Question

Problem 3-5A

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 $26,910 cash in exchange for common stock of the corporation.
1		Hired a secretary-receptionist at a salary of $561 per week, payable monthly.
2		Paid office rent for the month $1,345.
3		Purchased architectural supplies on account from Burmingham Company $1,943.
10		Completed blueprints on a carport and billed client $2,840 for services.
11		Received $1,046 cash advance from M. Jason to design a new home.
20		Received $4,186 cash for services completed and delivered to S. Melvin.
30		Paid secretary-receptionist for the month $2,244.
30		Paid $448 to Burmingham Company for accounts payable due.

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.)

Post to the ledger T-accounts. (Post entries in the order of journal entries presented in the question.)

Prepare a trial balance on April 30, 2017.

Answer 1

Journal Entries  

Date	Particular	Debit $	Credit$
April 1	Cash a/c                                              ------------Dr	26,910
	To Common Stock a/c		26,910
April 1	No Entry
April 2	Rent expenses a/c                             ------------ Dr	1,345
	To cash a/c		1,345
April 3	Supplies a/c                                         ------------ Dr	1,943
	To Accounts Payables a/c		1,943
April 10	Account Receivables a/c                    -----------Dr	2,840
	To service revenue a/c		2,840
April 11	Cash a/c                                                 ---------- Dr	1,046
	To unearned service revenue a/c		1,046
April 20	Cash a/c                                                 ---------- Dr	4,186
	To service Revenue a/c		4,186
April 30	Salary and wages Expenses a/c          ----------- Dr	2,244
	To cash a/c		2,244
April 30	Accounts Payables a/c                        ------------Dr	448
	To Cash a/c		448

Ledger

Cash a/c

Date	Particular	Amount	Date	Particular	Amount
April 1	To Common stock	26,910	April 2	By Rent Expenses	1,345
April 11	To Unearned service revenue	1,046	April 30	By salary and Wages Expenses	2,244
April 20	To Service revenue	4,186	April 30	By Accounts payables	448
			April 30	By bal c/d	28,105
		32,142			32,142
May 1	To bal b/d	28,105

Common Stock a/c

Date	Particular	Amount	Date	Particular	Amount
April 30	To bal c/d	26,910	April 1	By cash	26,910
		26,910			26,910
			May 1	By bal b/d	26,910

Rent expenses a/c

Date	Particular	Amount	Date	Particular	Amount
April 2	To cash	1,345	April 30	By bal c/d	1,345
		1,345			1,345
May 1	To bal b/d	1,345

Supplies a/c

Date	Particular	Amount	Date	Particular	Amount
April 3	To Accounts Payables	1,943	April 30	By bal c/d	1,943
		1,943			1,943
May 1	To bal b/d	1,943

Accounts Payables a/c

Date	Particular	Amount	Date	Particular	Amount
April 30	To cash	448	April 3	By supplies	1,943
April 30	To bal c/d	1,495
		1,943			1,943
			May 1	By bal b/d	1,495

Account Receivables a/c

Date	Particular	Amount	Date	Particular	Amount
April 10	To service revenue	2,840	April 30	By bal c/d	2,840
		2,840			2,840
May 1	To bal b/d	2,840

Service revenue a/c

Date	Particular	Amount	Date	Particular	Amount
April 30	To bal c/d	7,026	April 10	By Accounts Receivables	2,840
			April 20	By Cash	4,186
		7,026			7,026
			May 1	By bal b/d	7026

Unearned service revenue a/c

Date	Particular	Amount	Date	Particular	Amount
April 30	To bal c/d	1,046	April 11	By cash	1,046
		1,046			1,046
			May 1	By bal b/d	1,046

Salary and wages Expenses a/c

Date	Particular	Amount	Date	Particular	Amount
April 30	To cash	2,244	April 30	By bal c/d	2,244
		2,244			2,244
May 1	To bal b/d	2,244

Trading account

Particular	Debit	Credit
Cash	28,105
Common stock		26,910
Rent expenses	1,345
Supplies	1,943
Accounts Payables		1,495
Accounts Receivables	2,840
Service Revenue		7,026
Unearned service revenue		1,046
Salary and wages expenses	2,244
Total	36,477	36,477