May 1 Stockholders invested $23,600 cash in exchange for common stock. 2 Hired a
ID: 2492956 • Letter: M
Question
May 1 Stockholders invested $23,600 cash in exchange for common stock. 2 Hired a secretary-receptionist at a salary of $1,300 per month. 3 Purchased $1,890 of supplies on account from Vincent Supply Company. 7 Paid office rent of $900 cash for the month. 11 Completed a tax assignment and billed client $3,800 for services performed. 12 Received $3,140 advance on a management consulting engagement. 17 Received cash of $1,140 for services performed for Orville Co. 31 Paid secretary-receptionist $1,300 salary for the month. 31 Paid 52% of balance due Vincent Supply Company. Julia uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No. 311 Common Stock, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense. Journalize the transactions. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the 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.) Post to the ledger accounts. (Post the entries into ledger in the order displayed in Part 1.)Explanation / Answer
Cash No. 101 Date Account Titles and Explanation Ref. Debit Credit Date Explanation Ref Debit Credit Balance May 1 Cash $23,600 1-May Common stock 23600 23600 Common stock $23,600 7-May Rent Expense 900 22700 (Issued shares of stock for cash) 12-May Unearned Service Revenue 3140 25840 May 2 no entry required 17-May Accounts Receivable 1140 26980 31-May Salaries and wages expense 1300 25680 May 3 Supplies $ 1,890 31-May Accounts Payable 982.8 24697.20 Debit Accounts Payable $ 1,890 (Purchased supplies on account) Accounts Receivable No. 112 May 7 Rent expense $ 900 Date Explanation Ref Debit Credit Balance cash $ 900 11-May Service Revenue 3800 3800 (Paid office rent) 17-May Cash 1140 2660 Debit May 11 Accounts Receivable $ 3,800 Service Revenue $ 3,800 Supplies No. 126 (Billed client for services provided) Date Explanation Ref Debit Credit Balance May 12 cash $ 3,140 3-May Accounts Payable 1890 1890 Debit Unearned service revenue $ 3,140 (Received cash for future services) Accounts Payable No. 201 May 17 Cash $ 1,140 Date Explanation Ref Debit Credit Balance Accounts Receivable $ 1,140 3-May Supplies 1890 1890 (Received cash for services provided) 31-May Cash 982.8 907.2 Credit May 31 Salaries and wages expense 1300 Cash 1300 Unearned Service Revenue No. 209 (Paid salaries) Date Explanation Ref Debit Credit Balance May 31 Accounts Payable $982.80 12-May Cash 3140 3140 Credit Cash $982.80 (Paid creditor on account) Common Stock No. 311 Date Explanation Ref Debit Credit Balance 1-May Cash 23600 23600 Credit Service Revenue No. 400 Date Explanation Ref Debit Credit Balance 11-May Accounts Receivable 3800 3800 Credit Salaries and Wages Expense No. 726 Date Explanation Ref Debit Credit Balance 31-May Cash 1300 1300 Debit Rent Expense No. 729 Date Explanation Ref Debit Credit Balance 7-May Cash 900 900 Debit