Exercise 2 9 Journalizing, posting, preparing a trial balance, and financial statements LO3, 5, 6 CHECK FIGURES 4 Total debits $25,470 5 Total assets $17,530 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 2020, its first month of operations July 1 The owner, Manny Gill, invested $5,200 cash 10 Purchased $2,700 worth of security equipment on credit 12 Performed security services for a sold out concert and received $12,000 cash from the client 14 Paid for expenses $3,700 15 Completed security services for a graduation event and sent the client a bill for $1,600 31 The owner withdrew $270 cash for personal use Required Set up the following general ledger accounts using either the T account format or the balance column format Cash, 101 Accounts Receivable, 106 Equipment, 150 Accounts Payable, 201 Manny Gill, Capital, 301 Manny Gill, Withdrawals, 302 Revenue, 401 Expenses, 501 Record the journal entries for the month of July Post the July journal entries into your general ledger accounts Include the date next to each number posted Determine the balances Prepare a trial balance using the balances in your general ledger accounts West SecureTrial BalanceJuly 31, 2020 Acct No Account Title Debit Credit Prepare an income statement, statement of changes in equity, and balance sheet based on your trial balance Page 127 Analysis Component Assets are financed by debt and equity transactions, a concept reinforced by the accounting equation A L E Since accounts receivable are an asset, are they financed by debt and or equity Explain

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Exercise 2-9 Journalizing, posting, preparing a trial balance, and financial statements LO3, 5, 6 CHECK FIGURES: 4. Total debits = $25,470; 5. Total assets =

Exercise 2-9 Journalizing, posting, preparing a trial balance, and financial statements LO3, 5, 6

CHECK FIGURES: 4. Total debits = $25,470; 5. Total assets = $17,530

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 2020, its first month of operations:

July	1	The owner, Manny Gill, invested $5,200 cash.
	10	Purchased $2,700 worth of security equipment on credit.
	12	Performed security services for a sold-out concert and received $12,000 cash from the client.
	14	Paid for expenses; $3,700.
	15	Completed security services for a graduation event and sent the client a bill for $1,600.
	31	The owner withdrew $270 cash for personal use.

Required

Set up the following general ledger accounts using either the T-account format or the balance column format: Cash, 101; Accounts Receivable, 106; Equipment, 150; Accounts Payable, 201; Manny Gill, Capital, 301; Manny Gill, Withdrawals, 302; Revenue, 401; Expenses, 501.
Record the journal entries for the month of July.
Post the July journal entries into your general ledger accounts. Include the date next to each number posted. Determine the balances.
Prepare a trial balance using the balances in your general ledger accounts.

West SecureTrial BalanceJuly 31, 2020

Acct. No. Account Title Debit Credit

West SecureTrial BalanceJuly 31, 2020
Acct. No.	Account Title	Debit	Credit

Prepare an income statement, statement of changes in equity, and balance sheet based on your trial balance.

Page 127

Analysis Component:

Assets are financed by debt and equity transactions, a concept reinforced by the accounting equation: A = L + E. Since accounts receivable are an asset, are they financed by debt and/or equity? Explain.