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 $145,000 cash along with office equipment valued at $34,800 in the company in exchange for common stock. 2 The company prepaid $7,200 cash for 12 months' rent for office space. Hint: Debit Prepaid Rent for $7,200. 3 The company made credit purchases for $17,400 in office equipment and $3,480 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 $11,600 project for a client, who must pay within 30 days. 13 The company paid $20,880 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. Wint: Debit Prepaid Insurance for $6,000. 22 The company received $9,280 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 $1,160 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 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 Mat

Answer 1

F G 1 Debit ($) Credit ($) $ 145,000 $ 34,800 $ 179,800 4 $ 7,200 8 $ 7,200 9 10 $ 17,400 $ 3,480 11 12 $ 20,880 13 14 $ 2,000 15 2,000 16 17 $ 11,600 18 $ 11,600 H Journal Entries 2 Date Account Titles 3 1-Apr Cash Office Equipment 5 Common Stock 6 (To record the investment) 7 2-Apr Prepaid Rent Cash (To record rent paid in advance) 3-Apr Office Equipment Office Supplies Accounts Payable (To record the purchase on account) 6-Apr Cash Service Revenue (To record services provided) 9-Apr Accounts Receivable Service Revenue 19 (To record services provided) 13-Apr Accounts Payable Cash 22 (To record cash paid to suppliers) 19-Apr Prepaid Insurance 24 Cash (To record insurance policy purchased) 26 22-Apr Cash Accounts Receivable (To record cash received from customers) 29 25-Apr Accounts Receivable Service Revenue 31 (To record services provided) 28-Apr Dividends Cash (To record dividends paid) 35 29-Apr Office Supplies Accounts Payable 37 (To record supplies purchased) 30-Apr Utilities Expense Cash (To record utilities expense paid) 20 $ 20,880 21 $ 20,880 23 $ 6,000 6,000 25 $ 9,280 27 $ 9,280 28 $ 2,640 30 $ 2,640 32 $ 6,200 33 6,200 34 $ 1.160 36 $ 1.160 38 $ 700 39 $ 700 40 41

P Q R S T 106 : Accounts Receivable Date Debit ($) Credit ($) Balance($) 9-Apr $ 11,600 $ 11,600 22-Apr $ 9,280$ 2,320 25-Apr $ 2,640 4,960 $ 4,960 L M N 0 1 101 : Cash 2 Date Debit ($) Credit ($) Balance($) 3 1-Apr $ 145,000 $ 145,000 4 2-Apr $ 7,200 $ 137,800 5 6-Apr $ 2,000 $ 139,800 6 19-Apr $ 6,000 $ 133,800 7 22-Apr $ 9,280 $ 143,080 8 28-Apr $ 6,200 $ 136,880 9 30-Apr $ 700 $ 137,580 10 $ 137,580 11 $ 137,580 12 13 124 : Office Supplies 14 Date Debit ($) Credit ($) Balance($) 15 3-Apr $ 3,480 $ 3,480 16 29-Apr $ 1,160 $ 4,640 17 $ 4,640 18 19 131 : Prepaid Rent 20 Date Debit ($) Credit ($) Balance($) 21 2-Apr $ 7,200 $ 7,200 22 $ 7,200 23 $ 7,200 24 25 201 : Accounts Payable 26 Date Debit ($) Credit ($) Balance($) 27 3-Apr $ 20,880$ 20,880 28 13-Apr $ 20,880 $ 29 29-Apr $ 1,160 $ 1,160 30 31 319 : Dividends 32 Date Debit ($) Credit ($) Balance($) 33 28-Apr $ 6,200 $ 34 $ 35 $ 128: Prepaid Insurance Date Debit ($) Credit ($) Balance($) 19-Apr $ 6,000 $ 6,000 $ 6,000 $ 6,000 Date 1-Apr 3-Apr 163 : Office Equipment Debit ($) Credit ($) Balance($) $ 34,800 $ 34,800 $ 17,400 $ 52,200 $ 52,200 Date 1-Apr 307: Common Stock Debit ($) Credit ($) Balance($) $ 179,800 $ 179,800 $ 179,800 $ 179,800 Date 6-Apr 9-Apr 25-Apr 403 : Service Revenue Debit ($) Credit ($) Balance($) $ 2,000 $ 2,000 $ 11,600 $ 13,600 $ 2.640$ 10,960 36 37 38 39 690 : Utilities Expense Date Debit ($) Credit ($) Balance($) 30-Apr $ 700 $ 700 $ 700 $ 700 40 41

A A B с D 1 Trial Balance 2 Account No. Account Titles Debit ($) Credit ($) 3 101 Cash $ 115,300 4 106 Accounts Receivable $ 4,960 5 124 Office Supplies $ 4,640 6 128 Prepaid Insurance $ 6,000 7 131 Prepaid Rent $ 7,200 8 163 Office Equipment $ 52,200 9 201 Accounts Payable $ 1,160 10 307 Common Stock $ 179,800 11 319 Dividends $ 6,200 12 403 Services Revenue $ 16,240 13 690 Utilities Expense $ 700 14 15 Total $ 197,200 $ 197,200 16

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