Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Karla Tanner opened a Web consulting business called Linkworks and completed the following transactions in its first month of operations. Apri1 1 Tanner invested $105,000

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Karla Tanner opened a Web consulting business called Linkworks and completed the following transactions in its first month of operations. Apri1 1 Tanner invested $105,000 cash along with office equipment valued at $25,200 in the company. April 2 The company prepaid $7,200 cash for 12 months' rent for office space. Hint: Debit Prepaid Rent for $7,200. Apri1 3 The company made eredit purchases for $12,600 in office equipment and $2,520 in office supplies. Payment is due within 10 days. Apri1-6 The company completed servicen for a client and immediately received $2,000 cash. Apri1 9 the company completed a $8,400 project for a client, who must pay within 30 days. april 13 The company paid $15,120 cash to settle the account payable created on Apri1 3 . Apri1,19. The company paid $6,000 cash for the premium on a 12-nonth prepaid insarance policy. Hint: Debit prepaid Insurance for $6,000. Apri1 22 The company received $6,720 cash an partial payment for the work cospleted on Apri1 9. Apri1 25 The company completed work for another elient for $2,640 on credit. Apri1 28 Tanner withdrew $6,200 eath from the company for pernonal use. Apti1 29 The company purchased $840 of additional office supplies on eredit. April 30 The coofpany paid $700 cash for thin month's utility bili. Required: 1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Recelvable (106); Office Supplies (124); Prepaid insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); K. Tanner, Capital (301); K. Tanner, Withdrawals (302): Services Revenue (403); and Utilties Expense (690), Prepare general journal entries to record these transactions using the following tities: Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); K. Tanner, Capital (301); K. Tanner, Withdrawals (302); Services Revenue (403); and Utilities Expense (690). Journal entry worksheet \begin{tabular}{lllllllll|} \hline & 2 & 3 & 4 & 5 & 6 & 8 & & 12 \end{tabular} Note: Enter debias belore credits. Journal entry worksheet

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

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan

15th edition

978-0133428858, 133428850, 133428702, 978-0133428704

More Books

Students also viewed these Accounting questions