Reference no: EM132380505

Question

Abramson Financial Services was formed on May 1, 2017. The following events and transactions are from its first month:

May 1 Jacob Abramson invested $42,100 cash and equipment worth $11,950 in the company.

1 Hired one employee to work in the office for a salary of $2,365 per month.

2 Paid $3,355 cash for a one-year insurance policy.

5 Signed a two-year rental agreement on an office and paid $5,180 cash. Half was for the May 2017 rent and the other half was for the final month's rent. (Hint: The portion for the final month is considered prepaid rent.)

8 Purchased additional equipment costing $19,200. A cash payment of $6,300 was made immediately. Signed a note payable for the balance.

9 Purchased supplies for $375 cash.

15 Purchased more supplies for $800 on account.

17 Completed a contract for a client for $2,630 on account.

22 Paid $340 for May's telephone bill.

25 Completed services for a client and immediately collected $1,145.

26 Paid Jacob Abramson $1,480 cash for his personal use.

28 Collected $2,315 from the client billed-on May 17.

30 Paid for the supplies purchased on account on May 15.

30 Paid $40 interest expense on the note payable.

31 Received a cash advance of $360 for services to be completed in June.

31 Paid the employee's monthly salary, $2,365.

Prepare journal entries to record the transactions. (Credit account titles are automatically indented when amount is entered, Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

Post the journal entries to ledger accounts. Use T accounts. (Post entries in the order of journal entries presented in the previous part. If ending balance is 0 enter. 0 on the normal sid for the account.)

Cash