Exercise 2-9 Journalizing, posting, preparing a trial balance, and financial statementsLO3,5,6 CHECK FIGURES:4. Total debits = $19,000; 5. Total assets = $15,250 Manny Gill is
Exercise 2-9
Journalizing, posting, preparing a trial balance, and financial statementsLO3,5,6
CHECK FIGURES:4. Total debits = $19,000; 5. Total assets = $15,250
Manny Gill is an entrepreneur who started West Secure, a business that provides a number of security guard services. West Secure incurred the following transactions during July 2017, its first month of operations:
July 1 The owner, Manny Gill, invested $5,000 cash. 10 Purchased $2,500 worth of security equipment on credit. 12 Performed security services for a sold-out concert and received $10,000 cash from the client. 14 Paid for expenses; $3.500. 15 Completed security services for a graduation event and sent the client a bill for $1,500. 31 The owner withdrew $250 cash for personal use.Wild West Secure Trial Balance July 31, 2017 Acct. No. Account Title Debit CreditWild West Secure Income Statement For Month Ended July 31, 2017 Revenue Expenses Profit Wild West Secure Statement of Changes In Equity For Month Ended July 31, 2017 Manny Gill. capital. July 1 ...... Add: Investments by owner Profit .. Total Less: Withdrawals by owner Manny Gill. capital. July 31 Wild West Secure Balance Sheet July 31, 2017 Assets Liabilities Cash .. Accounts payable ...... Accounts receivable . Equipment Equity Manny Gill, capital .. Total liabilities and equity ....... Total assets\fCash Accounts Receivable Office Equipment 15,000 3,800 22.500 Accounts Payable Unearned Revenue Aaron Paquette, Capital 8.000 2.600 4.500 Aaron Paquette, Withdrawals Consulting Revenues Salaries Expense 2,000 41.700 10.000 Rent Expense Utilities Expense 7,500 1,000Feb. 1 Performed work for a client and received cash of $8.500. 5 Paid $5,000 regarding outstanding accounts payable. 10 Received cash of $3,600 for work to be done in March. 12 Called FasCo Rentals to book the use of some equipment next month. The $400 rental fee will be paid in full when the equipment is returned. 17 The owner withdrew cash of $3,000 for personal use. 28 Paid salaries of $10,000.May = o s Wk Purchased equipment on account; $500. Paid for the equipment purchased on May 1. Purchased supplies for cash; $100. Paid wages to employees; $2,000. Performed services for a client and collected cash; $750. Did work for a customer on credit; $2,500. Collected the amount owing from the customer of May 6. Vahn Landscaping General Ledger Cash 101 Equipment 163 Unearned Brea Vahil, 5.000 6.000 4.000 Revenue 233 Capital 301 2.000 4.000 2.000 14,000 3.000 1,000 8.000 Brea Vahil, Utilities Withdrawals 302 Reverlue 401 Rent Ex pense 640 Ex pense 690 1,000 3.000 6.000 4,000 8.000lanuary 3 15 16 Stan Adams opened a landscaping business by investing $60,000 cash and equipment having a $40.000 fair value. Purchased office supplies on credit for $340. Received $5,200 for providing landscaping services to a customer. Paid $200 regarding the office supplies purchase of January 4. Purchased $700 of office supplies on account. Paid the balance owing regarding the office supplies purchase of Januany 4
