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Foyle Architects incorporated as licensed architects on April 1, 2014. During the first month of the operation of the business, these events and transactions occurred:

Apr. 1 Stockholders invested $21,341 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $445 per week, payable monthly.
2 Paid office rent for the month $1,067.
3 Purchased architectural supplies on account from Burlington Company $1,541.
10 Completed blueprints on a carport and billed client $2,253 for services.
11 Received $830 cash advance from J. Madison to design a new home.
20 Received $3,320 cash for services completed and delivered to M. Svetlana.
30 Paid secretary-receptionist for the month $1,780.
30 Paid $356 to Burlington Company for accounts payable due.
1.) Journalize the transactions. (If no entry is required, indicate "No entry". Record journal entries in the order presented in the problem.)
2.) Post to the ledger T-accounts. (Post entries in the order of journal entries presented in the question.)
3.) Prepare a trial balance on April 30, 201

User Benjaminz
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1 Answer

2 votes

Answer:

1)

April 1 Stockholders invested $21,341 cash in exchange for common stock of the corporation.

Dr cash 21,341

Cr common stock 21,341

April 1 Hired a secretary-receptionist at a salary of $445 per week, payable monthly.

no journal entry required

April 2 Paid office rent for the month $1,067.

Dr rent expense 1,067

Cr cash 1.067

April 3 Purchased architectural supplies on account from Burlington Company $1,541.

Dr supplies 1,541

Cr accounts payable 1,541

April 10 Completed blueprints on a carport and billed client $2,253 for services.

Dr accounts receivable 2,253

Cr service revenue 2,253

April 11 Received $830 cash advance from J. Madison to design a new home.

Dr cash 830

Cr unearned revenue 830

April 20 Received $3,320 cash for services completed and delivered to M. Svetlana.

Dr cash 3,320

Cr service revenue 3,320

April 30 Paid secretary-receptionist for the month $1,780.

Dr wages expense 1,780

Cr cash 1,780

April 30 Paid $356 to Burlington Company for accounts payable due.

Dr accounts payable 356

Cr cash 356

2)

Cash

debit credit

21,341

1.067

830

3,320

1,780

356

22,288

accounts receivable

debit credit

2,253

supplies

debit credit

1,541

accounts payable

debit credit

1,541

356

1,185

unearned revenue

debit credit

830

common stock

debit credit

21,341

service revenue

debit credit

2,253

3,320

5,573

rent expense

debit credit

1,067

wages expense

debit credit

1,780

3) debit credit

cash $22,288

accounts receivable $2,253

supplies $1,541

accounts payable $1,185

unearned revenue $830

common stock $21,341

service revenue $5,573

rent expense $1,067

wages expense $1,780

totals $28,929 $28,929

User Tharindu
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