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Homework answers / question archive / Judi Dench is a licensed architect
Judi Dench is a licensed architect. During the first month of the operation of her company, Judi Dench, Inc., the following events and transactions occurred.
April
1 - Stockholders invested $25,000 cash in exchange for common stock.
1 - Hired a secretary-receptionist at a salary of $300 per week payable monthly.
2 - Paid office rent for the month $800.
3 - Purchased architectural supplies on account from Halo Company $1,500.
10 - Completed blueprints on a carport and billed client $900 for services.
11 - Received $500 cash advance from R.Welk for the design of a new home.
20 - Received $1,500 cash for services completed and delivered to P. Donahue.
30 - Paid secretary-receptionist for the month $1,500.
30 - Paid $600 to Halo Company for accounts payable due.
Judi uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 205 Unearned Revenue, No. 311 Common Stock, No. 400 Service Revenue, No. 726 Salaries Expense, and No. 729 Rent Expense.
Instructions (Please complete using Excel):
(a) Journalize the transactions.
(b) Post to the ledger accounts.
(c) Prepare a trial balance on April 30, 2006.
Please see the attached file.
1 Journal entries are given on the first sheet for each transaction with a brief explanation. Please note that there will not be any accounting entry fore mere hiring of a secretary on the 1st April.There is no transaction of receipt or payment or exchange of either money or money's worth between the business and the secretary. Please note that the Cash advance from P.Welk of $500 on April 11 is not a service revenue as service is not performed at that date.
2 Ledger accounts are prepared on sheet No. 2 with account numbers and full details of each account recorded and properly balanced.
3 The trial balance as of April 30 is given on sheet No 3. The trial balance is the list of debit and credit balances for the period of one month ended 30th April. It is the proof of correctness of the book keeping process and agreement of ledger account balances.
