Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

HOMEWORK NO. 3 (LEDGERS AND TRIAL BALANCE) Preparing and posting journal entries; preparing a trial balance At the beginning of April, Ahmed Khan launched a

image text in transcribed
HOMEWORK NO. 3 (LEDGERS AND TRIAL BALANCE) Preparing and posting journal entries; preparing a trial balance At the beginning of April, Ahmed Khan launched a custom computer solutions company called Softworks. The company had the following transactions during April 1. Ahmed Khan invested $65,000 cash, office equipment with a value of $5,750, and $30,000 of computer equipment in the company. 2. The company purchased land worth $22,000 for an office by paying $5,000 cash and signing a long-term note payable for $17,000 3. The company purchased a portable building with $34,500 cash and moved it onto the land acquired in b. 4. The company paid $5,000 cash for the premium on a two-year insurance policy. 5. The company provided services to a client and immediately collected $4,600 cash. 6. The company purchased $4,500 of additional computer equipment by paying $800 cash and signing a long- term note payable for $3,700. 7. The company completed $4,250 of services for a client. This amount is to be received within 30 days. 8. The company purchased $950 of additional office equipment on credit. 9. The company completed client services for $10,200 on credit 10. The company received a bill for rent of a computer testing device that was used on a recently completed job. The $320 rent cost must be paid within 30 days. 11. The company collected $5,100 cash in partial payment from the client described in transaction i. 12. The company paid $1,800 cash for wages to an assistant 13. The company paid $950 cash to settle the payable created in transaction h. 14. The company paid $608 cash for minor maintenance of the company's computer equipment. 15. H. Kadir withdrew $6,230 cash from the company for personal use. 16. The company paid $1,800 cash for wages to an assistant 17. The company paid $750 cash for advertisements on the web during April. Required 1. Prepare general journal entries to record these transactions (use account titles listed in part 2). 2. Make the following ledger accounts their account numbers are in parentheses (use the balance column format): Cash (101); Accounts Receivable (106); Prepaid Insurance (108): Office Equipment (163): Computer Equipment (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); H. Kadir Capital (301); H. Kadir Withdrawals (302); Fees Earned (402); Wages Expense (601); Computer Rental Expense (602); Advertising Expense (603); and Repairs Expense (604). Post the journal entries from part 1 to the accounts and enter the balance after each posting. 3. Prepare a trial balance as of the end of April. (Hint: Trial balance totals, $141,080)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Apple Blossom Cologne Company Audit Case

Authors: Jack Paul

5th Edition

0072844507, 978-0072844504

More Books

Students also viewed these Accounting questions

Question

A 300N F 30% d 2 m Answered: 1 week ago

Answered: 1 week ago

Question

What is the relationship between humans and nature?

Answered: 1 week ago