Journal Entries of President of ServicePro, Inc.
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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 $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.
April 9: Purchased a new computer for the office costing $2,300 cash.
April 10: Paid employee wages of $1,200. Of this amount, $200 had been earned by employees in the prior period and already recorded in the Wages Payable account.
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. Paid $2,000 down and signed a note payable for the balance.
April 13: Issued 2,000 additional shares of stock for $40 per share in anticipation of building a new office.
April 14: Billed Family & Children's Service $2,000 for services rendered this month.
April 15: Received the April telephone bill for $245 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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Hello,
I hope you are doing great. Please find my response attached in the word document. I have done my best to answer your questions to the best of my ability. I hope you find the response excellent. I have attached the classification of each account right next to the account in brackets. Thanks and good luck.
April 2: Purchased office supplies for $500 on account.
Office Supplies (A) 500
Accounts Payable - Office Supplies (L) 500
April 5: Billed the local United Way office $1,950 for ...
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