Return to question 4 Karla Tanner opened a Web consulting business called Linkworks and completed the following transactions in its first month of operations. 10 points April 1 Tanner invested $95,000 cash along with office equipment valued at $22,800 in the company in exchange for common stock. 2 The company prepaid $7,200 cash for 12 months' rent for office space. Hint: Debit Prepaid Rent for $7,200. 3 The company made credit purchases for $11,400 in office equipment and $2,280 in office supplies. Payment is due within 10 days. 6 The company completed services for a client and immediately received $2,000 cash. 9 The company completed a $7,600 project for a client, who must pay within 30 days. 13 The company paid $13,680 cash to settle the account payable created on April 3. 19 The company paid $6,000 cash for the premium on a 12-month insurance policy. Hint: Debit Prepaid Insurance for $6,000. 22 The company received $6,080 cash as partial payment for the work completed on April 9. 25 The company completed work for another client for $2,640 on credit. 28 The company paid a $6,200 cash dividend. 29 The company purchased $760 of additional office supplies on credit. 30 The company paid $700 cash for this month's 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). 2. Post the journal entries from part 1 to the ledger accounts. 3. Prepare a trial balance as of April 30. Return to question 4 101: Cash Debit Credit 106: Accounts Receivable Credit Date Balance Date Debit Balance 10 points 124: Office Supplies Debit Credit 128: Prepaid Insurance Debit Credit Date Balance Date Balance 131: Prepaid Rent Debit Credit 163: Office Equipment Debit Credit Date Balance Date Balance 201: Accounts Payable 307: Common Stock Date Debit Credit Balance Date Debit Credit Balance 10 points 319: Dividends 403: Services Revenue Date Debit Credit Balance Date Debit Credit Balance 690: Utilities Expense Date Debit Credit Balance Required 1 Required 2 Required 3 Prepare a trial balance as of April 30. LINKWORKS Trial Balance April 30 Debit Credit Cash 95,000 X 7,600 X Accounts receivable 2,280 Office supplies Prepaid insurance Prepaid rent Office equipment Accounts payable Common stock 7,200 11,400 X 13,680 X 117,800 Dividends Services revenue 2,000 Utilities expense Total $ 121,200 $ 135,760
