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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:
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: Apr.
1 Stockholders invested $22,770 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $474 per week, payable monthly.
2 Paid office rent for the month $1,138.
3 Purchased architectural supplies on account from Burmingham Company $1,644.
10 Completed blueprints on a carport and billed client $2,403 for services.
11 Received $885 cash advance from M. Jason to design a new home.
20 Received $3,542 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $1,896.
30 Paid $379 to Burmingham Company for accounts payable due.
Required:
Journalize the transactions.
Answer:Ayala ArchitectsJournal Entries:Apr. 1 Debit Cash $22,770Credit Common Stock $22,770To record common stock for cash.Apr. 2 Debit Rent Expense $1,138Credit Cash $1,138To record rent expense paid for cash.Apr. 3 Debit Supplies $1,644Credit Cash $1,644To record Supplies paid for cash.Apr. 10 Debit Accounts Receivable $2,403Credit Service Revenue $2,403To record services rendered on account.Apr. 11 Debit Cash $885Credit Deferred Revenue $885To record cash receipt for services not yet rendered.Apr. 20 Debit Cash $3,542Credit Service Revenue $3,542To record cash received for services rendered.Apr. 30 Debit Salaries $1,896Credit Cash $1,896To record payment of salary.Apr. 30 Debit Accounts Payable $379Credit Cash $379To record payment on account.Explanation:a) Data and Analysis:Apr. 1 Cash $22,770 Common Stock $22,770Apr. 2 Rent Expense $1,138 Cash $1,138Apr. 3 Supplies $1,644 Cash $1,644Apr. 10 Accounts Receivable $2,403 Service Revenue $2,403Apr. 11 Cash $885 Deferred Revenue $885Apr. 20 Cash $3,542 Service Revenue $3,542Apr. 30 Salaries $1,896 Cash $1,896Apr. 30 Accounts Payable $379 Cash $379...