Question

AP3-2 il December 31, 2017 Recording Journal Entries (13-2) Sandro Spina is the president of TemPro Inc., a companu that provides temporary employees not-for-pront companies. TemPro has been operating for five wears, its revenues are increasing each passing year. You have been hired to help Sandro in analyzing the following transactions for the first two weeks of April Aprill Purchased office supplies for $2.600 on account. 3 Received the April telephone bill for $1,950 to be paid in May. 6 Billed the local United Way $23,500 for temporary services provided. 8 Paid $3,005 for supplies purchased and recorded on account last period 8 Placed an advertisement in the local paper for $1.400 cash. 9 Purchased a new computer for the office costing $2,300 cash. 10 Paid employee wages of $11,000. Or this amount, $3,800 had been eamed and recorded in the wages payable account in the prior period. 11 Received $12,500 on account from the local United Way office for services provided on April 5. 12 Purchased land as the site of a future office for $50,000. Paid $10,000 down and signed a note payable for the balance. The note is due in five years and has an annual interest rate of 10 percent. 13 Issued 3,000 additional shares for cash at $45 per share in anticipation of building a new office. 14 Billed Family & Children's Service $14,500 for services rendered. Required: Prepare a journal entry to record each of the transactions. Be sure to categorize each account as an asset (A), a liability (L), shareholders' equity (SE), a revenue (R), or an expense (E).

Answer 1

date account titles and explanations debit credit category $2,600 1-Apr office supplies accounts payable (to record purchase of office supplies) (A) (L) $2,600 $1,950 (E) 3-Apr utilities expense accounts payable (to record telephone expense) $1,950 (L) 5-Apr $23,500 accounts receivable service revenue (to record service revenue) $23,500 (R) 8-Apr $3,005 accounts payable cash (to record payment of cash) $3,005 8-Apr $1,400 advertisement expense cash (to record advertisement expense) (E) (A) $1,400 9-Apr $2,300 computer cash (to record purchase of computer) $2,300

date account titles and explanations debit credit category $3,800 $8,100 (L) (E) 10-Apr wages payable wages expense cash (to record payment of wages) $11,900 (A) $12,500 (A) 11-Apr cash accounts receivable (to record receipt of cash) $12,500 (A) 12-Apr $50,000 (A) (A) land cash notes payable (to record purchase of land) $10,000 $40,000 $135,000 (A) 13-Apr cash common stock (to record issue of common stock) $135,000 $14,500 (A) 14-Apr accounts receivable service revenue (to record service revenue) $14,500 (R)

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