Towne Architects was incorporated as licensed architects on April 1, 2012. During the first month...


Towne Architects was incorporated as licensed architects on April 1, 2012. During the first month of the operation of the business, these events and transactions occurred:

Apr. 1Stockholders invested $18,000 cash in exchange for the common stock of the corporation.
Apr. 1Hired a secretary-receptionist at a salary of $375 per week, payable monthly
Apr. 2Paid office rent for the month $900
Apr. 3Purchased architectural supplies on account from Spring Green Company $1,300
Apr. 10Completed blueprints on a carport and billed client $1,900 for services
Apr. 11Received $700 cash advance from J. Madison to design a new home
Apr. 20Received $2,800 cash for services completed and delivered to M. Svetlana
Apr. 30Paid secretary-receptionist for the month $1,500
Apr. 30Paid $300 to Spring Green Company for accounts payable due

(a) Journalize the transactions.

(b) Prepare a trial balance on April 30, 2012.

Trial Balance:

A trial balance can be defined as a financial statement with a list of debit and credit balances of the ledger accounts. The trial balance can be used to check the mathematical accuracy of the financial records.

Answer and Explanation: 1


Towne Architects

Journal entry

DateParticularsDebit ($)Credit ($)
Apr. 1Cash18,000
Common stock 18,000
Apr. 1No journal entry required
Apr. 2Rent expense900
Cash 900
Apr. 3Supplies1,300
Accounts payable 1,300
Apr. 10Accounts receivable1,900
Service revenue 1,900
Apr. 11Cash700
Unearned service revenue 700
Apr. 20Cash2,800
Service revenue 2,800
Apr. 30Salaries and wages expense1,500
Cash 1,500
Apr. 30Accounts payable300
Cash 300


Towne Architects

Trial balance

Apr. 30, 2022

ParticularsDebit ($)Credit ($)
Accounts receivable1,900
Accounts payable 1,000
Unearned service revenue 700
Common stock 18,000
Service revenue 4,700
Salaries and wages expense1,500
Rent expense900

Learn more about this topic:

Post-Closing Trial Balance: Preparation & Purpose


Chapter 4 / Lesson 11

Explore what post-closing trial balance is, see its purpose and the difference from adjusted and unadjusted trial balance, and see examples of post-closing entries.

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