Latinovich Legal Services had the following transactions during its first month of operations:
May 1 Latinovich Legal Services received $20,000 cash and issued common stock to the stockholders.
May 1 Paid the May rent,$5,000.
May 3 Purchased equipment on account for $3,000.
May 5 Purchased supplies for $2,000 on account.
May 8 Performed services for a client and received cash of $11,800.
May 12 Performed services for a client and billed the client $12,200.The client promised to pay within 10 days.
May 15 Paid for the equipment purchased May 3 on account.
May 22 Received payment from a client on account,$12,200.
May 28 Borrowed $10,000,by signing a promissory note,from First National Bank for use in the business.
May 31 Employees were paid $3,000 for working during the current month.
May 31 Received and paid the utility bill of $1,800.
Required: Record the transactions of the business in a journal.Include an explanation for each entry.

Question

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The Answer of Latinovich Legal Services had the following transactions during its first month of operations:
May 1 Latinovich Legal Services received $20,000 cash and issued common stock to the stockholders.
May 1 Paid the May rent,$5,000.
May 3 Purchased equipment on account for $3,000.
May 5 Purchased supplies for $2,000 on account.
May 8 Performed services for a client and received cash of $11,800.
May 12 Performed services for a client and billed the client $12,200.The client promised to pay within 10 days.
May 15 Paid for the equipment purchased May 3 on account.
May 22 Received payment from a client on account,$12,200.
May 28 Borrowed $10,000,by signing a promissory note,from First National Bank for use in the business.
May 31 Employees were paid $3,000 for working during the current month.
May 31 Received and paid the utility bill of $1,800.
Required: Record the transactions of the business in a journal.Include an explanation for each entry.

Latinovich Legal Services Had the Following Transactions During Its First