Question

Diana Mark is the president of servicesPro, Inc., a company that provides temporary employees for not-for-profit companies. ServicesPro has been operating for five years; its revenues are increasing with each passing year. You have been hired to help Diana in analyzing the following transaction for the first two weeks of April.

April 2 Purchased and received office supplies for $600 on account

April 5 Billed the Local United Way office $3400 for temporary services provided

April 8 Paid $270 for supplies purchased and recorded on account last period

April 8 Placed an advertisement in the local paper for $500 in cash

April 9 Purchased new equipment for the office costing $2500 cash

April 10 Paid employee wages of $1,400 incurred in April

April 11 Received $1,200 on account from the Local United Way office billed on April 5

April 12 Purchased land as the site of a future office for $11,000. The land value was appraised as $13,000. Paid $2,200 down and signed a long-term note payable for the balance.

April 13 Issued $2,200 additional shares of common stock for $40 per share in anticipation of building a new office.

April 14 Billed Family & Children's Services $2,200 for services rendered this month

April 15 Received the April utilities bill for $400 to be paid next month

Required:

For each of the transaction, prepare journal entries

Answer 1

ServicesPro, Inc.
Journal entries
Date	Account	Debit	Credit	Calculation
2-Apr	Office Supplies	$           600
	Accounts Payable		$           600
5-Apr	Accounts Receivable	$        3,400
	Service Revenue		$        3,400
8-Apr	Accounts Payable	$           270
	Cash		$           270
8-Apr	Advertisement expense	$           500
	Cash		$           500
9-Apr	Equipment	$        2,500
	Cash		$        2,500
10-Apr	Wages expense	$        1,400
	Cash		$        1,400
11-Apr	Cash	$        1,200
	Accounts Receivable		$        1,200
12-Apr	Land	$     11,000
	Cash		$        2,200
	Notes Payable		$        8,800
13-Apr	Cash	$     88,000		=2,200*40
	Common Stock		$     88,000
14-Apr	Accounts Receivable	$        2,200
	Service Revenue		$        2,200
15-Apr	Utilities expense	$           400
	Accounts Payable		$           400