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 inb.

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 transactioni.

12.The company paid $1,800 cash for wages to an assistant.

13.The company paid $950 cash to settle the payable created in transactionh.

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 generaljournal entriesto record these transactions (use account titles listed in part 2).

2.Make the followingledger accountstheir 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 trial balanceas of the end of April. (Hint:Trial balance totals, $141,080)