Question

Diana Mark is the president of ServicePro, Inc., a company that provides temporary employees for not- for- profit companies. ServicePro has been operating for five years; its revenues are increasing with each passing year. You have been hired to help Diana in analyzing the following transactions for the first two weeks of April:
April 2 Purchased office supplies for $ 500 on account.
April 5 Billed the local United Way office $ 3,000 for temporary services provided.
April 8 Paid $ 250 for supplies purchased and recorded on account last period.
April 8 Placed an advertisement in the local paper for $ 400 cash.
April 9 Purchased new equipment for the office costing $ 2,300 cash.
April 10 Paid employee wages of $ 1,200, which were incurred in April.
April 11 Received $ 1,000 on account from the local United Way office billed on April 5.
April 12 Purchased land as the site of a future office for $ 10,000. The land value was appraised as $ 11,000. Paid $ 2,000 down and signed a long- term note payable for the balance.
April 13 Issued 2,000 additional shares of common stock for $ 40 per share in anticipation of building a new office.
April 14 Billed Family & Children’s Services $ 2,000 for services rendered this month.
April 15 Received the April utilities bill for $ 300 to be paid next month.
Required:
For each of the transactions, prepare journal entries. Be sure to categorize each account as an asset (A), liability (L), stockholders’ equity (SE), revenue (R), or expense (E).


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  • CreatedNovember 02, 2015
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