Reference no: EM132963543
Question - AMR is an advertising agency. During the first month of the operation of the business, the following events and transactions occurred.
May 1 Owner invested $40,000 cash in the business.
May 2 Hired a secretary-receptionist at a salary of $800 per week payable monthly.
May 3 Paid office rent for the month $3,100.
May 4 Purchased advertising supplies on account from Smart Company $5,000.
May 12 Provided advertising services and billed customer $7,200.
May 14 Received $4,000 cash advance from the customer for the advertising services that will be provided in June.
May 22 Received $2,100 cash for services completed and delivered to the customer.
May 30 It is noticed that the advertising supplies of $2400 are consumed.
May 30 Paid salary to the secretary-receptionist for the month $3,200.
May 30 Paid $3,400 to Smart Company for accounts payable due
AMR uses the following chart of accounts: No. 101 Cash, No. 113 Accounts Receivable, No. 127 Advertising Supplies, No. 205 Accounts Payable, No. 209 Unearned Service Revenue, No. 301 Owner's Capital, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, No. 729 Rent Expense and No.736 Advertising Supplies Expense
Required - Journalize the transactions.