Question

Rhonda Richards opens a web consulting business called Dairy Plus and completes the following transactions in its first month of operations. Prepare journal entries for each transaction and identify the financial statement impact of each entry. The financial statements are automatically generated based on the journal entries recorded. 1 Richards invested $134,000 cash along with office equipment valued at $35,000 in the company. 2 The company prepaid $19,800 cash for twelve months' rent for office space. The company's policy is record prepaid expenses in balance sheet accounts. 3 The company made credit purchases for $9,800 in office equipment and $5,400 in office supplies. Payment is due within 10 days. 6 The company completed services for a client and immediately received $9,400 cash. 9 The company completed a $15,000 project for a client, who must pay within 30 days. Apr. Apr. Apr. Apr. Apr. Apr. 13 The company paid $15,200 cash to settle the account payable created Apr. 19 The company paid $6,720 cash for the premium on a 12-month insurance policy. The company's policy is record April 3. prepaid expenses in balance sheet accounts. Apr. 22 The company received $9,000 cash as partial payment for the work completed on April 9. Apr. 25 The company completed work for another elient for $5,700 on credit. Apr. 28 Richards withdrew $5,700 cash from the company for personal une. Apr. 29 The company purchased $2,400 of additional office supplies on credit. Apr. 30 The company paid $2,300 cash for this month'e utility bill. General Journal General Income Statement St Owners Equity Requirement Trial Balance Balance Sheet FS Impact Ledger Every journal entry must keep the accounting equation in balance. Prepare the journal entries for each of the transactions of the Dairy Plus Company, entering the debits before the credits. Each transaction will automatically be posted to the General Ledger and the Trial Balance as soon as you click "Record Entry". View transaction list Journal entry worksheet 2 8. 12 Apr. 1) Richards invested $134,000 cash along with office equipment valued at $35,000 in the company. < Prev 3 of 3 Next>

Answer 1

Dairy Plus Journal Enteries Date Particulars Apr-01 Cash a/c Dr. Office Equipment a/c Dr. To Rhonda Richards. Capital (Capital invested) Debit in $ Credit in $ 134000 35000 169000 Dr. 19800 Apr-02 Prepaid Rent a/c To Cash (12 months rent paid) 19800 9800 5400 Apr-03 Office Equipment a/c Dr. Office Supplies a/c Dr. To Accounts Payable (Assets purchased) 15200 9400 Apr-06 Cash a/c Dr. To Service Revenue (Service provided for cash) 9400 15000 Apr-09 Accounts Receivable a/c Dr. To Service Revenue (Services provided on account) 15000 Dr. 15200 Apr-13 Accounts Payable a/c To Cash (Creditors paid) 15200 Dr. 6720 Apr-19 Prepaid Insurance a/c To Cash (12 month insurance paid) 6720 9000 Apr-22 Cash a/c Dr. To Accounts Receivable (Cash from debtors) 9000 Apr-25 5700 Accounts Receivable a/c Dr. To Service Revenue (Services provided on account) 5700 5700 Apr-28 Rhonda Richards, Withdrawals a/c Dr. To Cash (Cash withdrawn for personal use) 5700 2400 Apr-29 Office Supplies a/c Dr. To Accounts Payable (Assets purchased) 2400 Apr-30 Dr. 2300 Utility Expense a/c To Cash (Expense paid) 2300

Trial Balance For the month ending Apr 30 Particulars Cash Accounts Receivable Office Supplies Prepaid Rent Prepaid Insurance Office Equipment Accounts Payable Rhonda Richards. Capital Rhonda Richards, Withdrawals Service Revenue Utility Expense Totals Debit in $ Credit in $ 102680 11700 7800 19800 6720 44800 2400 174700 5700 24400 2300 201500 201500 Statement of Income For the month ending Apr 30 Service Revenue Utility Expense Net Income 24400 -2300 22100 Statement of Owners Equity For the month ending Apr 30 Rhonda Richards. Capital Net Income 174700 22100 196800 -5700 191100 Rhonda Richards, Withdrawals

Amounts in $ Amounts in $ Balance Sheet As at Apr. 30 Assets Current Assets Cash Accounts Receivable Office Supplies Prepaid Rent Prepaid Insurance 2400 Amounts in $ Amounts in $ Liabilities Current Liabilities 102680 Accounts Payable 11700 7800 19800 6720 148700 Non Current Assets Office Equipment Total Assets Owners Equity 44800 Rhonda Richards. Capital 193500 Total Liabilities & Equity 191100 193500