Question

Novak Architects incorporated as licensed architects on April 1, 2022. During the first month of the operation of the business, these events and transactions occurred:

Apr. 1		Stockholders invested $18,270 cash in exchange for common stock of the corporation.
1		Hired a secretary-receptionist at a salary of $381 per week, payable monthly.
2		Paid office rent for the month $914.
3		Purchased architectural supplies on account from Burmingham Company $1,320.
10		Completed blueprints on a carport and billed client $1,929 for services.
11		Received $711 cash advance from M. Jason to design a new home.
20		Received $2,842 cash for services completed and delivered to S. Melvin.
30		Paid secretary-receptionist for the month $1,524.
30		Paid $305 to Burmingham Company for accounts payable due.

(a)

Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit

Answer 1

Requirement a:

Date	Account title and Explanation	Debit	Credit
Apr 1	Cash	$18,270
	Common stock		$18,270
	[To record issuance of common stock]
1	No entry to hire
2	Rent expense	$914
	Cash		$914
	[to record payment of rent]
3	Supplies	$1,320
	Accounts payable		$1,320
	[To record purchase of supplies on account]
10	Accounts receivable	$1,929
	Service revenue		$1,929
	[To record services performed on account]
11	Cash	$711
	Unearned revenue		$711
	[To record cash received in advance from customer]
20	Cash	$2,842
	Service revenue		$2,842
	[To record cash services]
30	Salaries expense	$1,524
	Cash		$1,524
	[To record payment of salaries]
30	Accounts payable	$305
	Cash		$305
	[To record cash paid for accounts payable]