Question

Ayala Architects incorporated as licensed architects on April 1, 2017. During the first month of the operation of the business, these events and transactions occurred: Apr. 1 Stockholders invested $18,450 cash in exchange for common stock of the corporation. 1 Hired a secretary-receptionist at a salary of $384 per week, payable monthly. 2 Paid office rent for the month $923. 3 Purchased architectural supplies on account from Birmingham Company $1,333. 10 Completed blueprints on a carport and billed client $1,948 for services. 11 Received $718 cash advance from M. Jason to design a new home. 20 Received $2,870 cash for services completed and delivered to S. Melvin. 30 Paid secretary-receptionist for the month $1,536. 30 Paid $308 to Birmingham Company for accounts payable due.

Answer 1

Answer:

Cash                     18,450 debit

   Common Stock         18,450 credit

rent expense           923 debit

    cash                            923 credit

suplies               1,333 debit

cash                           1,333 credit

Accounts receivables 1,948 debit

           Services Revenue    1,948 credit

Cash         718 debit

   Unearned services 718 credit

Cash   2,870 debit

  Accounts Receivables 2870 credit

salaries expense 308 debit

          cash                   308 credit

Explanation:

To record the entries we must rembember that debit = credit

we should put the assets we acquire on debit.

as well as expenses.

Liabilities, equity and revenues  will go in credit side

The advance is considered unearned revenue and a liability as Ayala now has the obligation to perform to client M- Jason