Towne Architects incorporated as licensed architects on April 1, 2012. During th

Question

Towne Architects incorporated as licensed architects on April 1, 2012. During
the first month of the operation of the business, these events and transactions occurred:
Apr. 1 Stockholders invested $18,000 cash in exchange for common
stock of the corporation.
1 Hired a secretary-receptionist at a salary of $375 per week,
payable monthly.
2 Paid office rent for the month $900.
3 Purchased architectural supplies on account from Spring Green
Company $1,300.
10 Completed blueprints on a carport and billed client $1,900 for
services.
11 Received $700 cash advance from J. Madison to design a new
home.
20 Received $2,800 cash for services completed and delivered to
M. Svetlana.
30 Paid secretary-receptionist for the month $1,500.
30 Paid $300 Spring Green Company for accounts payable due.
The company uses these accounts: Cash, Accounts Receivable, Supplies, Accounts Payable,
Unearned Service Revenue, Common Stock, Service Revenue, Salaries and Wages Expense,
and Rent Expense

Explanation / Answer

4/1 DR Cash 18,000 CR Common Stock 18,000 4/2 DR Rent expense 900 CR Cash 900 4/3 DR Supplies 1,300 CR Accounts Payable 1,300 4/10 DR Accounts Receivable 1,900 CR Service Revenue 1,900 4/11 DR Cash 700 CR Unearned Service revenue 700 4/20 DR Cash 2,800 CR Service Revenue 2,800 4/30 DR Salaries Expense 1,500 CR Cash 1,500 4/30 DR Accounts Payable 300 CR Cash 300 Trial Balance DR CR Cash 18,800 Accounts Rec 1,900 Supplies 1,300 Salaries Expense 1,500 Rent expense 900 Accounts Payable 1,000 Unearned Service Rev 700 Common Stock 18,000 Service Revenue 4,700 Totals 24,400 24,400

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