Question

Help Denzel Brooks opened a Web consulting business called Venture Consultants and completes the following transactions in March. March 1 Brooks invested $175,000 cash along with $28,000 in office equipment in the company in exchange for common stock. 2 The company prepaid $7,000 cash for six months' rent for an office. (Hint: Debit Prepaid Rent for $7,000.) 3 The company made credit purchases of office equipment for $3,400 and office supplies for $2,400. Payment is due within 10 days. 6 The company completed services for a client and immediately received $5,000 cash. 9 The company completed a $10,100 project for a client, who must pay within 30 days. 12 The company paid $5,800 cash to settle the account payable created on March 3. 19 The company paid $5,200 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $5,200.) 22 The company received $5,400 cash as partial payment for the work completed on March 9. 25 The company completed work for another client for $3,900 on credit. 29 The company paid $6,100 cash in dividends. 30 The company purchased $1,100 of additional office supplies on credit. 31 The company paid $1,100 cash for this month's utility bili. 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 the end of March. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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). View transaction list

Answer 1

1. In the books of Venture Consultants:

Date	General Journal	Debit	Credit
March		$	$
1	Cash	175,000
	Office Equipment	28,000
	Common Stock		203,000
2.	Prepaid Rent	7,000
	Cash		7,000
3.	Office Equipment	3,400
	Office Supplies	2,400
	Accounts Payable		5,800
6.	Cash	5,000
	Services Revenue		5,000
9.	Accounts Receivable	10,100
	Services Revenue		10,100
12.	Accounts Payable	5,800
	Cash		5,800
19	Prepaid Insurance	5,200
	Cash		5,200
22	Cash	5,400
	Accounts Receivable		5,400
25	Accounts Receivable	3,900
	Services Revenue		3,900
29	Dividends	6,100
	Cash		6,100
30	Office Supplies	1,100
	Accounts Payable		1,100
31	Utilities Expense	1,100
	Cash		1,100

3.

Venture Consultants Trial Balance March 31
Account Titles	Debit	Credit
	$	$
Cash	160,200
Accounts Receivable	8,600
Office Supplies	3,500
Prepaid Insurance	5,200
Prepaid Rent	7,000
Office Equipment	31,400
Accounts Payable		1,100
Common Stock		203,000
Dividends	6,100
Services Revenue		19,000
Utilities Expense	1,100
Totals	$ 223,100	$ 223,100