P2-2B Rosa Perez is a licensed architect. During the first month of the operation of her busi¬

ness, the following events and transactions occurred.

April 1 Stockholders invested $30,000 cash in exchange for common stock.

1 Hired a secretary-receptionist at a salary of $500 per week payable monthly.

2 Paid office rent for the month $800.

3 Purchased architectural supplies on account from Halo Company $1,500.

10 Completed blueprints on a carport and billed client $1,200 for services.

11 Received $500 cash advance from R. Welk for the design of a new home.

20 Received $1,500 cash for services completed and delivered to P. Donahue.

30 Paid secretary-receptionist for the month $2,000.

30 Paid $600 to Halo Company for accounts payable due.

Rosa uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 205 Unearned Revenue, No. 311 Common Stock, No.

400 Service Revenue, No. 726 Salaries Expense, and No. 729 Rent Expense.

Instructions

(a) Journalize the transactions.

(b) Post to the ledger accounts.

(c) Prepare a trial balance on April 30,2008.

P2-3B Slocombe Services was formed on May 1,2008. The following transactions took place during the first month.

Transactions on May 1:

1. Stockholders invested $100,000 cash in the company in exchange for common stock.

2. Hired two employees to work in the warehouse. They will each be paid a salary of $3,000 per month.

3. Signed a 2-year rental agreement on a warehouse; paid $36,000 cash in advance for the first year.

4. Purchased furniture and equipment costing $60,000. A cash payment of $20,000 was made immediately; the remainder will be paid in 6 months.

5. Paid $3,000 cash for a one-year insurance policy on the furniture and equipment.

Transactions during the remainder of the month:

6. Purchased basic office supplies for $1,000 cash.

7. Purchased more office supplies for $3,000 on account.

8. Total revenues earned were $30,000—$10,000 cash and $20,000 on account.

9. Paid $800 to suppliers for accounts payable due.

10. Received $5,000 from customers in payment of accounts receivable.

11. Received utility bills in the amount of $400, to be paid next month.

12. Paid the monthly salaries of the two employees, totalling $6,000.

Instructions

(a) Prepare journal entries to record each of the events listed.