Question

1 Tanner invested $100,000 cash along with office equipment valued at $24,000 in the company. 2 The company prepaid $7,200 cash for 12 months' rent for office space. 3 The company made credit purchases for $12,000 in office equipment and $2,400 in office supplies. Payment is due within 10 days. 4 The company completed services for a client and immediately received $2,000 cash. 5 The company completed a $8,000 project for a client, who must pay within 30 days.

Answer 1

2. Post the Journal Entries from Part 1 to Ledger Accounts Date Apr. 9 Apr. 22 Apr. 25 106 : Accounts Receivables Debit Credit Balance $ 8,000 $ 8,000 $ 6,400 $ 1,600 $ 2,640 $ 4,240 Date Apr. 1 Apr. 2 Apr. 6 Apr. 13 Apr. 19 Apr. 22 Apr. 28 Apr. 30 101 : Cash Debit Credit $ 1,00,000 $ 7,200 $ 2,000 14,400 $ 6,000 $ 6,400 $ 6,200 $ 700 Balance $ 1,00,000 $ 92,800 $ 94,800 80,400 $ 74,400 80,800 74,600 $ 73,900 A 1. A A | Date Ar. 3 Apr. 29 124 : Office Supplies Debit Credit $ 2,400 $ 800 Balance $ 2,400 $ 3,200 Date Apr. 2 131 : Prepaid Rent Debit Credit 7,200 Balance $ 7,200 128 : Prepaid Insurance Debit Credit $ 6,000 Date Apr. 19 $ Balance $ 6,000 Date Apr. 1 Apr. 3 163 : Office Equipment Debit Credit $ 24,000 $ 12,000 Balance $ 24,000 $ 36,000 Date Apr. 3 Apr. 13 201 : Accounts Payable / Debit Credit Balance $ 14,400 $ 14,400 $ 14,400 800 $ 800 Apr. 29 Date Apr. 1 301 : K. Tanner, Capital / Debit Credit Balance $ 1,24,000 $ 1,24,000 302 : K. Tanner, Withdrawals Date Debit Credit Balance Apr. 28 $ 6,200 $ 6,200 Date Apr. 6 Apr. 9 403 : Service Revenue / Debit Credit 2,000 8,000 2,640 Date Apr. 30 690 : Utilities Expense Debit Credit $ 700 Balance $ 700 A Balance $ 2,000 $ 10,000 $ 12,640 A Apr. 25 A

3. Preparation of Trial Balance : Credit LinkWorks Trial Balance April 30 Particulars | Debit Cash 73,900 Accounts Receivables $ 4,240 Office Supplies 3,200 Prepaid Insurance 6,000 Prepaid Rent $ 7,200 Office Equipment $ 36,000 Accounts Payables K. Tanner, Capital K. Tanner, Withdrawals $ 6, Service Revenue Utilities Expense $ 700 $1,37,440 $ 800 $ 1,24,000 $ 12,640 $1,37,440 Note : The Trial Balance does not contain the effect of transactions of Rent and Insurance expensed off from the Prepaid Accounts