Problem 2-3A Preparing and posting journal entries; preparing a trial balance LO C3, C4, A1, P1, P2 The following information applies to the questions displayed below Denzel Brooks opens a Web consulting business called Venture Consultants and completes the following transactions in March. March 1 Brooks invested $175,000 cash along with $25,000 in office equipment in the company in exchange for common stock. 2 The company prepaid $9,000 cash for six months' rent for an office. (Hint: Debit Prepaid Rent for $9,000.) 3 The company made credit purchases of office equipment for $4,200 and office supplies for $1,000. Payment is due within 10 days. 6 The company completed services for a client and immediately received $7,000 cash. 9 The company completed a $9,900 project for a client, who must pay within 30 days. 12 The company paid $5,200 cash to settle the account payable created on March 3. 19 The company paid $7,700 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $7.70o.) 22 The company received $3,600 cash as partial payment for the work completed on March 9 25 The company completed work for another client for $5,140 on credit. 29 The company paid $6,200 cash in dividends. 30 The company purchased $700 of additional office supplies on credit. 31 The company paid $800 cash for this month's utility bill. Problem 2-3A Part 1 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) View transaction list Journal entry worksheet 12 Brooks invested $175,000 cash along with $25,000 in office equipment in the company in exchange for common stock. Note: Enter debits before credits. Date General Journal Debit Credit Mar 01 Record entry Clear entry View general journal Problem 2-3A Part 2 2. Open the ledger accounts for the account titles referred in part 1 and post the journal entries from part 1 to the ledger accounts. 101: Cash 106: Accounts Receivable Date Debit Credit Balance Date Debit Credit Balance 124: Office Supplies 128: Prepaid Insurance Debit Date Debit Credit Balance Date Credit Balance 131: Prepaid Rent 163: Office Equipment Debit Date Debit Credit Balance Date Credit Balance 201: Accounts Payable Debit 307: Common Stock Date Credit Balance Date Debit Credit Balance 319: Dividends 403: Services Revenue Date Debit Credit Balance Date Debit Credit Balance 690: Utilities Expense Date Debit Credit Balance Problem 2-3A Part 3 3. Prepare a trial balance as of the end of March. VENTURE CONSULTANTS Trial Balance March 31 Debit Credit Totals 0