Question
Denzel Brooks opened a Web consulting business called Venture Consultants and completes the following transactions in March. March1Brooks invested $170,000 cash along with $22,000 n
Denzel Brooks opened a Web consulting business called Venture Consultants and completes the following transactions in March.
March1Brooks invested $170,000 cash along with $22,000 n office equipment in the company in exchange for common stock.
March 2The company prepaid $7,000 cash for six months' rent for an office. (Hint: Debit Prepaid Rent for $7,000.)
March 3 The company made credit purchases of office equipment for$5,400and officesupplies for $1,400. Payment is due within 10 days.
March 6The company completed services for a client and immediately received$3,500cash.
March 9The company completed a $7,300 project for a client, who must pay within 30days.
March 12The company paid $6,800 cash to settle the account payable created on March 3.19The company paid $6,400 cash for the premium on a 12-month insurancepolicy. (Hint: Debit Prepaid Insurance for $6,400.)
March 22The company received $3,600 cash as partial payment for the work completed on March 9.
March 25The company completed work for another client for $3,940 on credit.
March 29The company paid $5,300 cash in dividends.
March30The company purchased $1,900 of additional office supplies on credit.
March 31The company paid $1,500 cash for this month's utility bill.
1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); Common Stock (307); Dividends (319); Services Revenue (403); and Utilities Expense (690).
2. Post the journal entries from part 1 to the ledger accounts.
3. Prepare a trial balance as of the end of March.
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