Question

Sarasota Architects incorporated as licensed architects on April 1, 2022. During the first month of the operation of the business, these events and transactions occurred: Apr. 1 Stockholders invested $24,300 cash in exchange for common stock of the corporation. 1 Hired a secretary-receptionist at a salary of $506 per week, payable monthly. 2 Paid office rent for the month $1,215. 3 Purchased architectural supplies on account from Burmingham Company $1,755. 10 Completed blueprints on a carport and billed client $2,565 for services. 11 Received $945 cash advance from M. Jason to design a new home. 20 Received $3,780 cash for services completed and delivered to S. Melvin. 30 Paid secretary-receptionist for the month $2,024. 30 Paid $405 to Burmingham Company for accounts payable due. Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter O 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.) Date Account Titles and Explanation Debit Credit

Answer 1

Journal Entries:

Date	Account Titles and Explanation	Debit	Credit
Apr. 1	Cash	$24,300
	Common Stock		$24,300
	(To record the amount of cash invested into the business)
Apr. 1	No entry for hiring an employee because there is no monetary transaction.
Apr. 2	Office Rent	$1,215
	Cash		$1,215
	(To record the payment of office rent by cash)
Apr. 3	Supplies	$1,755
	Accounts Payable		$1,755
	(To record the purchase of supplies on account)
Apr. 10	Accounts Receivable	$2,565
	Service Revenue		$2,565
	(To record the services provided on account)
Apr. 11	Cash	$945
	Unearned Service Revenue		$945
	(To record the receipt of cash for the services to be provided in future)
Apr. 20	Cash	$3,780
	Accounts Receivable		$3,780
	(To record the collection of cash from the credit services provided)
Apr. 30	Salaries Expense	$2,024
	Cash		$2,024
	(To record the payment of salaries by cash)
Apr. 30	Accounts Payable	$405
	Cash		$405
	(To record the payment of accounts payable due)