Question

Sarasota Architects incorporated as licensed architects on April 1, 2022. During the first month of the operation of the business, these events and transactions occurred:
Apr. 1 Stockholders invested $24,300 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $506 per week, payable monthly.
2 Paid office rent for the month $1,215.
3 Purchased architectural supplies on account from Burmingham Company $1,755.
10 Completed blueprints on a carport and billed client $2,565 for services.
11 Received $945 cash advance from M. Jason to design a new home.
20 Received $3,780 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $2,024.
30 Paid $405 to Burmingham Company for accounts payable due.

Required:
Journalize the transactions.

Answer 1

Answer:

Date        Account Titles and Explanation    Debit    Credit

Apr. 1       Cash                                               $24,300  

                    Common Stock                                          $24,300

              (To record the amount of cash invested into the business)

Apr. 1     No entry for hiring an employee because there is no monetary transaction.

Apr. 2       Office Rent                                       $1,215

                     Cash                                                          $1,215

              (To record the payment of office rent by cash)  

Apr. 3         Supplies                                            $1,755

                         Accounts Payable                                  $1,755

              (To record the purchase of supplies on account)  

Apr. 10         Accounts Receivable                      $2,565

                          Service Revenue                                     $2,565

               (To record the services provided on account)  

Apr. 11           Cash                                                  $945

                           Unearned Service Revenue                    $945

               (To record the receipt of cash for the services to be

                provided in future)

Apr. 20          Cash                                                  $3,780

                            Accounts Receivable                               $3,780

                (To record the collection of cash from the

                  credit services provided)

 

Apr. 30           Salaries Expense                              $2,024  

                              Cash                                                         $2,024

                  (To record the payment of salaries by cash)  

Apr. 30             Accounts Payable                             $405

                                Cash                                                         $405

                   (To record the payment of accounts payable due)