Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Unearmed SetvIce Expense, and Salaries and Wages Expense. Instructions Journaliz

ID: 2339554 • Letter: U

Question

Unearmed SetvIce Expense, and Salaries and Wages Expense. Instructions Journalize the April transactions. P2-2A Julia Duma ness, Julia Dumars, Inc., the following events and transactions occurred aice ransactions post, P2-2A Julia Dumars is a licensed CPA. During the first month of operations of her prepare a trial balance transactions, post, 4, 6, 7) May 1 Stockholders invested $20,000 cash in exchange for common stock. ired a secretary-receptionist at a salary of $2,000 per month. 3 Purchased $1,500 of supplies on account from Vincent Supply Company 7 Paid office rent of $900 cash for the month. 11 Completed a tax assignment and billed client $2,800 for services performed 12 Received $3,500 advance on a management consulting engagement 17 Received cash of $1,200 for services performed for Orville Co. 3 31 Paid secretary-receptionist $2,000 salary for the month. Paid 40% of balance due Vincent Supply Company. 31 Julia uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable No. 126 Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No.311 Common Stock, No. 400 Service Rent Expense. Instructions (a) Journalize the transactions. Revenue, No. 726 Salaries and Wages Expense, and No. 729 (b) Post to the ledger accounts. ance totals $28,400 (c) Prepare a trial balance on May 31, 2015

Explanation / Answer

Julia Dumars

Journal entries

date

account title & explanation

debit

credit

May-01

cash

20000

common stock

20000

(To record issued of common stock.)

May-02

No entry

May-03

Supplies

1500

account payable

1500

(To record purchase of supply.)

May-07

rent expense

900

cash

900

(To record Rent expense paid.)

May-11

account receivable

2800

service revenue

2800

(To record service performed.)

May-12

Cash

3500

unearned service revenue

3500

(To record advance received from client.)

May-17

Cash

1200

service revenue

1200

(To record service performed.)

May-31

salaries and wages expense

2000

Cash

2000

(To record salaries and wages expense paid.)

May-31

account payable (1500*40%)

600

Cash

600

(To record paid to account payable.)

cash

Date

debit

credit

balance

beg. Bal

0

May-01

20000

20000

May-07

900

19100

May-12

3500

22600

May-17

1200

23800

May-31

2000

21800

May-31

600

21200

End. Bal

21200

Supplies

date

debit

credit

balance

beg. Bal

0

May-03

1500

1500

End. Bal

1500

account receivable

date

debit

credit

balance

beg. Bal

0

May-11

2800

2800

End. Bal

2800

salaries and wages expense

date

debit

credit

balance

beg. Bal

0

May-31

2000

2000

End. Bal

2000

rent expense

date

debit

credit

balance

beg. Bal

0

May-07

900

900

End. Bal

900

account payable

date

debit

credit

balance

beg. Bal

0

May-03

1500

1500

May-31

600

900

End. Bal

900

unearned service revenue

date

debit

credit

balance

beg. Bal

0

May-12

3500

3500

End. Bal

3500

common stock

date

debit

credit

balance

beg. Bal

0

May-01

20000

20000

End. Bal

20000

service revenue

date

debit

credit

balance

beg. Bal

0

May-11

2800

2800

May-17

1200

4000

End. Bal

4000

Julia Dumars

trial balance sheet on May 31, 2015

account title

debit

credit

Cash

21200

Supplies

1500

account receivable

2800

account payable

900

unearned service revenue

3500

common stock

20000

service revenue

4000

salaries and wages expense

2000

rent expense

900

Total

28400

28400

Julia Dumars

Journal entries

date

account title & explanation

debit

credit

May-01

cash

20000

common stock

20000

(To record issued of common stock.)

May-02

No entry

May-03

Supplies

1500

account payable

1500

(To record purchase of supply.)

May-07

rent expense

900

cash

900

(To record Rent expense paid.)

May-11

account receivable

2800

service revenue

2800

(To record service performed.)

May-12

Cash

3500

unearned service revenue

3500

(To record advance received from client.)

May-17

Cash

1200

service revenue

1200

(To record service performed.)

May-31

salaries and wages expense

2000

Cash

2000

(To record salaries and wages expense paid.)

May-31

account payable (1500*40%)

600

Cash

600

(To record paid to account payable.)