Ayala Architects incorporated as licensed architects on April 1, 2017. During th
ID: 2338928 • Letter: A
Question
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: Stockholders invested $ 20,700 cash in exchange for common stock of the corporation. 1 Apr. 1 Hired a secretary-receptionist at a salary of $431 per week, payable monthly. 2 Paid office rent for the month $1,035. 3 Purchased architectural supplies on account from Burmingham Company $ 1,495 10 Completed blueprints on a carport and billed client $ 2,185 for services. 11 Received $ 805 cash advance from M. Jason to design a new home. 20 Received $ 3,220 cash for services completed and delivered to S. Melvin. 30 Paid secretary-receptionist for the month $ 1,724 urmingham Company for accounts payable due.Explanation / Answer
Ayala Architects
Cash
Accounts Receivable
Debit
Credit
Debit
Credit
Date
Description
Amount
Date
Description
Amount
Date
Description
Amount
Date
Description
Amount
1-Apr-17
Common Stock
$20,700
2-Apr-17
Rent Expense
$1,035
10-Apr-17
Service Revenue
$2,185
11-Apr-17
Unearned Revenue
$805
30-Apr-17
Ending Balance
$2,185
20 Apr, 17
Service Revenue
$3,220
30-Apr-17
Salary Expense
$1,724
$2,185
$2,185
30-Apr
Accounts Payable
$345
30-Apr-17
Ending Balance
21,621
$24,725
$24,725
Unearned Revenue
Service Revenue
Debit
Credit
Debit
Credit
Date
Description
Amount
Date
Description
Amount
Date
Description
Amount
Date
Description
Amount
10-Apr-17
Cash
$805
10-Apr-17
Accounts Receivable
$2,185
30-Apr-17
Ending Balance
$805
$805
20-Apr-17
Cash
$3,220
30-Apr-17
Ending Balance
$5,405
$5,405
Supplies
Accounts Payable
Debit
Credit
Debit
Credit
Date
Description
Amount
Date
Description
Amount
Date
Description
Amount
Date
Description
Amount
3-Apr-17
Accounts Payable
$1,495
30-Apr-17
Ending Balance
$1,495
30-Apr-17
Cash
$345
3-Apr-17
Supplies
$1,495
$1,495
$1,495
30-Apr-17
Ending balance
$1,150
$1,150
$1,150
Common Stock
Salaries and Wages Expense
Debit
Credit
Debit
Credit
Date
Description
Amount
Date
Description
Amount
Date
Description
Amount
Date
Description
Amount
1-Apr-17
Cash
$20,700
30-Apr-17
Cash
$1,724
30-Apr-17
Ending Balance
$1,724
30-Apr-17
Ending Balance
$20,700
$1,724
$1,724
$20,700
$20,700
Rent Expense
Debit
Credit
Date
Description
Amount
Date
Description
Amount
2-Apr-17
Cash
$1,035
30-Apr-17
Ending Balance
$1,035
$1,035
$1,035
Trial Balance –
Ayala Architects
Trial Balance as on April 30, 2017
Account Titles
Debit
Credit
Cash
$21,621
Accounts Receivable
$2,185
Supplies
$1,495
Accounts Payable
$1,150
Unearned Service Revenue
$805
Service Revenue
$5,405
Common Stock
$20,700
Salaries and Wages Expense
$1,724
Rent Expense
$1,035
Total
$28,060
$28,060
Cash
Accounts Receivable
Debit
Credit
Debit
Credit
Date
Description
Amount
Date
Description
Amount
Date
Description
Amount
Date
Description
Amount
1-Apr-17
Common Stock
$20,700
2-Apr-17
Rent Expense
$1,035
10-Apr-17
Service Revenue
$2,185
11-Apr-17
Unearned Revenue
$805
30-Apr-17
Ending Balance
$2,185
20 Apr, 17
Service Revenue
$3,220
30-Apr-17
Salary Expense
$1,724
$2,185
$2,185
30-Apr
Accounts Payable
$345
30-Apr-17
Ending Balance
21,621
$24,725
$24,725
Unearned Revenue
Service Revenue
Debit
Credit
Debit
Credit
Date
Description
Amount
Date
Description
Amount
Date
Description
Amount
Date
Description
Amount
10-Apr-17
Cash
$805
10-Apr-17
Accounts Receivable
$2,185
30-Apr-17
Ending Balance
$805
$805
20-Apr-17
Cash
$3,220
30-Apr-17
Ending Balance
$5,405
$5,405
Supplies
Accounts Payable
Debit
Credit
Debit
Credit
Date
Description
Amount
Date
Description
Amount
Date
Description
Amount
Date
Description
Amount
3-Apr-17
Accounts Payable
$1,495
30-Apr-17
Ending Balance
$1,495
30-Apr-17
Cash
$345
3-Apr-17
Supplies
$1,495
$1,495
$1,495
30-Apr-17
Ending balance
$1,150
$1,150
$1,150
Common Stock
Salaries and Wages Expense
Debit
Credit
Debit
Credit
Date
Description
Amount
Date
Description
Amount
Date
Description
Amount
Date
Description
Amount
1-Apr-17
Cash
$20,700
30-Apr-17
Cash
$1,724
30-Apr-17
Ending Balance
$1,724
30-Apr-17
Ending Balance
$20,700
$1,724
$1,724
$20,700
$20,700
Rent Expense
Debit
Credit
Date
Description
Amount
Date
Description
Amount
2-Apr-17
Cash
$1,035
30-Apr-17
Ending Balance
$1,035
$1,035
$1,035
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