Thind Security Company: Recording Transactions & Journal Entries

School: George Brown College Canada - Course: ACCOUNTING 1036 - Subject: Accounting

Chapter 2 The Demonstration Problem below includes an Action Plan and electronic Working Papers (in Excel). Download the Working Papers and complete the problem, using the Action Plan (be sure to save your work). Once you've completed the problem, you can compare to the Solution, also available below. Demonstration Problem 2 [LO 2] Thind Security Company provides security services.Selected transactions for Thind are presented below. Oct.1 Rasna Thind invested $66,000 cash in the business. 2 Hired a part-time security consultant.Salary will be $2,000 per month and the employee's first day of work will be October 15. 2Paid $500 for advertising for this month. 3Paid the $185 monthly insurance premium. 4 Paid October rent, $950. 7Purchased equipment for $18,000, paying $4,000 cash and signing a note payable for the balance. 10 Received the bill for equipment repair costs of $390.This is due on November 5. 12Provided security services for an event for $3,200 on account. 16Purchased office supplies for $410 on account. 24 Received and paid the October utility bill for $148. 26Received the payment in full from the client billed in the October 12 transaction. 26Provided security services to a client and collected $550 cash. 28Collected a $1,400 cash advance for a security contract that begins on November 1. 29Received the October telephone bill for $175.It will be paid in November. 30Paid the balance due for the purchase of supplies on October 16. 31Made a $580 payment on the note payable.Of this amount, $80 is interest and the remainder is a principal repayment on the note payable. 31Paid Rasna, the owner, $2,500 cash for her personal use. 31 Paid the employee salary of $1,000. Instructions Prepare the journal entries to record each of the events listed. Action Plan

Separate journal entries are made for each transaction. In journalizing, make sure debits equal credits. Provide an appropriate description of each journal entry.