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 $24,210 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $504 per week, payable monthly.
2 Paid office rent for the month $1,210.
3 Purchased architectural supplies on account from Burmingham Company $1,748.
10 Completed blueprints on a carport and billed client $2,555 for services.
11 Received $941 cash advance from M. Jason to design a new home.
20 Received $3,766 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $2,016.
30 Paid $403 to Burmingham Company for accounts payable due.

Required:
Journalize the transactions.

Answer 1

April 1 Stockholders invested $24,210 cash in exchange for common stock of the corporation.

Dr Cash 24,120

Cr Common stock 24,120

April 1 Hired a secretary-receptionist at a salary of $504 per week, payable monthly.

no journal entry required

April 2 Paid office rent for the month $1,210.

Dr Rent expense 1,210

Cr Cash 1,210

April 3 Purchased architectural supplies on account from Burmingham Company $1,748.

Dr Supplies 1,748

Cr Accounts payable 1,748

April 10 Completed blueprints on a carport and billed client $2,555 for services.

Dr Accounts receivable 2,555

Cr Service revenue 2,555

April 11 Received $941 cash advance from M. Jason to design a new home.

Dr Cash 941

Cr Deferred revenue 941

April 20 Received $3,766 cash for services completed and delivered to S. Melvin.

Dr Cash 3,766

Cr Service revenue 3,766

April 30 Paid secretary-receptionist for the month $2,016.

Dr Wages expense 2,016

Cr Cash 2,016

April 30 Paid $403 to Burmingham Company for accounts payable due.

Dr Accounts payable 403

Cr Cash 403