Q 1:

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.

2: The company prepaid $9,000 cash for twelve months' rent for office space.

(Hint:Debit Prepaid Rent for $9,000.)

The company made credit purchases for $8,000 in office equipment and $3,600 in

office supplies. Payment is due within 10 days.

The company completed services for a client and immediately received $4,000 cash.

The company completed a $6,000 project for a client, who must pay within 30 days.

The company paid $11,600 cash to settle the account payable created on April 3.

The company paid $2,400 cash for the premium on a 12-month insurance policy.

(Hint: Debit Prepaid Insurance for $2,400.)

The company received $4,400 cash as partial payment for the work completed on

April 9.3: 6:

9:

13:

19: 22 25 The company completed work for another client for $2,890 on credit.

28 Tanner withdrew $5,500 cash from the company for personal use.

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

30 The company paid $435 cash for this month's utility bill.

Required

1. Prepare general journal entries to record these transactions

2. Open the following ledger accountstheir 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. Tanner, Capital (301); K. Tanner, Withdrawals (302); Services Revenue (403); and

Utilities Expense (690). Post journal entries from part 1 to the ledger accounts and enter the

balance after each posting.

Q2:

Aracel Engineering completed the following transactions in the month of June.

a. Jenna Aracel, the owner, invested $100,000 cash, office equipment with a value of $5,000,

and $60,000 of drafting equipment to launch the company.

b. The company purchased land worth $49,000 for an office by paying $6,300 cash and signing

a long term note payable for $42,700.

c. The company purchased a portable building with $55,000 cash and moved it onto the land

acquired in b.

d. The company paid $3,000 cash for the premium on an 18-month insurance policy.

e. The company completed and delivered a set of plans for a client and collected $6,200 cash.

f. The company purchased $20,000 of additional drafting equipment by paying $9,500 cash

and signing a long-term note payable for $10,500.

g. The company completed $14,000 of engineering services for a client. This amount is to be

received in 30 days.

h. The company purchased $1,150 of additional office equipment on credit.

i. The company completed engineering services for $22,000 on credit.

j. The company received a bill for rent of equipment that was used on a recently completed

job. The $1,333 rent cost must be paid within 30 days.

k. The company collected $7,000 cash in partial payment from the client described in

transaction g.

l. The company paid $1,200 cash for wages to a drafting assistant.

m. The company paid $1,150 cash to settle the account payable created in transaction h.

n. The company paid $925 cash for minor maintenance of its drafting equipment.

o. Jenna Aracel withdrew $9,480 cash from the company for personal use.

p. The company paid $1,200 cash for wages to a drafting assistant.

q. The company paid $2,500 cash for advertisements on the web during June.

Required

1: Prepare general journal entries to record these transactions

2: Open the following ledger accountstheir account numbers are in parentheses (use the balance

column format): Cash (101); Accounts Receivable (106); Prepaid Insurance (108); Office Equipment

(163); Drafting Equipment (164); Building (170); Land (172); Accounts Payable (201); Notes Payable

(250); J. Aracel, Capital (301); J. Aracel, Withdrawals (302); Engineering Fees Earned (402); Wages

Expense (601); Equipment Rental Expense (602); Advertising Expense (603); and Repairs Expense

(604). Post the journal entries from part 1 to the accounts and enter the balance after each posting.

Q3:

Denzel Brooks opens a web consulting business called Venture Consultants and completes the

following transactions in March.

March 1: Brooks 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 as partial payment for the work completed on March 9.

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

29: Brooks 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 month's utility bill.

Required

1. Prepare general journal entries to record these transactions

2. Open the following ledger accountstheir 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); D. Brooks, Capital

(301); D. Brooks, Withdrawals (302); Services Revenue (403); and Utilities Expense (690). Post

the journal entries from part 1 to the ledger accounts and enter the balance after each posting.