Question

Problem: Leveon Bell opened a jet engine consulting business called JetWorks (the "Company) and completed the following transactions in its first month of operations.

RANS DESCRIPTION

4/1 Bell invested 75,000 cash along with office equipment valued at 25,000 in the company.

4/2 The company prepaid 12,000 cash for 12 months rent for office space.

4/3 The company made credit purchases for 6,000 in office equipment and 4,000 in office supplies. Payment is due in 10 days.

4/6 The company completed services for a client and immediately received 5,000 cash.

4/7 The company received a customer advance of 7,000 cash for work it will perform in May.

4/9 The company completed an 8,000 project for a client who will pay within 30 days.

4/13 The company paid 10,000 cash to settle the account payable created on April 3.

4/19 The company paid 2,400 cash for the premium on a 12-month insurance policy.

4/22 The company received 4,000 cash as partial payment for the work completed on April 9

4/25 The company completed work for another client for 2,400 on credit.

4/28 Bell withdrew 5,000 cash from the company for personal use.

4/29 The company purchased 800 of additional office supplies on credit.

4/30 The company paid 750 cash for April's utility bill.

"Lab Requirements: (1) Prepare journal entries to record these transactions (JE Tab). (2) Post journal entries from part 1 (JE Tab) to ledger accounts (T-ACCTS Tab) and total each account at end of month. (3) Prepare a trial balance (TB) as of April 30th."

Answer 1

JetWorks Journal Entries Date Details Debit ($) Credit ($) Apr-01Cash 75000 Office Equipment 25000 Capital 100000 Apr-02 Prepaid Rent Cash 12000 120001 6000 Apr-03 Office Equipment Supplies Accounts Payable 10000 Apr-06 Cash Service Revenue 50001 7000 Apr-07 Cash | Unearned Revenue 7000 Apr-09 Accounts Receivable Service Revenue 8000 10000 Apr-13 Accounts Payable Cash 100001 2400 Apr-19 Prepaid Insurance Cash 2400 4000 Apr-22 Cash Accounts Receivable 4000 Apr-25 Accounts Receivable Service Revenue 2400 Apr-28 Drawings Cash 5000 Apr-29 Office Equipment Accounts Payable sool Apr-30 Utilities Expenses Cash

Cash Account Prepaid Insurance Account Drawings Account Apr-19 Apr-28 Apr-01 Apr-06 Apr-07 Apr-22 75000 5000 7000 4000 Apr-02 Apr-13 Apr-19 Apr-28 Apr-30 Bal. c/d 12000 10000 2400 5000 750 60850 91000 Bal. c/d Bal.c/d 5000 91000 2400 2400 2400 Accounts Receivable Office Equipment Account Service Revenue Account 4000 Apr-09 Apr-25 8000 Apr-22 2400 Apr-01 Apr-03 6000 800 Apr-06 Apr-09 Apr-25 5000 8000 2400 Apr-29 Bal. c/d 6400 Bal.c/d Bal. c/d 318001 31800 15400 15400 10400 10400 31800 15400 Supplies Account Accounts Payable Utilities Expense Account Apr-03 4000 Apr 13 1 00001 Apr-03 Apr-70 10000 8001 Bal.c/d Bal.c.d Bal.c/d 4000 4000 800 10800 4000 10800 750 750 Prepaid Rent Account Capital Account Unearned Revenue Account Apr-02 12000 Apr-01 100000 Apr-07 Bal.c/d 100000 Bal. c/d Bal.c/d 12000 12000 7000 7000 12000 100000 100000

Cash Jet Work Trial Balance (as at 30th April) S. No. Name of Ledger Accounts Debit ($) Credit ($) 60850 Accounts Receivable 6400 Supplies 4000 Prepaid Rent 12000 Prepaid Insurance 2400 Office Equipment 31800 Accounts Payable 800 Unearned Revenue 7000 Capital 100000 Drawings Service Revenue 15400 Utilities Expenses 750 5000 TOTAL 123200 123200