Towne Architects incorporated as licensed architects on April 1, 2012. During th

Question

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: April 1 Stockholders invested $17,859 cash in exchange for common stock of the corporation. 1 Hired a secretary-receptionist at a salary of $446 per week, payable monthly. 2 Paid office rent for the month $1,072. 3 Purchased architectural supplies on account from Spring Green Company $1,191. 10 Completed blueprints on a carport and billed client $1,786 for services. 11 Received $595 cash advance from J. Madison to design a new home. 20 Received $2,738 cash for services completed and delivered to M. Svetlana. 30 Paid secretary-receptionist for the month $1,784. 30 Paid $357 to Spring Green Company for accounts payable due. Journalize the transactions.

Explanation / Answer

April 1 Stockholders invested $17,859 cash in exchange for common stock of the corporation. Cash Dr. 17859 Common Stock Cr. 17859 1 Hired a secretary-receptionist at a salary of $446 per week, payable monthly. This event does not require a transaction (only when we have accrued the expense) 2 Paid office rent for the month $1,072. Rent Expense Dr. 1072 Cash Cr. 1072 3 Purchased architectural supplies on account from Spring Green Company $1,191. Supplies Dr. 1191 Accounts payable Cr. 1191 10 Completed blueprints on a carport and billed client $1,786 for services. Accounts receivable Dr. 1786 Service revenue Cr. 1786 11 Received $595 cash advance from J. Madison to design a new home. Cash Dr. 595 Unearned service revenue Cr. 595 20 Received $2,738 cash for services completed and delivered to M. Svetlana. Cash Dr. 2738 Service revenue Cr. 2738 30 Paid secretary-receptionist for the month $1,784. Salary expense Dr. 1784 Cash Cr. 1784 30 Paid $357 to Spring Green Company for accounts payable due. Accounts payable Dr. 357 Cash Cr. 357

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