Question

Problems: Set A 147 Journalize transactions, post, and prepare a trial balance. (SD 3.5, 6, 7, 8), AP GLS P3-5A Towne Architects incorporated as licensed architects on April 1, 2012. During the first month of the operation of the business, these events and transactions occurred: Apr. 1 Stockholders invested $18,000 cash in exchange for common stock of the corporation. 1 Hired a secretary-receptionist at a salary of $375 per week, payable monthly 2 Paid office rent for the month $900. 3 Purchased architectural supplies on account from Spring Green Company $1,300. Completed blueprints on a carport and billed client $1,900 for services. Received $700 cash advance from J. Madison to design a new home. 20 Received $2,800 cash for services completed and delivered to M. Svetlana. 30 Paid secretary-receptionist for the month $1,500. 30 Paid $300 to Spring Green Company for accounts payable due. The company uses these accounts: Cash, Accounts Receivable, Supplies, Accounts Payable, Unearned Service Revenue, Common Stock, Service Revenue, Salaries and Wages Expense, and Rent Expense. Instructions (a) Journalize the transactions, including explanations. (b) Post to the ledger T accounts. (c) Prepare a trial balance on April 30, 2012 $18.800 (c) Cash Tot. trial balance $24.400

Answer 1

(a)

Date	General Journal	Debit	Credit
Apr. 1	Cash	18000
	Common stock		18000
	(To record issue of common stock for cash)
Apr. 1	No journal entry required.
Apr. 2	Rent expense	900
	Cash		900
	(To record office rent paid)
Apr. 3	Supplies	1300
	Accounts payable		1300
	(To record architectural supplies purchased on account)
Apr. 10	Accounts receivable	1900
	Service revenue		1900
	(To record billing for services rendered)
Apr. 11	Cash	700
	Unearned service revenue		700
	(To record cash advance received from client)
Apr. 20	Cash	2800
	Service revenue		2800
	(To record cash received for services rendered)
Apr. 30	Salaries and wages expense	1500
	Cash		1500
	(To record salary paid)
Apr. 30	Accounts payable	300
	Cash		300
	(To record payment on account)

(b)

Cash					Accounts Receivable
Apr. 1	18000	900	Apr. 2		Apr. 10	1900
Apr. 11	700	300	Apr. 30
Apr. 20	2800	1500	Apr. 30		Apr. 30 Bal.	1900
Apr. 30 Bal.	18800
Supplies					Accounts Payable
Apr. 3	1300				Apr. 30	300	1300	Apr. 3
Apr. 30 Bal.	1300				Apr. 30 Bal.		1000
Unearned Service Revenue					Common Stock
		700	Apr. 11				18000	Apr. 1
Apr. 30 Bal.		700			Apr. 30 Bal.		18000
Service Revenue					Salaries and Wages Expense
		1900	Apr. 10		Apr. 30	1500
		2800	Apr. 20
					Apr. 30 Bal.	1500
Apr. 30 Bal.		4700
Rent Expense
Apr. 2	900
Apr. 30 Bal.	900

(c)

Towne Architects
Trial Balance
April 30, 2022
Account	Debit	Credit
Cash	18800
Accounts receivable	1900
Supplies	1300
Accounts payable		1000
Unearned service revenue		700
Common stock		18000
Service revenue		4700
Salaries and wages expense	1500
Rent expense	900
Totals	24400	24400