Question

Architectural Design and Associates, Inc., began business on May 1, 2011. The following transactions were entered into by the firm during its first two months of business, May and June:
May 1 Common stock was issued to investors in the amount of $275,000.
1 Architectural Design signed a long-term note with 1st Regional Bank for $65,000.
9 The company purchased an office building with cash for $130,500.
13 Equipment was purchased on account for $35,000.
20 Supplies worth $3,500 were purchased with cash.
27 Architectural Design paid for equipment that was purchased on May 13.
30 The company purchased a two-year insurance policy that began on June 1 with cash for $4,800.
30 The city utility bill for $675 was received by Architectural Design. The utility bill is always due the 15th of the following month and will be paid then.
June 1 Architectural Design purchased some inventory on account for $50,000.
3 The company purchased some advertising in a local newspaper and on a local radio station for $5,000 cash.
15 May’s utility bill for $675 was paid. (Note that the bill was recorded as a payable in May.)
30 June salaries of $12,500 were owed to employees who started during the month.
Salaries are always paid the last day of the month earned.
30 Architectural Design earned service revenues of $60,000 for the month, of which $15,000 were on account.
30 Architectural Design received the city utility bill for $625.

Requirements
1. Give the journal entry for each transaction.
2. Post each transaction to T-accounts.
3. Prepare an unadjusted trial balance.



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  • CreatedSeptember 01, 2014
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