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 completed the following transactions in March. March 1 Brooks invested $155,000 cash along with $30,000 in office equipment in the company. 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 $4,300 and office supplies for $1,800. Payment is due within 10 days. 6 The company completed services for a client and immediately received 3,000 cash. 9 The company completed a $10,700 project for a client, who must pay 30 days. 12 The company paid $6,100 cash to settle the account payable created on March 3. 19 The company paid $4,300 cash for the premiun on a 12-month insurance policy. Hint: Debit Prepaid Insurance for $4,300. 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 $5,080 on credit. 29 Brooks withdrew $5,800 cash from the company for personal use. 30 The company purchased $1,600 of additional office supplies on credit. 31 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 (2017: D. Brooks, Capital (301); D. Brooks, 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 the end of March

Answer 1

2 ДА В IDE 1 Journal Entries Date Account Titles Debit ($) Credit ($) 1-Mar Cash $ 155,000 Office Equipment $ 30,000 D. Brooks, Capital $185,000 (To record investment) 2-Mar Prepaid Rent $ 7,000 Cash $ 7,000 (To record rent paid in advance) 10 3-Mar Office Equipment $ 4,300 11 Office Supplies $ 1,800 12 Accounts Payable $ 6,100 13 |(To record purchases on credit) 14 6-Mar Cash $ 3,000 15 Service Revenue $ 3,000 16 (To record cash received) 17 9-Mar Accounts Receivable $ 10,700 18 Service Revenue $ 10,700 19 (To record services provided) 20 12-Mar Accounts Payable $ 6,100 Cash $ 6,100 (To record cash paid to suppliers) 23 19-Mar Prepaid Insurance $ 4,300 Cash | $ 4,300 |(To record insurance policy purchased) 26 22-Mar Cash $ 5,400 Accounts Receivable $ 5,400 28 (To record cash received) 27 Accou

Ε $ 5,080 29 30 $ 5,080 31 32 $ 5,800 $ 5,800 А. B 25-Mar Accounts Receivable Service Revenue (To record services provided) 29-Mar D. Brooks, Withdrawls Cash (To record withdraw for personal use) 30-Mar Office Supplies Accounts Payable (To record supplies purchased) 31-Mar Utility Expense Cash (To record utility expenses paid) $ 33 34 35 36 37 38 1,600 $ 1,600 $ 700 39 $ 700

1 L M N Accounts Receivable - 106 9-Mar $10,700 22-Mar $ 25-Mar $ 5,080 2 5,400 1-Mar 6-Mar 22-Mar Cash - 101 $ 155,000 2-Mar $7,000 $ 3,000 12-Mar $6,100 $ 5,400 19-Mar $4,300 29-Mar $5,800 31-Mar $ 700 31-Mar $10,380 covo Aw 31-Mar $139,500 Office Supplies - 124 $ 1,800 $ 1,600 3-Mar 30-Mar 9 Prepaid Insurance - 128 19-Mar $ 4,300 31-Mar $ 3,400 10 | 11 12 13 14 31-Mar $ 4,300 Prepaid Rent - 131 $ 7,000 15 2-Mar 1-Mar 3-Mar Office Equipment - 163 $ 30,000 $ 4,300 31-Mar $ 7,000 16 17 18 19 20 21 31-Mar $ 34,300 12-Mar Accounts Payable - 201 $ 6,100 3-Mar $ 30-Mar $ 6,100 1,600 22 D. Brooks, Withdrawals - 302 29-Mar $ 5,800 24 31-Mar $ 1,600 25

H I J K L M N O 2 G 19 20 31-Mar $ 34,300 21 Accounts Payable - 201 12-Mar $ 6,100 3-Mar $ 30-Mar $ 6,100 1,600 22 D. Brooks, Withdrawals - 302 23 29-Mar $ 5,800 24 31-Mar $ 1,600 26 31-Mar $ 5,800 D. Brooks, Capital - 301 1-Mar $185,000 27 Utilities Expense - 690 $ 700 29 31-Mar 30 31-Mar $185,000 32 31-Mar $ 700 33 Service Revenue - 403 6-Mar $ 3,000 9-Mar $ 10,700 25-Mar $ 5,080 31-Mar $ 18,780 35 36

R. NM + or S I Denzel Brooks Trial Balance for the month ended March 31 4 Account No. Account Name Debit ($) Credit ($) 101 Cash $139,500 106 Accounts Receivable $ 10,380 124 Office Supplies $ 3,400 128 Prepaid Insurance $ 4,300 131 Prepaid Rent $ 7,000 163 Office Equipment $ 34,300 201 Accounts Payable $ 1,600 12 301 D. Brooks, Capital $185,000 302 D. Brooks, Withdrawals $ 5,800 403 Service Revenue $ 18,780 690 Utilities Expense $ 700 16 Totals $ 205,380 $ 205,380 18 - 14 15 17

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