Question

Karla Tanner opened a Web consulting business called Linkworks and completed the following transactions in its first month of operations. April 1 Tanner invested $140,000 cash along with office equipment valued at $33,600 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 $16,800 in office equipment and $3,360 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 $11,200 project for a client, who must pay within 30 days. 13 The company paid $20,160 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 $8,960 cash as partial payment for the work completed on April 9. 25 The company completed work for another client for $2,640 28 The company paid a $6,200 cash dividend. 29 The company purchased $1,120 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. 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 View journal entry worksheet

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Part-1 Part-2 Date Account Debit Credit Cash Debit Credit Apr 1 $ 140,000 $ 33,600 Apr 1 Cash Office Equipment Common Stock (To record issue of common stock) Apr 1 Apr 6 Apr 22 Apr 1 $ 173,600 $ 140,000 Apr 2 $ 2,000 Apr 13 $ 8,960 Apr 19 Apr 28 Apr 30 $ $ $ $ $ 7,200 20,160 6,000 6,200 700 $ 7,200 Apr 2 Apr 2 Prepaid Rent Cash (To record payment of prepaid rent) $ 7,200 Ending Balance $ 110,700 Accounts Receivable Credit Apr 3 Apr 3 Apr 3 $ $ 16,800 3,360 $ 8,960 Office Equipment Office Supplies Accounts Payable (To record purchase of equipment and supplies) Debit Apr 9 Apr 25 Ending Balance $ 20,160 $ $ $ 11,200 Apr 22 2,640 4,880 $ 2,000 Prepaid Rent Apr 6 Apr 6 Cash Service Revenue (To record service revenue received) $ 2,000 Debit Credit Apr 2 $ 7,200 $ 11,200 Ending Balance $ 7,200 Apr 9 Apr 9 Accounts Receivable Service Revenue (To record service revenue) $ 11,200 Prepaid Insurance Debit Credit $ 20,160 Apr 19 $ Apr 13 Apr 13 6,000 Accounts Payable Cash (To record payment) $ 20,160 Ending Balance $ 6,000 $ 6,000 Office Supplies Apr 19 Apr 19 Prepaid Insurance Cash (To record payment of prepaid insurance) $ 6,000 Credit Debit Apr 3 Apr 29 Ending Balance $ $ $ 3,360 1,120 4,480 $ 8,960 Apr 22 Apr 22 Cash Accounts Receivable $ 8,960

(To record service revenue received) Office Equipment Credit $ 2,640 Apr 25 Apr 25 Accounts Receivable Service Revenue (To record service revenue) Debit Apr 1 Apr 3 Ending Balance $ 2,640 $ $ $ 33,600 16,800 50,400 $ 6,200 Apr 28 Apr 28 Dividend Cash (To record payment of dividend) $ 6,200 Debit Apr 13 $ Accounts Payable Credit 20,160 Apr 3 Apr 29 Ending Balance $ $ $ 20,160 1,120 1,120 $ 1,120 Apr 29 Apr 29 Office Supplies Accounts Payable (To record purchase of supplies) $ 1,120 Common Stock Debit Credit $ 700 Apr 1 $ 173,600 Apr 30 Apr 30 Utilities Expense Cash (To record utilities expense) $ 700 Ending Balance $ 173,600 Part 3 Trial Balance Dividend Credit Debit Credit Apr 28 $ 6,200 Debit $ 110,700 $ 4,880 $ 7,200 $ 6,000 $ 4,480 $ 50,400 Ending Balance $ 6,200 Cash Accounts Receivable Prepaid Rent Prepaid Insurance Office Supplies Office Equipment Accounts Payable Common Stock Dividend Service Revenue Utilities Expense Service Revenue Debit Credit $ 1,120 $ 173,600 $ 6,200 Apr 6 Apr 9 Apr 25 Ending Balance $ $ $ $ 2,000 11,200 2,640 15,840 $ 15,840 $ 700 Utilities Expense Total $ 190,560 $ 190,560 Debit Credit Apr 30 $ 700 Ending Balance $ 700