Question

April 1 Tanner invested $115,000 cash along with office equipment valued at $27,600 in the company. 2 The company prepaid $7,200 cash for twelve months' rent for office space. (Hint: Debit Prepaid Rent for $7,200) 3 The company made credit purchases for $13,800 in office equipment and $2,760 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 $9,200 project for a client, who must pay within 30 days. 13 The company paid $16,560 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 $7,360 cash as partial payment for the work completed on April 9. 25 The company completed work for another client for $2,640 on credit 28 Tanner withdrew $6,200 cash from the company for personal use. 29 The company purchased $920 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); K. Tanner, Capital (301); K. Tanner, Withdrawals (302); 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

Answer 1

Linkworks Journal entries Date Debit Credit Account $ 115,000 $ 27,600 1-Apr Cash Office Equipment $ 142,600 K. Tanner, Capital 2-Apr Prepaid Rent 7,200 Cash 7,200 $ 13,800 3-Apr Office Equipment Office Supplies Accounts Payable 2,760 $ 16,560 $ 2,000 6-Apr Cash Services Revenue 2,000 $ 9,200 9-Apr Accounts Receivable Services Revenue 9,200 $ 16,560 13-Apr Accounts Payable $ 16,560 Cash 19-Apr Prepaid Insurance 6,000 Cash 6,000 22-Apr Cash 7,360 Accounts Receivable 7,360 2,640 25-Apr Accounts Receivable 2,640 Services Revenue 28-Apr K. Tanner, Withdrawals 6,200 Cash 6,200 29-Apr Office Supplies 920 Accounts Payable 920 30-Apr Utilities expense 700 Cash 700 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24

Linkworks TAccounts Date Date Date Office Supplies Date Debit Debit Credit Credit Debit Credit Debit Credit Date Date Date Date Cash Accounts Receivable Prepaid Insurance 9-Apr $ 9,200 3-Apr $ 2,760 1-Apr $115,000 6-Apr $ 22-Apr $ 7,360 2-Apr $ 7,200 22-Apr $ 7,360 19-Apr $ 6,000 13-Apr $ 16,560 19-Apr $ 6,000 25-Apr $ 2,640 29-Apr $ 2,000 920 28-Apr $ 6,200 30-Apr $ 700 $ 87,700 $ 4,480 $ 3,680 $ 6,000 Bal. Bal. Bal. Bal. Office Equipment Prepaid Rent 1-Apr $ 27,600 2-Apr $ 7,200 3-Apr $ 13.800 $ 7,200 $41,400 Bal. Bal. K. Tanner, Capital Accounts Payable K. Tanner, Withdrawals 3-Apr $ 16,560 29-Apr $ 1-Apr $142,600 13-Apr $ 16,560 28-Apr $ 6,200 920 $ 6,200 $142,600 Bal. Bal. Bal. 920 Utilities expense Services Revenue 6-Apr $ 2,000 9-Apr $ 9,200 25-Apr $ 2,640 30-Apr $ 700 $ 13,840 2$ Bal. Bal. 700

Linkworks TB Debit Credit Account Names Cash 87,700 Accounts Receivable 4,480 Office Supplies 3,680 Prepaid Insurance 6,000 Prepaid Rent 7,200 Office Equipment 41,400 Accounts Payable 920 K. Tanner, Capital 142,600 6,200 K. Tanner, Withdrawals Services Revenue 13,840 Utilities expense 700 Totals 157,360 157,360