Question

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

Answer 1

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)