Question

Blue Spruce 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 1 2 3 10 11 20 30 30 Stockholders invested $26,100 cash in exchange for common stock of the corporation Hired a secretary-receptionist at a salary of $544 per week, payable monthly Paid office rent for the month $1,305. Purchased architectural supplies on account from Burmingham Company $1,885. Completed blueprints on a carport and billed client $2,755 for services. Received $1,015 cash advance from M. Jason to design a new home. Received $4,060 cash for services completed and delivered to S. Melvin. Paid secretary-receptionist for the month $2,176. Paid $435 to Burmingham Company for accounts payable due. Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter of amount is entered. Do not indent manually.

Answer 1

Answer and Explanation:

The Journal entry is shown below:-

1. Cash Dr, $26,100

To Common stock $26,100

(Being Cash in exchange of common stock is recorded)

2. No Journal Entry is required

3. Office rent expenses Dr, $1,305

To cash $1,305

(Being is office rent is recorded)

4. Accounts receivable Dr, $1,885

To Accounts payable $1,885

(Being architectural supplies is recorded)

5. Accounts receivable Dr, $2,755

To Service revenue $2,755

(Being service revenue is recorded)

6. Cash Dr, $1,015

To Unearned revenue $1,015

(Being cash is recorded)

7. Cash Dr, $4,060

To Service revenue $4,060

(Being cash is recorded)

8. Salary expenses Dr, $2,176

To Cash $2,176

(Being salary expenses is recorded)

9.Accounts payable Dr, $435

To Cash $435

(Being accounts payable is recorded)