Question

Denzel Brooks opened a Web consulting business called Venture Consultants and completed the following transactions in March. March 1 Brooks invested $170,000 cash along with $25,000 in office equipment in the company in exchange for common stock. 2 The company prepaid $7,500 cash for six months' rent for an office. Hint: Debit Prepaid Rent for $7,500. 3 The company made credit purchases of office equipment for $4,300 and office supplies for $2,400. 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 $7,300 project for a client, who must pay within 30 days. 12 The company paid $6,700 cash to settle the account payable created on March 3. 19 The company paid $7,200 cash for the premium on a 12-month insurance policy. Hint: Debit Prepaid Insurance for $ 7,200. 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 $3,550 on credit. 29 The company paid a $6,400 cash dividend. 30 The company purchased $600 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 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 Journal entry worksheet 2 3 4 5 6 7 8 ..... 12

Answer 1

0 Date Credit Mar. ol cal Journal Cash office equipment Common Stock (To record common stock) Debit $ 170,000 $ 25,000 $ 195,000 Mar 02 $7,500 Prepaid sent Cash (To record prepaid rent) $7,500 Mar 03 $ 4,300 $2,400 Office equipment office supplies Accounts Payable (To record purchases) $6,700 Mar 06 $ 6,500 Cash services Revenue (To record cash received) $6,500 Mar.og Accounte Receivable $ 7,300 $7,300 Services Revenue (To record service revenues Mar 12 $ 6,700 Accounts Payable. cash (To record cash paid) $6,700

Mar 19 $ 7,200 Prepaid Insurance Cash (To record cash paid for insurances $7, 200 Mar 22 $3,200 Cash Accounts Receivable (To second cash received) $3,200 Mar. as $3,550 Accounts Receivable Services Revenue (To record sewice revenues $3,550 Mar. 29 $6,400 Dividends Cash (To record $6,400 dividend paid) Mar. 30 office supplies $ 600 Accounts Payable (To record office supplies purchased) $ 600 $900 Mar. 31 utilities expense Casho I to record cash paid for utility) $ 900

Cash Credit Balance $ 170,000 $7,500 101: Date Debit Mar. 1 $ 170,000 Maria Mari 6 $6,500 Mar. 12 Mar. 19 Mar: 22 $3,200 Mar. 29 Mar: 31 $ 6,700 $7,200 $ 162,500 $ 169,000 $162,300 $ 155,100 $ 158,300 $ 151,900 & 151,000 $6,400 & 900 supplies. Credit Date 124: office Debit $2,400 $ 600 Mar: 3 Mar: 30 Balance $ 2,400 $3,000 131: Debit Prepaid Rent I credit Date Balance Mar. 2 $7,500 1$7,5oo 201: Debit Accounts Payable Credit Balance $ 6,700 $ 6,700 Date Mar. 3 mar. 12. $ 6,700 1$ 600 $ 600 Mar. 30

319 : Dividends Date Debit Credit Mar. 29 $ 6,400 Balance 1$ 6,400 690: Utilities Date Debit Mar 31 $ 900 Expense Credit Balance $ 900 Receivable Credit 106: Accounts Date Debit Mar. g $7,300 Mar. 22 I Mar: 25 $3,550 $3,200 Balance $ 7,300 $ 4, 100 $7,650 Date 128: Prepaid Insurance Debit credit Balance $ 7,200 1$ 7,200 Mar. 19 163: Date Equipment Credit Balance $ 25,000 $ 29,300 Debit $ 25,000 $ 4,300 Mar. 1 Mar. 3

307: Common Stock Date Debit Credit Balance Mar. I $199,000 $199,000 103: services Revenue Date Debit Credit Balance Max. 6 $6,500 $6,500 Mar.g $7,300 $13,800 Mar. 25 $3,550 $17,350 (3) VENTURE CONSULTANTS Trial Balance March 31 Debit Credit Casho $ 151,000 Accounts Receivable $ 7,650 office supplies $ 3,000 Prepaid insurance $ 7,200 Prepaid rent $ 7,500 Office equipment $29,300 Accounts Payable $ 600 Common estock $ 195,000 Dividends $ 6,400 Services Revenue $17,350 Utilities Expense $ 900 Totale $212,950 $212,950)