Question

P3.5A (LO 3, 4, 5), AP Ayala Architects incorporated as licensed architects on April 1, 2022. During the first month of the operation of the business, these events and transactions occurred:

Journalize transactions, post, and prepare a trial balance.

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 Burmingham Company $1,300.
	10		Completed blueprints on a carport and billed client $1,900 for services.
	11		Received $700 cash advance from M. Jason to design a new home.
	20		Received $2,800 cash for services completed and delivered to S. Melvin.
	30		Paid secretary-receptionist for the month $1,500.
	30		Paid $300 to Burmingham 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, 2022.

Cash	$18,800
Tot. trial balance	$24,400

Answer 1

a.

Credit Date Apr. 1 Account title and explanation Cash Common stock Debit 18,000 18,000 Apr. 1 NO entry 900 Apr. 2 Rent expense Cash 900 Apr. 3 1,300 Supplies Accounts payable 1,300 1,900 Apr. 10 Accounts receivable Service revenue 1,900 700 Apr. 11 Cash Unearned service revenue 700 2,800 Apr. 20 Cash Service revenue 2,800 1,500 Apr. 30 Salaries and wages expense Cash 1,500 300 Apr. 30 Accounts payable Cash 300

b.

Accounts receivable Apr. 101,900 Apr. 1 Apr. 11 Apr. 20 Bal. Cash 18,000 Apr. 2 900 700 Apr. 30 1,500 2,800 Apr. 30. 300 18,800 Bal. 1,900 Supplies 1,300 1,300 Apr. 3 Bal. Apr. 30 Accounts payable 300 Apr. 3 Bal. 1,300 1,000 Unearned service revenue Apr. 11 700 Bal. 700 Common stock Apr. 1 18,000 Bal. 18,000 Salaries and wages expense Apr. 30 1,500 Service revenue Apr. 101,900 Apr. 20 2,800 Bal. 4,700 Bal. 1,500 Apr. 2 Bal. Rent expense 900 900

c.

Ayala Architects Trial balance Apr. 30, 2022 Cash 18,800 Accounts receivable 1,900 Supplies 1,300 Accounts payable Unearned service revenue Common stock Service revenue Salaries and wages expense Rent expense 900 Totals 24,400 1,000 700 18,000 4,700 24,400