In this case, you will record the effects of transactions using the accrual method of accounting.

Carl Crow is a licensed architect. During the first month of operation of his business, the events and transactions listed below occurred.

Prepare general journal entries using an Excel spreadsheet to record the transactions listed below for the Carl Crow Co.

Assignment Template – Template attached

Use the following chart of accounts:

  • Cash
  • Accounts receivable
  • Supplies
  • Accounts payable
  • Unearned revenue
  • Carl Crow, capital
  • Service revenue
  • Salaries expense
  • Rent expense

Use the numbers beside each transaction to identify your entries:

  1. Invested $30,000 in cash.
  2. Hired a secretary-receptionist at a salary of $500 per week payable monthly.
  3. Paid office rent of $800 for the month.
  4. Purchased architectural supplies on account from Halo Company for $1,500.
  5. Completed blueprints on a carport and billed client $1,200 for services.
  6. Received $500 cash advance from R. Welk for the design of a new home.
  7. Received $1,500 cash for services completed and delivered to P. Donahue.
  8. Paid the secretary-receptionist $2,000 for the month.
  9. Paid $600 to the Halo Company for accounts payable due.


In an Excel spreadsheet, prepare journal entries 1 through 9. Make sure that the debits equal the credits for each journal entry. Under each journal entry, be sure to include one sentence that explains the transaction.

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