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Karla Tanner opened a Web consulting business called Linkworks and completed the following transactions in its first month of operations. April 1 April 2
Karla Tanner opened a Web consulting business called Linkworks and completed the following transactions in its first month of operations. April 1 April 2 April 3 Tanner invested $115,000 cash along with office equipment valued at $27,600 in the company in exchange for common stock. The company prepaid $7,200 cash for 12 months' rent for office space. Hint: Debit Prepaid Rent for $7,200. The company made credit purchases for $13,800 in office equipment and $2,760 in office supplies. Payment is due within 10 days. April 61 The company completed services for a client and immediately received $2,000 cash. April 9 The company completed a $9,200 project for a client, who must pay within 30 days. April 13. The company paid $16,560 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 $7,360 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. The company paid a $6,200 cash dividend. April 28 April 29 The company purchased $920 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.
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General Journal Entries Date Account Debit Credit April 1 Cash 101 115000 Office Equipment 163 27600 Common Stock 307 142600 April 2 Prepaid Rent 131 ...Get Instant Access to Expert-Tailored Solutions
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