Question: Diana Mark is the president of ServicePro Inc a company

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.
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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