"Bob Royce incorporated Royce Consulting, an accounting practice, on May 1, 2014. During the first month of operations, these events and transactions occurred.
The company uses the following chart of accounts: Cash, Accounts Receivable, Supplies, Accounts Payable, Unearned Service Revenue, Common Stock, Service Revenue, Salaries and Wages Expense, and Rent Expense.
Instructions
(a) (b) (c)
Journalize the transactions, including explanations. Post to the ledger T-accounts. Prepare a trial balance on May 31, 2014.
$103,200 $110,400
Apr. 1
4
8 11 12 13 17 20 25
30 30

Stockholders invested $100,000 cash in the business in exchange for com- mon stock. Purchased land costing $250,000 for cash. Purchased advertising in local newspaper for $1,200 on account.
Paid salaries to employees $3,000. Hired park manager at a salary of $3,600 per month, effective May 1. Paid $7,200 for a 1-year insurance policy. Paid $600 cash dividends. Received $6,000 in cash from customers for admission fees. Sold 100 coupon books for $90 each. Each book contains ten coupons that entitle the holder to one admission to the park. (Hint: The revenue should not be recognized until the coupons are used.) Received $7,900 in cash from customers for admission fees. Paid $400 of the balance owed for the advertising purchased on account on April 8.

May 1
2 3 7
11 12 17 31 31

Stockholders invested $100,000 cash in exchange for common stock of the corporation. Hired a secretary-receptionist at a salary of $2,500 per month. Purchased $800 of supplies on account from Pickering Supply Company.

Paid office rent of $1,400 for the month. Completed a tax assignment and billed client $2,500 for services performed. Received $4,200 advance on a management consulting engagement. Received cash of $3,300 for services completed for Woodman Co. Paid secretary-receptionist $2,500 salary for the month. Paid 50% of balance due Pickering Supply Company."