Question
Problem 2-1A Preparing and posting journal entries; preparing a trial balance LO C3, C4, A1, P1, P2 Karla Tanner opens a Web consulting business called
Problem 2-1A Preparing and posting journal entries; preparing a trial balance LO C3, C4, A1, P1, P2
Karla Tanner opens a Web consulting business called Linkworks and completes the following transactions in its first month of operations. |
April 1 | Tanner invests $80,000 cash along with office equipment valued at $26,000 in the company in exchange for common stock. |
2 | The company prepaid $9,000 cash for twelve months rent for office space. (Hint: Debit Prepaid Rent for $9,000.) |
3 | The company made credit purchases for $8,000 in office equipment and $3,600 in office supplies. Payment is due within 10 days. |
6 | The company completed services for a client and immediately received $4,000 cash. |
9 | The company completed a $6,000 project for a client, who must pay within 30 days. |
13 | The company paid $11,600 cash to settle the account payable created on April 3. |
19 | The company paid $2,400 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $2,400.) |
22 | The company received $4,400 cash as partial payment for the work completed on April 9. |
25 | The company completed work for another client for $2,890 on credit. |
28 | The company paid $5,500 cash in dividends. |
29 | The company purchased $600 of additional office supplies on credit. |
30 | The company paid $435 cash for this months 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). |
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