Answered step by step
Verified Expert Solution
Question
1 Approved Answer
It says that there is missing information. Please look over this to find what I may have missed. Thank you! Karla Tanner opened a Web
It says that there is missing information. Please look over this to find what I may have missed. Thank you!
Karla Tanner opened a Web consulting business called Linkworks and completed the following transactions in its first month of operations. April 1 Tanner invested $135,000 cash along with office equipment valued at $32,400 in the company in exchange for common stock. April 2 The company prepaid \$7,200 cash for 12 months' rent for office space. Hint: Debit Prepaid Rent for $7,200. April 3 The company made credit purchases for $16,200 in office equipment and $3,240 in office supplies. Payment is due within 10 days. April 6 The company completed services for a client and immediately received $2,000 cash. April 9 The company completed a $10,800 project for a client, who must pay within 30 days. April 13 The company paid $19,440 cash to settle the account payable created on April 3 . April 19 The company paid $6,000 cash for the premium on a 12-month prepaid insurance policy. Hint: Debit Prepaid Insurance for $6,000. April 22 The company received $8,640 cash as partial payment for the work completed on April 9 . April 25 The company completed work for another client for $2,640 on credit. April 28 The company paid a $6,200 cash dividend. April 29 The company purchased $1,080 of additional office supplies on credit. April 30 The company paid $700 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 April 30. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable Office Sundies (124): Prepaid Insurance (128): Prepaid Rent (131): Office Eauidment (163): Accounts Pavable (201); C kequirea 1 kequireaStep 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