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 $18,990 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $396 per week, payable monthly.
2 Paid office rent for the month $950. 3 Purchased architectural supplies on account from Burmingham Company $1,372.
10 Completed blueprints on a carport and billed client $2,005 for services.
11 Received $739 cash advance from M. Jason to design a new home.
20 Received $2,954 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $1,584.
30 Paid $317 to Burmingham Company for accounts payable due.

Required:
Journalize the transactions.

Answer 1

Answer:

Ayala Architects

General Journal

April 1

Cash $18,990 (debit)

Common Stock $18,990 (credit)

Cash Received In Exchange of Common Stock

April 1

Salaries Expense $1,584 (debit)

Salaries Payable $1,584 (credit)

Salaries due to be Paid

April 2

Rent Expense $950 (debit)

Cash $950 (credit)

Rent paid in Cash

April 3

Supplies $1,372 (debit)

Accounts Payable : Burmingham Company $1,372 (credit)

Supplies Bought on Credit

April 10

Accounts Receivable $2,005  (debit)

Service Revenue $2,005  (credit)

Service Rendered on Credit

April 11

Cash $739 (debit)

Deferred  Revenue $739 (credit)

Cash Received for Service to be rendered

April 20

Cash $2,954 (debit)

Service Revenue $2,954 (credit)

Cash Received for Service Rendered

April 1

Salaries Payable $1,584 (debit)

Cash $1,584 (credit)

Salaries paid in Cash

April 30

Accounts Payable: Burmingham Company  $317 (debit)

Cash $317 (credit)

Payment made to Burmingham Company a Supplier

Explanation:

See the journal entries and narrations that i have prepared above.