Question

Problem 2-1A Preparing and posting Journal entries; preparing a trial balance LO C3, C4, A1, P1, P2 operations. Karla Tanner opens a Web consulung business called Linkworks and completed the following transactions in its first month of April 1 Tanner invested $90,000 cash along with office equipment valued at $21,600 in the company. 2 The company prepaid $7,200 cash for 12 months' rent for office space. Hint: Debit Prepaid Rent for $7.200. The company made credit purchases for $10,000 in office equipment and $2,160 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 $7,200 project for a client, who must pay within 30 days. 11 The company paid $12,90 cash to settle the account payable created on April 3. 19 The company paid $6.000 cash for the presiun on a 12-month insurance policy. Wint: Debit Prepaid Insurance for $6.00e. 22 The company received $5,760 cash as partial payment for the work completed on April 9. 25 The company completed work for another client for $2,64e on credit. 28 Tanner withdrew $6,2ee cash froe the company for personal use. 29 The company purchased $720 of additional office supplies on credit 10 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): K. Tanner, Capital (3017 K. Tanner Withdrawals 202: Services Revenue (403); and Lities Expense (690) 2. Post the journal entries from part 1 to the ledger accounts. 2. Prepare a trial balance as of April 30. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 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): K. Tanner, Capital (301); k Tence. Withdrawal (302). Services Revenue (403); and Utilities Expense (690). View transaction et Journal entry worksheet 1 2 3 12

Answer 1

94.800 Date General Journal Debit Credit 1-Apr Cash $90,000 Office Equipment $121,000 Common Stock $211,000 2-Apr Prepaid rent $7,200 Cash $7,200 3-Apr Office Equipment $10,800 Office Supplies $2.160 Accounts Payable $12,960 6-Apr Cash $2,000 Service Revenues $2,000 9-Apr Accounts Receivable $7,200 Service Revenues $7,200 13-Apr Accounts payable $12,960 Cash $12.960 19-Apr Prepaid insurance $6,000 $6.000 22-Apr Cash $5,760 Accounts receivable $5,760 25-Apr Accounts receivable $2,640 Services revenue $2,640 28-Apr Dividends $6,200 Money withdrawn from the company as the owner or shareholder that's to be $6,200 used for anything other than for the business is called drawings'. These drawings can generally be categorised as salary or dividend payments or advances under your shareholder current account. 29-Apr office supplies $720 Accounts payable $720 30-Apr Utilities expense $700 Cash $700 2) Posting the Journal 101: Cash Date Debit Credit Balance 1-Apr $90,000 $90,000 $7,200 $82,800 6-Apr $2,000 13-Apr - $12,960 $71,840 $71.840 19-Apr $6,000 $65,840 22-Apr $5,760 $71,600 28-Apr $6,200 $65,400 30-Apr $700 $64,700 2-Apr 106: Accounts Receivable Debit $7,200 Date 9- Apr 22-Apr 25-Apr Credit Balance $7,200 $1,440 $4,080 $5,760 $2,640 Credit Date 3-Apr 29-Apr 124: Office Supplies Debit $2,160 $720 Balance $2,160 $2,880 128: Prepaid Insurance Debit $6,000 Date 19-Apr Credit Balance $6,000 131: Prepaid Rent Debit $7,200 Date 2-Apr Credit Balance $7,200 Credit Date 1-Apr 3-Apr 163: Office Equipment Debit $121,000 $10,800 Balance $121,000 $131,800 201: Accounts Payable Debit Date 3-Apr 13-Apr 29-Apr Credit $12,960 Balance $12.960 $0 $720 $12,960 $720 307: Common Stock Debit Date Credit $211,000 Balance $211,000 1-Apr 319: Dividends Debit $6,200 Date 28-Apr Credit Balance $6.200 403: Service Revenue Debit Date 6-Apr 9-Apr 25-Apr Credit $2,000 $7,200 $2,640 Balance $2,000 $9,200 $11,840 690: Utilities Expense Debit $700 Date 30-Apr Credit Balance $700 3) Preparing a Trial LINKWORKS Trial Balance Credit Cash Accounts receivable Office supplies Prepaid insurance Prepaid rent Office equipment Accounts payable Common stock Dividends Services revenue Utilities expense Totals 30-Apr Debit $64,700 $4,080 $2,880 $6,000 $7,200 $131,800 $720 $211.000 $6,200 $11,840 $700 $223,560 $223,560