Reference no: EM131785815
Problem - F.L. Wright Architects incorporated as licensed architects on April 1, 2007. During the first month of the operation of the business, these events and transactions occurred:
Apr. 1 Stockholders invested $ 14,000 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 $ 1000.
10 Completed blueprints on a carport and billed client $ 1,100 for services.
11 Received $ 500 cash advance from J. Madison to design a new home.
20 Received $ 2,300 cash for services completed and delivered to M. Svetlana.
30 Paid secretary-receptionist for the month $ 1,500.
30 Paid $ 100 to Spring Green Company for accounts payable due.
The company uses these accounts: Cash, Accounts Receivable, Supplies, Accounts Payable, Unearned Revenue, Common Stock, Service Revenue, Salaries Expense, and Rent Expense.
Instructions
(a) Journalize the transactions, including explanations.
(b) Post to the ledger T accounts.
(c) Prepare a trial balance on April 30, 2007.