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$1$: Transactions

January $2$: The owners invested $$400,000($the par value of the stock$)$ into the business and acquired $40,000$ shares of common stock in return.

January $15$: Richard bought an office building in the amount of $$150,000.$ The company took out a long$-$term note from the bank to finance the purchase.

February $12$: Richard billed clients for $$50,000$ of services performed.

March $1$: Richard took out a two$-$year insurance policy, which it paid cash for in the amount of $$21,600.$

March $10$: Richard collected $$24,000$ from clients toward the outstanding accounts receivable balance.

May $13$: Richard received cash payments totaling $$240,000$ for legal services$-$ $$26,000$ was for services previously billed to customers on February $12$ and the remainder was for services provided in May not yet recorded.

June $10$: Richard purchased office supplies in the amount of $$55,000,$ all on credit.

July $15$: Richard paid wages of $$24,000$ in cash to office staff workers.

August $8$: Richard paid off the $$55,000$ balance owed to a supplier for the purchase made on June $10.$

September $3$: Richard purchased $$10,000$ of office supplies in cash.

September $20$: The company paid $$13,000$ cash for utilities.

October $1$: Richard paid wages in the amount of $$22,000$ to office workers.

December $1$: Richard received cash payments from clients in the amount of $$300,000$ for services to be performed in the upcoming months.

December $31$: Richard declared and paid a $$15,000$ dividend.

Chart of Accounts

$\backslash$table$[[$Group$,$Account #$,$Account Title$],[100$: Assets$],[,101,$Cash$],[,102,$Accounts Receivable$],[,103,$Office Supplies$],[,104,$Prepaid Insurance$],[,110,$Building$],[,112,$Accumulated Depreciation$-$Building$],[200$: Liabilities$],[,201,$Accounts Payable$],[,202,$Deferred Service Revenue$],[,203,$Wages Payable$],[,210,$Interest Payable$],[,220,$Notes Payable$],[300$: Stockholders' Equity$],[,301,$Common Stock$],[,310,$Retained Earnings$],[,320,$Dividends$],[400$: Revenues$],[,401,$Service Revenue$],[500$: Expenses$],[,501,$Wage Expense$],[,502,$Utilities Expense$],[,503,$Selling Expense$],[,504,$Administrative Expense$],[,505,$Insurance Expense$],[,506,$Supplies Expense$],[,510,$Depreciation Expense$-$Building$],[,520,$Interest Expense$],[600$: Other$],[,601,$Income Summary$]]$

Richard and Sons' Law Offices opened on January $1,2022.$ During the first year of business, the company had the following transactions:

${?}^1($Click the icon to view the transactions.$)$

as follows:

${?}^2($Click the icon to view the chart of accounts.$)$

Read the requirements ${?}^3.$

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Click the icon to see the Worked Solution.

Requirement a$.$ Journalize the transactions for the year. Omit explanations. $($Record debits first, then credits. Exclude explanations from any journal entries.$)$

January $2$: The owners invested $$400,000($the par value of the stock$)$ into the business and acquired $40,000$ shares of common stock in return.

January $15$: Richard bought an office building in the amount of $$150,000.$ The company took out a long$-$term note from the bank to finance the purchase.

$\backslash$table$[[,$January $15],[$Account$,],[(5),],[(6),],[(7),],[(8),]]$

February $12$: Richard billed clients for $$50,000$ of services performed.

$\backslash$table$[[,$February $12],[$Account$,],[(9),],[(10),],[(11),],[(12),]]$

March $1$: Richard took out a two$-$year insurance policy, which it paid cash for in the amount of $$21,600.$

$\backslash$table$[[$Account$,$March $1],[],[(13),],[(14),],[(15),],[(16),]]$

March $10$: Richard collected $$24,000$ from clients toward the outstanding accounts receivable balance.

$10/18/24,9$:$43$ AM

c$4$

May $13$: Richard received cash payments totaling $$240,000$ for legal services$-$ $$26,000$ was for services previously billed to customers on February $12$ and the remainder was for services provided in May not yet recorded.

June $10$: Richard purchased office supplies in the amount of $$55,000,$ all on credit.

$\backslash$table$[[$Account$,$June $10],[,,],[(25),,,],[(26),,,],[(27),,,],[(28),,,]]$

July $15$: Richard paid wages of $$24,000$ in cash to office staff workers.

$\backslash$table$[[,$July $15],[(29),],[,],[(30),],[(31),],[(32),]]$

August $8$: Richard paid off the $$55,000$ balance owed to a supplier for the purchase made on June $10.$

$\backslash$table$[[$Account$,$August $8],[,],[(33),],[(34),],[(35),],[(36),]]$

September $3$: Richard purchased

$18/24,9$:$43$ AM

c$4$