Ayayai Corp. provides security services. Selected transactions for Ayayai Corp. are presented below
Oct 1. Issued common stock in exchange for $79,200 cash from investors.
2. Hired part-time security consultant. Salary will be $2,400 per month. First day of work will be October 15.
4. Paid 1 month of rent for building for $2,400.
7. Purchased equipment for $21,600, paying $4,800 cash and the balance on account.
8. Paid $2,600 for advertising. 10 Received bill for equipment repair cost of $510.
12. Provided security services for event for $3,800 on account.
16. Purchased supplies for $490 on account.
21. Paid balance due from October 7 purchase of equipment.
24. Received and paid utility bill for $178. 27 Received payment from customer for October 12 services performed.
31. Paid employee salaries and wages of $6,100.
Required:
a. Post the transactions to T-accounts.

Answer and Explanation:

The Transaction of T-accounts is shown below:-

1. Cash Account

                                      Cash

Date             Debit               Date          Credit

Oct 1             $79,200         Oct 4          $2,400

Oct 27          $3,800           Oct 7           $4,800

                                            Oct 8          $2,600

                                            Oct 21         $16,800

                                            Oct 24        $178

                                            Oct 31         $6,100

Balance      $50,122

Note Cash account has $50,122 debit balance on October 31.

2. Accounts receivable account

                        Accounts receivable

Date                   Debit              Date            Credit

Oct 12                 $3,800          Oct 27          $3,800

Balance              0

Accounts receivable account has $0 debit balance on October 31.

3. Supplies Account

                            Supplies

Date                   Debit              Date            Credit

Oct 16                 $490

Balance              $490

Supplies account has $490 debit balance on October 31.

4. Equipment Account

                                  Equipment

Date                   Debit              Date            Credit

Oct 7                  $21,600

Balance              $21,600

Equipment account has $21,600 debit balance on October 31.

5. Accounts payable account

                                  Accounts payable

Date                   Debit              Date            Credit

Oct 21                $16,800         Oct 7            $16,800

                                                Oct 10           $510

                                                Oct 16           $490

Balance                                                          $1,000

Accounts payable account has $1,000 credit balance on October 31.

6. Common stock account

                                   Common stock

Date                   Debit              Date            Credit

                                                 Oct 1             $79,200

Balance                                                         $79,200

Common stock account has $79,200 credit balance on October 31.

7. Service revenue account

                                  Service revenue

Date                   Debit              Date            Credit

                                                 Oct 12          $3,800

Balance                                                         $3,800

Service revenue account has $3,800 credit balance on October 31.

8. Advertising Expense account

                             Advertising Expenses

Date                   Debit              Date            Credit

Oct 8                  $2,600

Balance              $2,600

Advertising Expense account has $2,600 debit balance on October 31.

9. Salaries and Wages Expense account

                   Salaries and Wages Expense

Date                   Debit              Date            Credit

Oct 31                 $6,100

Balance              $6,100

Salaries and Wage Expense account has $6,100 debit balance on October 31.

10. Maintenance and Repairs Expense account

                Maintenance and Repairs Expense

Date                   Debit              Date            Credit

Oct 10                $510

Balance              $510

Maintenance and Repairs Expense account has $510 debit balance on October 31.

11.  Rent Expense account

                                Rent Expense

Date                   Debit              Date            Credit

Oct 4                 $2,400

Balance              $2,400

Rent Expense account has $2.400 debit balance on October 31.

12. Utilities Expense account

                                 Utilities Expense

Date                   Debit              Date            Credit

Oct 24               $178

Balance              $178

Utilities account has $178 debit balance on October 31.

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