During the first month of operations, the following transactions occurred for Blossom Inc.: Apr. 1 Invested cash of $8,000 and equipment of $6,500 in the company in exchange for common shares. 1 Hired a secretary-receptionist at a monthly salary of $1,900. 2 Paid office rent for the month, $950. 3 Purchased architectural supplies on account from Halo Ltd., $1,900. 10 Completed blueprints on a carport and billed client $1,500. 13 Received $800 cash advance from a client for the design of a new home. 20 Received $2,500 for services performed for a client. 21 Received $600 from client in partial payment for work completed and billed on April 10. 23 Received April's telephone bill for $135; due May 15. (Hint: Use the Utilities Expense account for telephone services.) 25 Declared and paid $120 of dividends to shareholders. 27 Paid 50% ($950) of the amount owed to Halo Ltd. on account. (see April 3 transaction) 30 Paid secretary-receptionist for the month, $1,900. 30 Paid monthly income tax instalment, $100.
During the first month of operations, the following transactions occurred for Blossom Inc.: Apr. 1 Invested cash of $8,000 and equipment of $6,500 in the company in exchange for common shares. 1 Hired a secretary-receptionist at a monthly salary of $1,900. 2 Paid office rent for the month, $950. 3 Purchased architectural supplies on account from Halo Ltd., $1,900. 10 Completed blueprints on a carport and billed client $1,500. 13 Received $800 cash advance from a client for the design of a new home. 20 Received $2,500 for services performed for a client. 21 Received $600 from client in partial payment for work completed and billed on April 10. 23 Received April's telephone bill for $135; due May 15. (Hint: Use the Utilities Expense account for telephone services.) 25 Declared and paid $120 of dividends to shareholders. 27 Paid 50% ($950) of the amount owed to Halo Ltd. on account. (see April 3 transaction) 30 Paid secretary-receptionist for the month, $1,900. 30 Paid monthly income tax instalment, $100.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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During the first month of operations, the following transactions occurred for Blossoms Inc.:
Transcribed Image Text:During the first month of operations, the following transactions occurred for Blossom Inc.:
Apr.
1
Invested cash of $8,000 and equipment of $6,500 in the company in exchange for common shares.
1
Hired a secretary-receptionist at a monthly salary of $1,900.
2
Paid office rent for the month, $950.
3
Purchased architectural supplies on account from Halo Ltd., $1,900.
10
Completed blueprints on a carport and billed client $1,500.
13
Received $800 cash advance from a client for the design of a new home.
20
Received $2,500 for services performed for a client.
21
Received $600 from client in partial payment for work completed and billed on April 10.
23
Received April's telephone bill f
25
Declared and paid $120 of dividends to shareholders.
27
Paid 50% ($950) of the amount owed to Halo Ltd. on account. (see April 3 transaction)
30
Paid secretary-receptionist for the month, $1,900.
30
Paid monthly income tax instalment, $100.
$135; due May 15. (Hint: Use the Utilities Expense account for telephone services.)
ENG
US
Transcribed Image Text:Journalize the transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the
amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the
amounts. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
(To record investment)
(Hired a secretary-receptionist)
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