Question

Riverbed 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 $18,450 cash in exchange for common stock of the corporation. 1 Hired a secretary-receptionist at a salary of $384 per week, payable monthly. 2 Paid office rent for the month $923. 3 Purchased architectural supplies on account from Burmingham Company $1,333. 10 Completed blueprints on a carport and billed client $1,948 for services. 11 Received $718 cash advance from M. Jason to design a new home. 20 Received $2,870 cash for services completed and delivered to S. Melvin. 30 Paid secretary-receptionist for the month $1,536. 30 Paid $308 to Burmingham Company for accounts payable due.

A) JOURNALIZE THE TRANSACTIONS

B) POST THE TRANSACTIONS TO T-ACCOUNTS

C) PREPARE A TRIAL BALANCE AT OCTOBER 31, 2022.

Answer 1

A) Journal Entries
Date	Account Titles and Explanation	Debit	Credit
Apr. 1	Cash	$18,450
	Common Stock		$18,450
	(To record the cash invested into the business)
Apr. 1	No entry is prepared for hiring an employee because there is no financial impact.
Apr. 2	Rent Expense	$923
	Cash		$923
	(To record the payment of rent expense)
Apr. 3	Supplies	$1,333
	Accounts Payable - Burmingham Company		$1,333
	(To record the purchase of supplies on account)
Apr. 10	Accounts Receivable	$1,948
	Service Revenue		$1,948
	(To record the services provided on account)
Apr. 11	Cash	$718
	Unearned Service Revenue		$718
	(To record the collection of cash for the services to be performed in future)
Apr. 20	Cash	$2,870
	Service Revenue		$2,870
	(To record the services provided for cash)
Apr. 30	Salaries Expense	$1,536
	Cash		$1,536
	(To record the payment of salaries)
Apr. 30	Accounts Payable - Burmingham Company	$308
	Cash		$308
	(To record the payment made to creditors)

B) T-Accounts
Cash
Beg. Bal.	$0	Rent Expense	$923
Common Stock	$18,450	Salaries Expense	$1,536
Unearned Service Revenue	$718	Accounts Payable	$308
Service Revenue	$2,870
		End. Bal.	$19,271
	$22,038		$22,038
Accounts Receivable
Beg. Bal.	$0
Service Revenue	$1,948	End. Bal.	$1,948
	$1,948		$1,948
Supplies
Beg. Bal.	$0
Accounts Payable	$1,333	End. Bal.	$1,333
	$1,333		$1,333
Common Stock
		Beg. Bal.	$0
End. Bal.	$18,450	Cash	$18,450
	$18,450		$18,450
Accounts Payable
Cash	$308	Beg. Bal.	$0
End. Bal.	$1,025	Supplies	$1,333
	$1,333		$1,333
Service Revenue
		Accounts Receivable	$1,948
Income Summary	$4,818	Cash	$2,870
	$4,818		$4,818
Rent Expense
Cash	$923	Income Summary	$923
	$923		$923
Salaries Expense
Cash	$1,536	Income Summary	$1,536
	$1,536		$1,536
Unearned Service Revenue
		Beg. Bal.	$0
End. Bal.	$718	Cash	$718
	$718		$718

C) Trial Balance
October 31, 2022.
	Debit	Credit
Cash	$19,271
Accounts Receivable	$1,948
Supplies	$1,333
Common Stock		$18,450
Accounts Payable		$1,025
Service Revenue		$4,818
Rent Expense	$923
Salaries Expense	$1,536
Unearned Service Revenue		$718
Totals	$25,011	$25,011