-Oct No entry required $0

4-Oct Rent Expenses $2,300

Cash $2,300

7-Oct Equipment $20,500

Cash $4,600

8-Oct Advertising expenses $2,300

Cash $2,300

10-Oct Repair expenses $480

Account payable $480

12-Oct Account Receivables $3,600

Service revenue $3,600

16-Oct Supplies $470

Account Payable $470

21-Oct Accounts payable $15,900

Cash $15,900

24-Oct Utility expenses $169

Cash $169

27-Oct Cash $3,600

Account receivables $3,600

31-Oct Salaries & Wages Ex $5,800

Cash $5,800