ACC 290 Problem 3-5A



Sunflower Architects incorporated as licensed architects on April 1, 2010. During the first month of the operation of the business, these events and transactions occurred:


















Apr. 1


Stockholders invested $15,000 cash in exchange for common stock of the corporation.




1


Hired a secretary-receptionist at a salary of $375 per week, payable monthly.




2


Paid office rent for the month $900.




3


Purchased architectural supplies on account from Spring Green Company $1,000.




10


Completed blueprints on a carport and billed client $1,500 for services.




11


Received $500 cash advance from J. Madison to design a new home.




20


Received $2,300 cash for services completed and delivered to M. Svetlana.




30


Paid secretary-receptionist for the month $1,500.




30


Paid $300 to Spring Green Company for accounts payable due.














The company uses these accounts: Cash, Accounts Receivable, Supplies, Accounts Payable, Unearned Revenue, Common Stock, Service Revenue, Salaries Expense, and Rent Expense.
Hint: Journalize transactions, post, and prepare a trial balance.









Instructions











(a)


Journalize the transactions, including explanations.








(b)


Post to the ledger T accounts.








(c)


Prepare a trial balance on April 30, 2010.


Cash $15,100

Tot. trial balance $20,000


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Best Answer

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Below are the Journal Entries. You can use these amounts to complete the trial balance and post to the T accounts. Doing this would be too tedious for me. Let me know if you have any more questions. I would love to help you more with this class. Accounting is my passion!

April 1 Stockholders invested $15,000 cash in exchange for common stock of the corporation.
Debit: Cash 15,000
Credit: Common Stock 15,000

1 Hired a secretary-receptionist at a salary of $375 per week, payable monthly.
Not Transaction, thus no entry required.

2 Paid office rent for the month $900.
Debit: Rent Expense 900
Credit: Cash 900

3 Purchased architectural supplies on account from Spring Green Company $1,000.
Debit: Supplies 1,000
Credit: Accounts Payable 1,000

10 Completed blueprints on a carport and billed client $1,500 for services.
Debit: Accounts Receivable
Credit: Service Revenue 1,500

11 Received $500 cash advance from J. Madison to design a new home.
Debit: Cash 500
Cr Unearned Revenue 500

20 Received $2,300 cash for services completed and delivered to M. Svetlana.
Debit: Cash 2,300
Credit: Service Revenue 2,300

30 Paid secretary-receptionist for the month $1,500.
Debit: Salaries Expense 1,500
Credit: Cash 1,500

30 Paid $300 to Spring Green Company for accounts payable due.
Debit: Accounts Payable 300
Credit Cash 300

answered 2 years ago

BSBGrad2007

Answers

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What book are you using?
I have the study guide for Principales and accounting 6 edition ... Same Problem ..
I have a different problem in my book.
3-5A

answered 2 years ago

Treeclimber

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The book we were provided was 5th edition

answered 2 years ago

nmartin761






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