MBA Program

Accounting Principles Course

Exercise (5)
Assignment

Beyers Security Company provides security services. Selected transactions for Beyers are
presented below for the month of October, 2022.
1 Invested $66,000 cash in the business.
2 Hired part-time security consultant. Salary will be $2,000 per month. First day of work will be
October 15.
4 Paid one month of rent for building for $2,000.
7 Purchased equipment for $18,000, paying $4,000 cash and the balance on account.
8 Paid $500 for advertising.
10 Received bill for equipment repair cost of $390.
12 Provided security services for event for $3,200 on account.
16 Purchased supplies for $410 on account.
21 Paid balance due from October 7 purchase of equipment.
24 Received and paid utility bill for $148.
27 Received payment from customer for October 12 services performed.
31 Paid employee salaries and wages of $5,100.

Instructions
a. Journalize the transactions.
b. Post the transactions to T-accounts.
c. Prepare a trial balance at October 31, 2022.
Journalizing the transactions
Oct 1
Cash.................................................................... 66,000
Owner’s Capital.......................................................66,000

Oct 4
Rent Expense .........................................................2,000
Cash...........................................................................2,000

Oct 7
Equipment.............................................................18,000
Cash........................................................................... 4,000
Account Payable....................................................... 14,000

Oct 8
Advertising Expense ................................................500
Cash................................................................................500

Oct 10
Maintenance and Repair Expense ............................390
Accounts Payable............................................................390

Oct 12
Accounts Receivable............................................3,200
Service Revenue...........................................................3,200

Oct 16
Supplies...................................................................410
Accounts Payable ............................................................410

Oct 21
Accounts Payable...............................................14,000
Cash .............................................................................14,000

Oct 24
Utility Expense .................................................... 148
Cash...................................................................................148

Oct 27
Cash ..................................................................3,200
Accounts Receivable......................................................3,200

Oct 31
Wages and Salaries Expense ............................. 5,100
Cash..............................................................................5,100
Posting transactions to ledger
Cash
1/10 66,000 4/10 2,000
27/10 3,200 7/10 4,000
8/10 500
21/10 14,000
24/10 148
31/10 5,100
End. Bal. 43,452

Owner’s Capital
1/10 66,000
End. Bal. 66,000

Rent Expense
4/10 2,000
End. Bal. 2,000
Equipment
7/10 18,000
End. Bal. 18,000

Accounts Payable
21/10 14,000 7/10 14,000
10/10 390
16/10 410
End. Bal. 800

Advertising Expense
8/10 500
End. Bal. 500

Maintenance and Repair Expense

10/10 390
End. Bal. 390

Accounts Receivable
12/10 3,200 27/10 3,200
End. Bal. 0
 Service Revenue
12/10 3,200
End. Bal. 3,200

Supplies
16/10 410
End. Bal. 410

Utilities Expense
24/10 148
End. Bal. 148

Wages and Salaries Expense

31/10 5,100
End. Bal. 5,100

Trial Balance on October 31, 2022

Beyers Security Company
Trial Balance
October 31, 2022
Account Debit Credit
Cash 43,452
Accounts Receivable 0
Supplies 410
Equipment 18,000
Accounts Payable 800
Owner’s Capital 66,000
Service Revenue 3,200
Rent Expense 2,000
Advertising Expense 500
Maintenance and Repair Expense 390
Utilities Expense 148
Wages Expense 5,100
Total 70,000 70,000