Question
Denzel Brooks opened a Web consulting business called Venture Consultants and completes the following transactions in March. March 1 Brooks invested $155,000 cash along with
Denzel Brooks opened a Web consulting business called Venture Consultants and completes the following transactions in March.
March | 1 | Brooks invested $155,000 cash along with $21,000 n office equipment in the company in exchange for common stock. | ||
2 | The company prepaid $9,000 cash for six months' rent for an office. (Hint: Debit Prepaid Rent for $9,000.) | |||
3 | The company made credit purchases of office equipment for $2,600 and office supplies for $1,600. Payment is due within 10 days. | |||
6 | The company completed services for a client and immediately received $5,500 cash. | |||
9 | The company completed a $7,400 project for a client, who must pay within 30 days. | |||
12 | The company paid $4,200 cash to settle the account payable created on March 3. | |||
19 | The company paid $6,000 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $6,000.) | |||
22 | The company received $3,500 cash as partial payment for the work completed on March 9. | |||
25 | The company completed work for another client for $5,290 on credit. | |||
29 | The company paid $5,700 cash in dividends. | |||
30 | The company purchased $1,200 of additional office supplies on credit. | |||
31 | The company paid $900 cash for this month's utility bill. |
Required: 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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started