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Ayala Architects incorporated as licensed architects on April 1, 2017. During th

ID: 2338928 • Letter: A

Question

Ayala Architects incorporated as licensed architects on April 1, 2017. During the first month of the operation of the business, these events and transactions occurred: Stockholders invested $ 20,700 cash in exchange for common stock of the corporation. 1 Apr. 1 Hired a secretary-receptionist at a salary of $431 per week, payable monthly. 2 Paid office rent for the month $1,035. 3 Purchased architectural supplies on account from Burmingham Company $ 1,495 10 Completed blueprints on a carport and billed client $ 2,185 for services. 11 Received $ 805 cash advance from M. Jason to design a new home. 20 Received $ 3,220 cash for services completed and delivered to S. Melvin. 30 Paid secretary-receptionist for the month $ 1,724 urmingham Company for accounts payable due.

Explanation / Answer

Ayala Architects

Cash

Accounts Receivable

Debit

Credit

Debit

Credit

Date

Description

Amount

Date

Description

Amount

Date

Description

Amount

Date

Description

Amount

1-Apr-17

Common Stock

$20,700

2-Apr-17

Rent Expense

$1,035

10-Apr-17

Service Revenue

$2,185

11-Apr-17

Unearned Revenue

$805

30-Apr-17

Ending Balance

$2,185

20 Apr, 17

Service Revenue

$3,220

30-Apr-17

Salary Expense

$1,724

$2,185

$2,185

30-Apr

Accounts Payable

$345

30-Apr-17

Ending Balance

21,621

$24,725

$24,725

Unearned Revenue

Service Revenue

Debit

Credit

Debit

Credit

Date

Description

Amount

Date

Description

Amount

Date

Description

Amount

Date

Description

Amount

10-Apr-17

Cash

$805

10-Apr-17

Accounts Receivable

$2,185

30-Apr-17

Ending Balance

$805

$805

20-Apr-17

Cash

$3,220

30-Apr-17

Ending Balance

$5,405

$5,405

Supplies

Accounts Payable

Debit

Credit

Debit

Credit

Date

Description

Amount

Date

Description

Amount

Date

Description

Amount

Date

Description

Amount

3-Apr-17

Accounts Payable

$1,495

30-Apr-17

Ending Balance

$1,495

30-Apr-17

Cash

$345

3-Apr-17

Supplies

$1,495

$1,495

$1,495

30-Apr-17

Ending balance

$1,150

$1,150

$1,150

Common Stock

Salaries and Wages Expense

Debit

Credit

Debit

Credit

Date

Description

Amount

Date

Description

Amount

Date

Description

Amount

Date

Description

Amount

1-Apr-17

Cash

$20,700

30-Apr-17

Cash

$1,724

30-Apr-17

Ending Balance

$1,724

30-Apr-17

Ending Balance

$20,700

$1,724

$1,724

$20,700

$20,700

Rent Expense

Debit

Credit

Date

Description

Amount

Date

Description

Amount

2-Apr-17

Cash

$1,035

30-Apr-17

Ending Balance

$1,035

$1,035

$1,035

Trial Balance –

Ayala Architects

Trial Balance as on April 30, 2017

Account Titles

Debit

Credit

Cash

$21,621

Accounts Receivable

$2,185

Supplies

$1,495

Accounts Payable

$1,150

Unearned Service Revenue

$805

Service Revenue

$5,405

Common Stock

$20,700

Salaries and Wages Expense

$1,724

Rent Expense

$1,035

Total

$28,060

$28,060

Cash

Accounts Receivable

Debit

Credit

Debit

Credit

Date

Description

Amount

Date

Description

Amount

Date

Description

Amount

Date

Description

Amount

1-Apr-17

Common Stock

$20,700

2-Apr-17

Rent Expense

$1,035

10-Apr-17

Service Revenue

$2,185

11-Apr-17

Unearned Revenue

$805

30-Apr-17

Ending Balance

$2,185

20 Apr, 17

Service Revenue

$3,220

30-Apr-17

Salary Expense

$1,724

$2,185

$2,185

30-Apr

Accounts Payable

$345

30-Apr-17

Ending Balance

21,621

$24,725

$24,725

Unearned Revenue

Service Revenue

Debit

Credit

Debit

Credit

Date

Description

Amount

Date

Description

Amount

Date

Description

Amount

Date

Description

Amount

10-Apr-17

Cash

$805

10-Apr-17

Accounts Receivable

$2,185

30-Apr-17

Ending Balance

$805

$805

20-Apr-17

Cash

$3,220

30-Apr-17

Ending Balance

$5,405

$5,405

Supplies

Accounts Payable

Debit

Credit

Debit

Credit

Date

Description

Amount

Date

Description

Amount

Date

Description

Amount

Date

Description

Amount

3-Apr-17

Accounts Payable

$1,495

30-Apr-17

Ending Balance

$1,495

30-Apr-17

Cash

$345

3-Apr-17

Supplies

$1,495

$1,495

$1,495

30-Apr-17

Ending balance

$1,150

$1,150

$1,150

Common Stock

Salaries and Wages Expense

Debit

Credit

Debit

Credit

Date

Description

Amount

Date

Description

Amount

Date

Description

Amount

Date

Description

Amount

1-Apr-17

Cash

$20,700

30-Apr-17

Cash

$1,724

30-Apr-17

Ending Balance

$1,724

30-Apr-17

Ending Balance

$20,700

$1,724

$1,724

$20,700

$20,700

Rent Expense

Debit

Credit

Date

Description

Amount

Date

Description

Amount

2-Apr-17

Cash

$1,035

30-Apr-17

Ending Balance

$1,035

$1,035

$1,035

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