Question

Karla Tanner opened a Web consulting business called Linkworks and completed the following transactions in its first month of operations April 1 Tanner invested $110,000 cash along with office equipment valued at $26, 480 in the company in exchange for common stock. 2 The company prepaid $7,200 cash for 12 months' rent for office space. Mint: Debit Prepaid Rent for $7,200. 3 The company made credit purchases for $13,209 in office equipment and $2,640 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 $8,800 project for a client, who must pay within 30 days. 13 The company paid $15,840 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 $7,040 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 The company paid a $6,200 cash dividend. 29 The company purchased $880 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): 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 April 30. 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 (219), Services Revenue (403); and Utilities Expense (690). View ramacionist < Prey 2 of 7 !!! Next >

Answer 1

1 Credit Date General Journal 1-Apr Cash Office equipment Common stock Debit $ 110,000 $ 26,400 $ 136,400 $ 7,200 2-Apr Prepaid rent Cash $ 7,200 3-Apr Office equipment Office supplies Accounts payable $ 13,200 $ 2,640 $ 15,840 $ 2,000 6-Apr Cash Services revenue $ 2,000 $ 8,800 9-Apr Accounts receivable Services revenue $ 8,800

$ 15,840 13-Apr Accounts payable Cash $ 15,840 $ 6,000 19-Apr Prepaid insurance Cash $ 6,000 $ 7,040 22-Apr Cash Accounts receivable $ 7,040 $ 2,640 25-Apr Accounts receivable Services revenue $ 2,640 $ 6,200 28-Apr Dividends Cash $ 6,200 $ 880 29-Apr Office supplies Accounts payable $ 880 $ 700 30-Apr Utilities expense Cash $ 700

2 101: Cash Date Debit Credit Balance 1-Apr $110,000 $110,000 2-Apr $ 7,200 $102,800 6-Apr $ 2,000 $104,800 13-Apr $15,840 $ 88,960 19-Apr $ 6,000 $ 82,960 22-Apr $ 7,040 $ 90,000 28-Apr $ 6,200 $ 83,800 30-Apr $ 700$ 83,100 106: Accounts Receivable Date Debit Credit Balance 9-Apr $ 8,800 $ 8,800 22-Apr $ 7,040 $ 1,760 25-Apr $ 2,640 $ 4,400 124: Office Supplies Date Debit Credit Balance 3-Apr $ 2,640 $ 2,640 29-Apr $ 880 $ 3,520 128: Prepaid Insurance Date Debit Credit Balance 19-Apr $ 6,000 $ 6,000 131: Prepaid Rent Date Debit Credit 2-Apr $ 7,200 Balance $ 7,200 163: Office Equipment Date Debit Credit Balance 1-Apr $26,400 $ 26,400 3-Apr $13,200 $ 39,600

Date 201: Accounts Payable Date Debit Credit Balance 3-Apr $ 15,840 $ 15,840 13-Apr $ 15,840 $ 29-Apr $ 880 $ 880 307: Common Stock Debit Credit Balance $136,400 $136,400 1-Apr Date 28-Apr $ 319: Dividends Debit Credit 6,200 Balance $ 6,200 Date 6-Apr 9-Apr 25-Apr 403: Service Revenue Debit Credit Balance $ 2,000 $ 2,000 $ 8,800 $ 10,800 $ 2,640 $ 13,440 690: Utilities Expense Date Debit Credit Balance 30-Apr $ 700 $ 700

3 KARLA TANNER Trial Balance 30-Apr Account Debit Credit Cash $ 83,100 Accounts Receivable $ 4,400 Office Supplies $ 3,520 Prepaid Insurance $ 6,000 Prepaid Rent $ 7,200 Office Equipment $ 39,600 Accounts Payable $ 880 Common Stock $ 136,400 Dividends $ 6,200 Service Revenue $ 13,440 Utilities Expense $ 700 TOTAL $150,720 $150,720 $ A|A|A|A|A|A $

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