Question

Bridgeport 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 $19,980 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $416 per week, payable monthly.
2 Paid office rent for the month $999.
3 Purchased architectural supplies on account from Birmingham Company $1,443.
10 Completed blueprints on a carport and billed client $2,109 for services.
11 Received $777 cash advance from M. Jason to design a new home.
20 Received $3,108 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $1,664.
30 Paid $333 to Birmingham Company for accounts payable due.
Journalize the transactions. Of no entry is required, select "No entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Answer 1

Answer and Explanation:

The journal entries are shown below:

1. Cash $19,980

To Common Stock $19,980

(Being the invested amount is recorded)

2. No journal entry is required

3. Rent Expense $999

To Cash $999

(Being the rent expense is recorded)

4. Supplies $1,443

To Accounts Payable $1,443

(being supplies purchased on account is recorded)

5. Accounts Receivable $2,109

To Service Revenues $2,109

(Being service provided is recorded)

6. Cash $777

To Unearned Revenues $777

(Being cash is recorded)

7. Cash $3,108

To Service Revenues $3,108

(Being cash is recorded)

8. Salary & Wages Expense $1,664

To Cash $1,664

(Being cash paid is recordeD)

9. Accounts Payable $333

To Cash $333

(Being cash paid is recorded)