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30 April, 12:46

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

Oct. 1 Issued common stock in exchange for $59,400 cash from investors.

2 Hired part-time security consultant. Salary will be $1,800 per month. First day of work will be October 15.

4 Paid 1 month of rent for building for $1,800.

7 Purchased equipment for $16,200, paying $3,600 cash and the balance on account.

8 Paid $1,200 for advertising.

10 Received bill for equipment repair cost of $370.

12 Provided security services for event for $2,900 on account.

16 Purchased supplies for $370 on account.

21 Paid balance due from October 7 purchase of equipment.

24 Received and paid utility bill for $133.

27 Received payment from customer for October 12 services performed.

31 Paid employee salaries and wages of $4,600.

Required:

A) Journalize the transactions.

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Answers (1)
  1. 30 April, 13:00
    0
    Answer and Explanation:

    The Journal entry is shown below:-

    On Oct 1

    Cash Dr, $59,400

    To Common stock $59,400

    (Being the issuance of the common stock is recorded)

    On Oct 2

    No Journal entry is required

    On Oct 4

    Rent expenses Dr, $1,800

    To Cash $1,800

    (Being the rent expense is recorded

    On Oct 7

    Equipment Dr, $16,200

    To Cash $3,600

    To Accounts payable $12,600

    (Being equipment is recorded)

    On Oct 8

    Advertisement Dr, $1,200

    To Cash $1,200

    (Being cash paid is recorded)

    On Oct 10

    Repair expenses Dr, $370

    To Accounts payable $370

    (Being repair expenses is recorded)

    On Oct 12

    Accounts receivable Dr, $2,900

    To service revenue $2,900

    (Being service provided is recorded)

    On Oct 16

    Supplies Dr, 4370

    To Accounts payable $370

    (Being supplies purchased on account is recorded)

    On Oct 21

    Accounts payable Dr, $12,600

    ($16,200 - $3,600)

    To Cash $12,600

    (Being cash paid is recorded)

    On Oct 24

    Utility expenses Dr, $133

    To Cash $133

    (Being utility expense is recorded)

    On Oct 27

    Cash Dr, $2,900

    To Accounts receivable $2,900

    (Being cash received is recorded)

    On Oct 31

    Salaries and wages expenses Dr, $4,600

    To Cash $4,600

    (Being cash paid is recorded)
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