Question

2. The following transactions of Maple Realtors were completed during May of the current year: May 1 Joe Maple created Maple Realtors by investing $15,000 cash. 2 Paid a total of $500 for office rent for May. 3 Purchased office supplies for $80 cash. 4 Purchased office equipment for $125 on account 5 Billed clients $2,000 for brokerage service rendered. 8 Collected amounts billed to clients in the amount of $1,500. 10 Took out an advertising costing $50 in a local newspaper, paying $10 in cash and recording the balance of $40 as an accounts payable 11 Made a $25 payment on accounts payable for office equipment purchased in May 4. 12 Received $600 from a client as an advance payment for four month's service in managing some rental property. 15 Joe Maple withdrew $200 for personal use. 18 Collected accounts receivable in the amount of $500 20 Paid $255 for an attorney's fee for legal services rendered. 25 paid $75 for utilities for the month. 28 Paid the secretary's salary of $850 for the month. 29 Received $2,500 in cash for brokerage fees earned. 31 Paid $500 in advance for a one-year insurance policy. Required: Provide the necessary entries to record the above transactions,

Answer 1

	JOURNAL ENTRY
	DATE	ACCOUNT TITLES and EXPLANATIONS	DEBIT	CREDIT
	May,1	Cash	$15,000
		Common Stock		$15,000
		(To record issue of common stock)
	May,2	Rent Expense	$500
		Cash		$500
		(To record rent expense)
	May,3	Office Supplies	$80
		Cash		$80
		(To record purchase of office supplies)
	May,4	Office Equipment	$125
		Accounts Payable		$125
		(To record purchase of Office Equipment)
	May,5	Accounts Receivable	$2,000
		Service Revenue		$2,000
		(To record Service Revenue Earned)
	May,8	Cash	$1,500
		Accounts Receivable		$1,500
		(To record collection from customer)
	May,10	Advertising expenses	$50
		Cash		$10
		Accounts Payable		$40
		(To record advertising expense)
	May,11	Accounts Payable	$25
		Cash		$25
		(To record partial payment for Equipment)
	May,12	Cash	$600
		Unearned Revenue		$600
		(To record receipt of Advance for Services)
	May,15	Owners drawal	$200
		Cash		$200
		(To record owners cash drawal)
	May,18	Cash	$500
		Accounts Receivable		$500
		(To record collection from customer)
	May,20	Legal expenses	$255
		Cash		$255
		(To record legal expenses)
	May,25	Utilities expenses	$75
		Cash		$75
		(To record utilities expenses)
	May,28	Salaries expenses	$850
		Cash		$850
		(To record salaries expenses)
	May,29	Cash	$2,500
		Service Revenue		$2,500
		(To record Service Revenue)
	May,31	Prepaid Insurance	$500
		Cash		$500
		(To record payment for insurance)