Question

Month of April

Date
April-01	Acquired $55000 to establish the company, $33000 from an initial investment through the issue of common stock to themselves and $22000 from a bank loan by signing a note. The entire note is due in 5 years and has 7 per cent annual interest rate. Interest is payable in cash on March 31 of each year.
April-01	Paid $4200 (represents 3 months) in advance rent for a one-year lease on kitchen space.
April-01	Paid $35000 to purchase a refrigerator. The refrigerator is expected to have a useful life of 5 years and a salvage value of $5000 at the end of 5 years.
April-06	Purchased supplies for $500 for cash.
April-09	Received $700 cash as an advance payment from a client to be served in May.
April-10	Recorded sale to customers. Cash receipts were $700 and invoices for sales on account were $1500.
April-15	Paid $1460 cash for employee semi-monthly salaries.
April-16	Collected $400 from accounts receivable.
April-23	Received monthly utility bills amounting to $340. The bills are to be paid in May.
April-25	Paid advertising expense for advertisements run during April, $260.
April-30	Recorded services to customers . Cash receipts were $1300 and invoices for services on account were $1800.
April-30	Paid $1460 cash for employer salaries

Required:

1. Record the transaction for April in general journal.

2. Open general ledger accounts, using the T-accounts provided, and post the general journal entries to the ledger.

Month of May

Date
May-01	Collected $1900cash from customer accounts receivable
May-02	Purchased supplies on account that cost $360
May-07	Recorded services of catering to customers and cash receipts were $610 and invoices for services on account were $1800
May-08	The catering job was completed that was paid for in advance on April 9
May-10	Paid the utility company for the monthly utility bills that had been received in the previous month, $340
May-15	Paid $1800 cash for employee salaries
May-15	Purchased a one-year insurance policy for $1200 on the refrigerator
May-16	Paid $220 on the account payable that was established when supplies were purchased on May 2.
May-20	Paid a $400cash dividend to the stockholders
May-27	Received monthly utility bills amounting to $360. The bills would be paid in the month of June
May-31	Recorded revenues to customers. Cash receipts were $900, and invoices for sales on account were $1400
May-31	Paid $1800 cash for employee salaries

Required:

1. Record the transactions for May in general journal.

2. Post the transactions into T-accounts created for the month of April.

Answer 1