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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
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. |
Required |
1. 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). |
2. Record the journal entries for the month of July. |
3. Post the July journal entries into your general ledger accounts. Include the date next to each number posted. Determine the balances. |
4. Prepare a trial balance using the balances in your general ledger accounts. |
5. Prepare the financial statements from your trial balance |
6. Answer the analysis component question |
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