Chapter 2, Problem 2.18E

Use the following information to answer Exercises E2-18 and E2-19.

The following transactions occurred for Wilson Technology Solutions:

May 1	The business received cash of $85,000 and issued common stock to Zack Wilson.
2	Purchased office supplies on account. $550.
4	Paid $57,000 cash for building and land. The building had a fair market value of $48,000.
6	Performed services for customers and received cash, $3,600.
9	Paid $450 on accounts payable.
17	Performed services for customers on account, $3,400.
19	Paid rent expense for the month, $1,400.
20	Received $1,300 from customers for services to be performed next month.
21	Paid $300 for advertising in next month’s IT Technology magazine.
23	Received $2,600 cash on account from a customer.
31	Incurred and paid salaries, $1,200.

Analyzing and journalizing transactions

Journalize the transactions of Wilson Technology Solutions. Include an explanation with each journal entry. Use the following accounts: Cash; Accounts Receivable; Office Supplies; Prepaid Advertising; Building; Land; Accounts Payable; Unearned Revenue; Common Stock; Service Revenue; Rent Expense; Salaries Expense.