Diana Mark is the president of TempEmp, Inc., a company that provides temporary employees for not-for-profit companies. TempEmp has been operating for five years; its revenues have increased each year. You have been hired to help Diana in analyzing the following transactions for the first two weeks of April 2014:
April 2 ... Purchased office supplies for $500 on account.
April 5 ... Billed the local United Way office $1,950 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. Purchased new equipment for the office costing $2,300 cash.
April 9...Paid employee wages of $1,200, which were incurred in April. Received $1,000 on April 10...account from the local United Way office billed on April 5.
April 11...Purchased land as the site of a future office for $10,000. Paid $2,000 down and signed a note payable for the balance.
April 13...Issued 2,000 additional shares 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 telephone bill for $245 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), shareholders' equity (SE), revenue (R), or expense (E).