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16 November, 09:43

Swifty Corporation provides security services. Selected transactions for Swifty Corporation are presented below. Oct. 1Issued common stock in exchange for $77,900 cash from investors. 2Hired part-time security consultant. Salary will be $2,400 per month. First day of work will be October 15.4Paid 1 month of rent for building for $2,400.7Purchased equipment for $21,200, paying $4,700 cash and the balance on account. 8Paid $2,500 for advertising. 10Received bill for equipment repair cost of $500.12Provided security services for event for $3,800 on account. 16Purchased supplies for $480 on account. 21Paid balance due from October 7 purchase of equipment. 24Received and paid utility bill for $175.27Received payment from customer for October 12 services performed. 31Paid employee salaries and wages of $6,000. Journalize the transactions.

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  1. 16 November, 10:16
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    Answer and Explanation:

    The Journal entry is shown below:-

    1. Cash Dr, $77,900

    To Common stock $77,900

    (Being common stock issued is recorded)

    2. No Journal Entry is required

    3. Rent expense Dr, $2,400

    To Cash $2,400

    (Being rent paid is recorded)

    4. Equipment Dr, $21,200

    To Cash $4,700

    To Accounts payable $16,500

    (Being Purchase on equipment is recorded)

    5. Advertisement expenses Dr, $2,500

    To Cash $2,500

    (Being paid on advertisement is recorded)

    6. Repair and maintenance Dr, $500

    To Accounts payable $500

    (Being bill received on repairs is recorded)

    7. Accounts receivable Dr, $3,800

    To service revenue $3,800

    (Being provided services is recorded)

    8. Supplies Dr, $480

    To Accounts payable $480

    (Being supplies purchase on account is recorded)

    9. Accounts payable Dr, $16,500

    To Cash $16,500

    (Being balance paid is recorded)

    10. Utilities Expenses Dr, $175

    To Cash $175

    (Being utilities expenses is recorded)

    11. Cash Dr, $3,800

    To Accounts receivable $3,800

    (Being cash is recorded)

    12. Salaries and wages expenses Dr, $6,000

    To Cash $6,000

    (Being salaries and wages is recorded)
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