Question

Problem 2-3A Preparing and posting journal entries; preparing a trial balance LO C3, C4, A1, P1, P2

Denzel Brooks opened a Web consulting business called Venture Consultants and completes the following transactions in March.

March		1		Brooks invested $170,000 cash along with $20,000 n office equipment in the company in exchange for common stock.
		2		The company prepaid $8,000 cash for six months' rent for an office. (Hint: Debit Prepaid Rent for $8,000.)
		3		The company made credit purchases of office equipment for $5,000 and office supplies for $2,000. Payment is due within 10 days.
		6		The company completed services for a client and immediately received $6,500 cash.
		9		The company completed a $9,800 project for a client, who must pay within 30 days.
		12		The company paid $7,000 cash to settle the account payable created on March 3.
		19		The company paid $4,200 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $4,200.)
		22		The company received $3,200 cash as partial payment for the work completed on March 9.
		25		The company completed work for another client for $5,390 on credit.
		29		The company paid $6,300 cash in dividends.
		30		The company purchased $1,900 of additional office supplies on credit.
		31		The company paid $900 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 the end of March.

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a trial balance as of the end of March. Credit VENTURE CONSULTANTS Trial Balance March 31 Debit Cash Accounts receivable ble Office supplies Prepaid insurance Prepaid rent Office equipment Accounts payable Common stock Dividends Services revenue Utilities expense Totals

Answer 1

Journal entry Journal Debit Date General Credit March 170,000 20,000 190,000 Cash Ale | Office equipment o Comman stock (To record cash f equipm- ent bought in exchange of comman Stock) 8000 8000 2. Prepaid sent alca Cash Alc (To record pepaid 6 months) sent for Office Equipment SOOD office бириш 2000 Accounts payable. (To record equipment of Supplies purchased on account) 7000 6500 Cash Ac. Service To record 6500 Revenue Ale service rendered) 9800 9800 Accounts receivable Alc Bervice Revenue (To record service rendered on account)

12. ODD 700D Accounts payable o Cash Alc. (To record cash paid Coeditor) to 4200 19. 4200 Prepaid Insurance Cash (To record cash paid against premium insurance) 32.00 22. 320D Cash Ale Accounts Receivables (To record cash sereined against accounts receivables. 15390 5390 25. Accounts Receivable Service Revenue Alc. (To record service rendered on account) 6300 6300 29. Dividend Alc Cash Alc (to record dividend paid) 1900 1900 30. oktice Supplies Accounts payable To record credit purchase of office supplies. 900 900 31. Utility Biu Ale i Cash Alc (To record utility bių paid).

Casb tic mark Comman Stock 170,000 2 Prepaid rest 8000 6 Service Revenue 6500 12 Accounts pay ToOo 22 Accounts Receivabler 3200 19 Prepaid 4200 insurance 29 Dividend Ale 6300 900 31 Ending balance 153300 3 Biu علماظ 179700 9700 Mayon office Equipment Alc 1 Comman Stock 20,000 Accounts payable 500D mach 31 Ending balance 25000 25000 25000 comman Stock Alc march Cash Alc 170,000 2 office equipme 20,000. March 31 Ending balance 190,000 1190,000 190,000

march Cash 9 Prepaid sent Alc Alc8 000. mooth 31 Ending balance 8000 8000 B000 mar A cloth Office Supplies Arc 2000 - payables 1900 3D Accounts payable 31 Ending balance 3900 3900 3900 Service Revenue Alc march - 6 cash ac 6500 9 Accounts Receiva 9800 -bles 25. Accounts Receivables 5390 21 marth Ending bala 21690 nu 21690 21690

accounts Receivables man Service Renenud 9800.00 Cash Alo | 3200 Sem coch 25 Seguice Reuniu 5390 31 Ending 3 balance 1990 15190 15190 Accounts payables march Cash 7000 effice equipo office supplies 30 office supplies 31 Ending balance 1900 5000 2000 1900 . 900 8900 Insurance Alc march 191 Cash Cash Prepaid 4200 31 Ending balance 4200 4200 4200

utilities BiLAIC. marcha a Cash 3) ac 900 31 Ending balance 900 900 900 Dividend Alc. 6300 Cash 31 Ending balance 6300 6300 6300 Credit. 190,000 Tal Balance Debit Cash Ac 15 3300 Office Equipment 25000 Comman stock Prepaid sent BODO Office Supplies 3900 Service Revenue Accounts Receivables. 11990 Allounts payables Prepaid Insurance 4200 Utilities Bild Dividend 6300 21690 19ool quo TOTAL 213590 213590
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