Question

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

March		1		Brooks invested $165,000 cash along with $30,000 in office equipment in the company.
		2		The company prepaid $9,500 cash for six months' rent for an office. Hint: Debit Prepaid Rent for $9,500.
		3		The company made credit purchases of office equipment for $5,100 and office supplies for $2,400. Payment is due within 10 days.
		6		The company completed services for a client and immediately received $6,000 cash.
		9		The company completed a $8,600 project for a client, who must pay within 30 days.
		12		The company paid $7,500 cash to settle the account payable created on March 3.
		19		The company paid $7,300 cash for the premium on a 12-month insurance policy. Hint: Debit Prepaid Insurance for $7,300.
		22		The company received $3,300 cash as partial payment for the work completed on March 9.
		25		The company completed work for another client for $3,830 on credit.
		29		Brooks withdrew $5,400 cash from the company for personal use.
		30		The company purchased $1,000 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 (201); 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

JOURNAL ENTRIES

march 1

                Cash (101) dr                                                              165000

    Office Equipment (163) Dr                                            30000

                     To D. Brooks, Capital (302)                                    195000

March 2

Prepaid Rent (131) Dr        9500

            To Cash (101) dr                9500

march 3

Office Equipment (163) dr                                    5100

Office Supplies (124) dr                              2400

                  to Accounts Payable (201)                         7500

march 6

Cash (101)                                              6000

             to Services Revenue (403)                            6000

march 9

      Accounts Receivable (106)                     8600

           To Services Revenue (403)                    8600

march 12

Accounts Payable (201) dr                7500

                 to Cash (101);                                7500

maerch 19

    Prepaid Insurance (128) Dr        7300

              To Cash (101);      7300

march 22

Cash (101) dr        3300

            To Accounts Receivable (106);                               3300

march 25

Accounts Receivable (106) Dr 3830

       To Services Revenue (403)                                        3830

march 29

D. Brooks, Withdrawals (302) Dr            5400

                         To Cash (101);                              5400

march 30

    Office Supplies (124) Dr                          1000

               To Accounts Payable (201)                              1000

march 31

Utilities Expense (690) Dr                     700

                     Tto Cash (101);                                       700

Cash (101);

date	particulars	amount	date	particulars	amount
march 1	D brooks capital account	165000	march 2	prepaid rent account	9500
march6	services revenue	6000	march 12	accounts payable	7500
march 22	accounts receivable	3300	march 19	prepaid insurance	7300
			march 29	brooks drawings account	5400
			march 31	utility expenses	700
			march 31	closing balance	143900

                                     Accounts Receivable (106);

Office Supplies (124);

Prepaid Insurance (128);

Prepaid Rent (131);.

Office Equipment (163);

  Accounts Payable (201)

D. Brooks, Capital (301);

                                            D. Brooks, Withdrawals (302)

Services Revenue (403);

                                      Utilities Expense (690)

TRIAL BALANCE

particulars	debit	credit
cash	143900
accounts receivables	9130
Office Supplies (124);	3400
prepaid insurance	7300
prepaid rent	9500
office equipment	35100
accounts payable		1000
d brooks capital		195000
d brooks withdrawals	5400
services revenue		18430
Utilities Expense	700
TOTAL	214430	214430