Ayala Architects incorporated as licensed architects on April 1, 2017. During the first month of the operation of the business, these events and transactions occurred: Apr.
1 Stockholders invested $22,770 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $474 per week, payable monthly.
2 Paid office rent for the month $1,138.
3 Purchased architectural supplies on account from Burmingham Company $1,644.
10 Completed blueprints on a carport and billed client $2,403 for services.
11 Received $885 cash advance from M. Jason to design a new home.
20 Received $3,542 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $1,896.
30 Paid $379 to Burmingham Company for accounts payable due.

Required:
Journalize the transactions.

Ayala Architects

Journal Entries:

Apr. 1 Debit Cash $22,770

Credit Common Stock $22,770

To record common stock for cash.

Apr. 2 Debit Rent Expense $1,138

Credit Cash $1,138

To record rent expense paid for cash.

Apr. 3 Debit Supplies $1,644

Credit Cash $1,644

To record Supplies paid for cash.

Apr. 10 Debit Accounts Receivable $2,403

Credit Service Revenue $2,403

To record services rendered on account.

Apr. 11 Debit Cash $885

Credit Deferred Revenue $885

To record cash receipt for services not yet rendered.

Apr. 20 Debit Cash $3,542

Credit Service Revenue $3,542

To record cash received for services rendered.

Apr. 30 Debit Salaries $1,896

Credit Cash $1,896

To record payment of salary.

Apr. 30 Debit Accounts Payable $379

Credit Cash $379

To record payment on account.

Explanation:

a) Data and Analysis:

Apr. 1 Cash $22,770 Common Stock $22,770

Apr. 2 Rent Expense $1,138 Cash $1,138

Apr. 3 Supplies $1,644 Cash $1,644

Apr. 10 Accounts Receivable $2,403 Service Revenue $2,403

Apr. 11 Cash $885 Deferred Revenue $885

Apr. 20 Cash $3,542 Service Revenue $3,542

Apr. 30 Salaries $1,896 Cash $1,896

Apr. 30 Accounts Payable $379 Cash $379

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