Question

em Help Karla Tanner opened a Web consulting business called Linkworks and completed the following transactions in its first month of operations. April 1 Tanner invested $120,000 cash along with office equipment valued at $28,800 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 $14,400 in office equipment and $2,880 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 $9,600 project for a client, who must pay within 30 days. 13 The company paid $17,280 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 $7,680 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 $960 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 a trial balance as of April 30. LINKWORKS

Answer 1

Linkworks Journal Enteries Date Particulars 1.4.2019 Cash a/c Dr. Office Equipment a/c Dr. To Common Stock (Capital Invested) Debit in $ Credit in $ 120000 28800 148800 2.4.2019 7200 Prepaid Rent a/c Dr. To Cash (12 months rent paid) 7200 14400 2880 3.4.2019 Office Equipment a/c Dr. Office Supplies a/c Dr. To Accounts Payable (Purchase on account) 17280 6.4.2019 2000 Cash a/c Dr. To Service Revenue (Services provided in cash) 2000 9600 9.4.2019 Accounts Receivable a/c Dr. To Service Revenue (Services provided on account) 9600 17280 13.4.2019 Accounts Payable a/c Dr. To Cash (Creditors paid) 17280 6000 19.4.2019 Prepaid Insurance a/c Dr. To Cash (12 months insurance paid) 6000

Date Particulars 22.4.2019 Cash a/c Dr. To Accounts Receivable (Cash from debtors) Debit in $ Credit in $ 7680 7680 2640 25.4.2019 Accounts Receivable a/c Dr. To Service Revenue (Services provided on account) 2640 6200 28.4.2019 Dividends a/c To Cash (Dividends paid in cash) 6200 960 29.4.2019 Office Supplies a/c Dr. To Accounts Payable (Office supplies on credit) 960 Dr. 700 30.4.2019 Utility Expense a/c To Cash (Utility expense paid) 700

Worksheet For the month ending 30.4.2019 Unadjusted Debit in $ Credit in $ 92300 4560 3840 7200 6000 43200 960 Particulars Cash Accounts Receivable Office Supplies Prepaid Rent Prepaid Insurance Office Equipment Accum. Depre - Equip. Accounts Payable Wages Payable Common Stock Dividends Service Revenue Utility Expense Rent Expense Insurance Expense Supplies Expense. Depreciation Expense Wages Expense Totals 148800 6200 14240 700 164000 164000