Flounder 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 $21,420 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $446 per week, payable monthly.
2 Paid office rent for the month $1,071.
3 Purchased architectural supplies on account from Burmingham Company $1,547.
10 Completed blueprints on a carport and billed client $2,261 for services.
11 Received $833 cash advance from M. Jason to design a new home.
20 Received $3,332 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $1,784.
30 Paid $357 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.)

Question

30-09-2020
Business

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Flounder 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 $21,420 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $446 per week, payable monthly.
2 Paid office rent for the month $1,071.
3 Purchased architectural supplies on account from Burmingham Company $1,547.
10 Completed blueprints on a carport and billed client $2,261 for services.
11 Received $833 cash advance from M. Jason to design a new home.
20 Received $3,332 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $1,784.
30 Paid $357 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.)

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Zviko Zviko · Answer 1 · 2020-10-01T03:24:01+02:00

Answer:

Flounder Architects

General Journal

Apr. 1

Cash $21,420 (debit)

Common Stock $21,420 (credit)

Cash Received in Exchange of Common Stock

Apr. 1

Salaries Expense $1,784 (debit)

Salaries Payable $1,784 (credit)

Secretary-receptionist salary due at end of month

Apr. 2

Rent Expenses $1,071 (debit)

Cash $1,071 (credit)

Paid for Rent

Apr. 3

Supplies $1,547 (debit)

Accounts Payable ; Burmingham Company $1,547 (credit)

Architectural supplies purchased on credit

Apr. 10

Accounts Receivable $2,261 (debit)

Service Revenue $2,261 (credit)

Services completed but not yet paid for

Apr. 11

Cash $833 (debit)

Deferred Revenue $833 (credit)

Received cash for services to be completed

Apr. 20

Cash $3,332 (debit)

Service Revenue $3,332 (credit)

Cash received for services completed

Apr. 30

Salaries Payable $1,784 (debit)

Cash $1,784 (credit)

Secretary-receptionist salary paid

Apr. 30

Accounts Payable : Burmingham Company $357 (debit)

Cash $357 (credit)

Partial settlement of account payable

Explanation:

See the Journal Entries and Narrations that i have prepared above.