Problem 2-3A

Preparing and posting journal entries; preparing a trial balance

Kaseb Nawar opens a web consulting business called Meshreki Consultants and completes the following transactions in March.

March 1 Nawar invested $150,000 cash along with $22,000 in office equipment in the company.

2 The company prepaid $6,000 cash for six months rent for an office. (Hint: Debit Prepaid Rent for $6,000.)

3 The company made credit purchases of office equipment for $3,000 and office supplies for $1,200. 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 $7,500 project for a client, who must pay within 30 days.

12 The company paid $4,200 cash to settle the account payable created on March 3.

19 The company paid $5,000 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $5,000.)

22 The company received $3,500 cash as partial payment for the work completed on March 9.

25 The company completed work for another client for $3,820 on credit.

29 Nawar withdrew $5,100 cash from the company for personal use.

30 The company purchased $600 of additional office supplies on credit.

31 The company paid $500 cash for this months utility bill.

Required

1. Prepare general journal entries to record these transactions (use the following account titles).

Their account numbers are in parentheses (use the balance column format): Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); K. Nawar, Capital (301); K. Nawar, Withdrawals (302); Services Revenue (403); and Utilities Expense (690).

Problem 2-4B

Recording transactions; posting to ledger; preparing a trial balance

Ahmed Nadim Consulting completed the following transactions during June.

a. Ahmed Nadim, the owner, invested $35,000 cash along with office equipment valued at $11,000 in the new company.

b. The company purchased land valued at $7,500 and a building valued at $40,000. The purchase is paid with $15,000 cash and a long-term note payable for $32,500.

c. The company purchased $500 of office supplies on credit.

d. A. Nadim invested his personal automobile in the company. The automobile has a value of $8,000 and is to be used exclusively in the business.

e. The company purchased $1,200 of additional office equipment on credit.

f. The company paid $1,000 cash salary to an assistant.

g. The company provided services to a client and collected $3,200 cash.

h. The company paid $540 cash for this months utilities.

i. The company paid $500 cash to settle the payable created in transaction c.

j. The company purchased $3,400 of new office equipment by paying $3,400 cash.

k. The company completed $4,200 of services for a client, who must pay within 30 days.

l. The company paid $1,000 cash salary to an assistant.

m. The company received $2,200 cash in partial payment on the receivable created in transaction k.

n. A. Nadim withdrew $1,100 cash from the company for personal use.

Required

1. Prepare general journal entries to record these transactions (use account titles listed in part 2).

Their account numbers are in parentheses (use the balance column format): Cash (101); Accounts Receivable (106); Office Supplies (108); Office Equipment (163); Automobiles (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); A. Nadim, Capital (301); A. Nadim, Withdrawals (302); Fees Earned (402); Salaries Expense (601); and Utilities Expense (602).