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 $18,000 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $375 per week, payable monthly.
2 Paid office rent for the month $900.
3 Purchased architectural supplies on account from Burmingham Company $1,300.
10 Completed blueprints on a carport and billed client $1,900 for services.
11 Received $700 cash advance from M. Jason to design a new home.
20 Received $2,800 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $1,500.
30 Paid $300 to Burmingham Company for accounts payable due.

Required:
Journalize the transactions.

Answer 1

Apr. 1

Dr Cash 18000

Cr Common stock 18000

Apr. 1

No entry

Apr. 2

Dr Rent expense 900

Cr Cash 900

Apr. 3

Dr Supplies 1300

Cr Accounts payable 1300

Apr. 10

Dr Accounts receivable 1900

Cr Service revenue1900

Apr. 11

Dr Cash700

Cr Unearned service revenue700

Apr. 20

Dr Cash 2800

Cr Service revenue 2800

Apr. 30

Dr Salaries and wages expense 1500

Cr Cash1500

Apr. 30

Dr Accounts payable 300

Cr Cash300

Step-by-step explanation:

Preparation of the journal entries

Apr. 1

Dr Cash 18000

Cr Common stock 18000

Apr. 1

No entry

Apr. 2

Dr Rent expense 900

Cr Cash 900

Apr. 3

Dr Supplies 1300

Cr Accounts payable 1300

Apr. 10

Dr Accounts receivable 1900

Cr Service revenue1900

Apr. 11

Dr Cash700

Cr Unearned service revenue700

Apr. 20

Dr Cash 2800

Cr Service revenue 2800

Apr. 30

Dr Salaries and wages expense 1500

Cr Cash1500

Apr. 30

Dr Accounts payable 300

Cr Cash300