Reference no: EM131802272
Problem - 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: April 1: Stockholders invested $18,000 cash in exchange for common stock of the corporation.
April 1: Hired a secretary-receptionist at a salary of $375 per week, payable monthly.
April 2: Paid office rent for the month $900.
April 3: Purchased architectural supplies on account from Spring Green Company $1,300.
April 10: Completed blueprints on a carport and billed client $1,900 for services.
April 11: Received $700 cash advance from J. Madison to design a new home.
April 20: Received $2,800 cash for services completed and delivered to M. Svetlana.
April 30: Paid secretary-receptionist for the month $1,500.
April 30: Paid $300 to 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.
QUESTIONS:
(1) Journalize the transactions, including explanations.
(2) Post to the ledger T accounts.
(3) Prepare a trial balance on April 30, 2012.