Sandro Spina is the president of TemPro Inc., a company that provides temporary employees for not-for- profit companies. TemPro has been operating for five years; its revenues are increasing with each passing year. You have been hired to help Sandro in analyzing the following transactions for the first two weeks of April: April + Purchased office supplies for $ 2,600 on account. 3 Received the April telephone bill for $ 1,950 to be paid in May. = Billed the local United Way $ 23,500 for temporary services provided.

8 Paid $ 3,005 for supplies purchased and recorded on account last period.

8 Placed an advertisement in the local paper for $ 1,400 cash.

9 Purchased a new computer for the office costing $ 2,300 cash.

10 Paid employee wages of $ 11,900. Of this amount, $ 3,800 had been earned and recorded in the wages payable account in the prior period.

11 Received $ 12,500 on account from the local United Way office for services provided on April 5.

12 Purchased land as the site of a future office for $ 50,000. Paid $ 10,000 down and signed a note payable for the balance. The note is due in five years and has an annual interest rate of 10 percent.

13 Issued 3,000 additional shares for cash at $ 45 per share in anticipation of building a new office. 14 Billed Family & Children€™s Service $ 14,500 for services rendered.

Required

1. Prepare a journal entry to record each of the transactions. Be sure to categorize each account as an asset (A), a liability (L), shareholders€™ equity (SE), a revenue (R), or an expense (E).

2. Complete the tabulation below for each of the transactions, indicating the effect (+ for increase and €“ for decrease) of each transaction. The first transaction is provided as an example. (Remember that A = L + SE, R €“ E = NE, and NE affects SE through retained earnings.) Write €œN€ if there is no effect.

Transcribed Image Text:

Statement of Financial Postion Statement of Earnings Shareholders Eqty Revenues Expenses Net Earnings Date Assets Liabilities April 2 +$2,600+$2,600