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 completes the following transactions in March. March 1 Brooks invested $185,000 cash along with $29,000 n office equipment in the company in exchange for common stock. 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 $3,000 and office supplies for $2,300. Payment is due within 10 days. 6 The company completed services for a client and immediately received $5,000 cash. 9 The company completed a $9,100 project for a client, who must pay within 30 days. 12 The company paid $5,300 cash to settle the account payable created on March 3. 19 The company paid $7,700 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $7,700.) 22 The company received $4,100 cash as partial payment for the work completed on March 9. 25 The company completed work for another client for $5,020 on credit. 29 The company paid $6,500 cash in dividends. 30 The company purchased $1,900 of additional office supplies on credit. 31 The company paid $400 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

Answer 1

Req 1

Date	General Journal	Debit	Credit
Mar-01	Cash	185,000
	Office equipment	29,000
	Common stock		214,000
Mar-02	Prepaid rent	7,000
	Cash		7,000
Mar-03	Office equipment	3,000
	Office supplies	2,300
	Accounts payable		5,300
Mar-06	Cash	5,000
	Services revenue		5,000
Mar-09	Accounts receivable	9,100
	Services revenue		9,100
Mar-12	Accounts payable	5,300
	Cash		5,300
Mar-19	Prepaid insurance	7,700
	Cash		7,700
Mar-22	Cash	4,100
	Accounts receivable		4,100
Mar-25	Accounts receivable	5,020
	Services revenue		5,020
Mar-29	Dividends	6,500
	Cash		6,500
Mar-30	Office supplies	1900
	Accounts payable		1,900
Mar-31	Utilities expense	400
	Cash		400

Req 2

Cash
Date	Debit	Credit	Balance
Mar-01	185,000		185,000
Mar-02		7,000	178,000
Mar-06	5,000		183,000
Mar-12		5,300	177,700
Mar-19		7,700	170,000
Mar-22	4,100		174,100
Mar-29		6,500	167,600
Mar-31		400	167,200
Accounts Receivable
Date	Debit	Credit	Balance
Mar-09	9,100		9,100
Mar-22		4,100	5,000
Mar-25	5,020		10,020
Office Supplies
Date	Debit	Credit	Balance
Mar-03	2,300		2,300
Mar-30	1,900		4,200
Prepaid Insurance
Date	Debit	Credit	Balance
Mar-19	7,700		7,700
Prepaid Rent
Date	Debit	Credit	Balance
Mar-02	7,000		7,000
Office Equipment
Date	Debit	Credit	Balance
Mar-01	29,000		29,000
Mar-03	3,000		32,000
Accounts Payable
Date	Debit	Credit	Balance
Mar-03		5,300	5,300
Mar-12	5300		0
Mar-30		1,900	1,900
Common Stock
Date	Debit	Credit	Balance
Mar-01		214,000	214,000
Dividends
Date	Debit	Credit	Balance
Mar-29	6,500		6,500
Service Revenue
Date	Debit	Credit	Balance
Mar-06		5,000	5,000
Mar-09		9,100	14,100
Mar-25		5,020	19,120
Utilities Expense
Date	Debit	Credit	Balance
Mar-31	400		400

Req 3

VENTURE CONSULTANTS
Trial Balance
Mar-31
	Debit	Credit
Cash	167,200
Accounts receivable	10,020
Office supplies	4,200
Prepaid insurance	7,700
Prepaid rent	7,000
Office equipment	32,000
Accounts payable		1,900
Common stock		214,000
Dividends	6,500
Services revenue		19,120
Utilities expense	400
Totals	235,020	235,020