Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please write correct answer only in required 1, 2, & 3 in the same format for easy read. Karla Tanner opened a Web consulting business
Please write correct answer only in required 1, 2, & 3 in the same format for easy read.
Karla Tanner opened a Web consulting business called Linkworks and completed the following transactions in Its first month of operations. April 1 Tanner invested $150, cash along with office equipment valued at $36,0 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 $7,20e. April 3 The company made credit purchases for $18, 0 in office equipment and $3, 6e in office supplies. Payment is due within 10 days. April 6 The company completed services for a client and immediately received $2,0 cash. April 9 The company completed a $12, project for a client, who must pay within 30 days. April 13 The company paid $21,6 cash to settle the account payable created on April 3. April 19 The company paid $6,60 cash for the premium on a 12-month prepaid insurance policy. Hint: Debit prepaid Insurance for $6,001. April 22 The company received $9,60 cash as partial payment for the work completed on April 9. April 25 The company completed work for another client for $2,646 on credit. April 28 The company paid a $6,200 cash dividend. April 29 The company purchased $1,20 of additional office supplies on credit. April 30 The company paid $700 cash for this month's utility bill. 1. Prepare general journal entrles to record these transactlons using the following titles: Cash (101); Accounts Recelvable (106); Office Supplies (124); Prepald Insurance (128); Prepald Rent (131); Office Equipment (163); Accounts Payable (201); Common Stock (307); Dividends (319); Services Revenue (403); and Utilltles Expense (690). 2. Post the journal entrles from part 1 to the ledger accounts. 3. Prepare a trlal balance as of April 30 . 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). Journal entry worksheet Tanner invested $150,000 cash along with office equipment valued at $36,000 in the company in exchange for common stock. Note: Enter debits before credits. Post the journal entries from part 1 to the ledger accounts. Prepare a trial balance as of April 30Step 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