Question

Novak Corp. provides security services. Selected transactions for Novak Corp. are presented below. Oct. 1 Issued common stock in exchange for $62,000 cash from investors. 2 Hired part-time security consultant. Salary will be $1,900 per month. First day of work will be October 15.4 Paid 1 month of rent for building for $2,100.7 Purchased equipment for $19,100, paying $4,200 cash and the balance on account.8 Paid $500 for advertising.10 Received bill for equipment repair cost of $410.12 Provided security services for event for $3,400 on account.16 Purchased supplies for $430 on account.21 Paid balance due from October 7 purchase of equipment.24 Received and paid utility bill for $157.27 Received payment from customer for October 12 services performed.31 Paid employee salaries and wages of $5,400.a) Journalize the transactions.

Answer 1

Answer:

The attached shows the journal entries in respect of Novark Corp. transactions for the month of October.

Every transaction has two impacts-debit and credit

Explanation:

Journal is a book of prime entry where transactions that cannot be posted to other books of original entry are treated.

Journal entry also observes the duality concept of accounting where each transaction in two accounts,for every debit,there is corresponding credit and vice versa.

Journal can also  be used to correct errors made while posting to books of account.

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