Question

Ajayi Art, Inc. opened for business on April 1st. Listed below are the transactions for Ajayi Art, Inc. for the month of April April 1 Issued common stock in exchange for $250,000 cash April 1 Purchased office equipment for $17,500 cash. . April 1 Borrowed $20,000 from Novus Bank and signed a 10% note. Interest and principal to be paid in 12 months. April 5 Paid $4,000 rent in advance for the art gallery for the next two months. April 10 Purchased art supplies from Wacky Art Co.on account for $12,200. April 12 Received $5,300 from a customer who commissioned a piece of custom art to be completed by the end of the year. April 15 Paid miscellaneous office expenses totaling $285 in cash. April 17 Billed customers $3,400 for art classes provided in March April 19 Paid $3,600 to Wacky Art Co April 25 Received $2,200 from customers on account. April 30 Recorded $3,800 in salaries for the month of April. Paychecks will be disbursed to employees on May 2nd Using an Excel spreadsheet, prepare the following: 1. Using the ACT350_CTTemplate_Mod2.xlsx file (in the module folder), enter the transactions shown above in appropriate general ledger accounts (use T-accounts). Use the following ledger accounts: Cash, Accounts Receivable, Supplies on Hand, Prepaid Rent, Office Equipment, Accumulated Depreciation, Accounts Payable, Common Stock, Service Revenue, Rent Expense, Miscellaneous Office Expense, Office Salaries Expense, Supplies Expense, Depreciation Expense, Retained Earnings, Unearned Revenue, Office Salaries Payable, Notes Payable, Interest Payable, and Interest Expense.

Answer 1

Cash

Accounts Payable

Supplies Expenses

April 1

2,50,000

17,500

April 1

April 19

3,600

12,200

April 10

April 1

20,000

4,000

April 5

April 12

5,300

285

April 15

April 25

2,200

3,600

April 19

Balance

2,52,115

8,600

Balance

Accounts Receivable

Common Stock

Depreciation Expenses

April 17

3,400

2,200

April 25

2,50,000

April 1

Balance

1,200

2,50,000

Balance

Supplies on hand

Service Revenue

Retained Earnings

April 10

12,200

3,400

April 17

Balance

12,200

3,400

Balance

Prepaid Rent

Rent Expenses

Unearned Revenue

April 5

4,000

5,300

April 12

Balance

4,000

5,300

Balance

Office Equipment

Miscellaneous Office Expenses

Office Salaries Payable

April 1

17,500

April 15

285

3800

April 30

Balance

17,500

Balance

285

3,800

Balance

Accumulated Depreciation

Office Salaries Expenses

Notes Payable

April 30

3,800

20,000

April 1

Balance

3,800

20,000

Balance

Interest Payable

Interest Expenses