Problem

Barry Wells Management Group opens for business and completes these transactions in Nove...

Barry Wells Management Group opens for business and completes these transactions in November.

Nov. 1 Barry Wells, the owner, invested $30,000 cash along with $15,000 of office equipment in the

business.

2 Prepaid $4,500 cash for six months’ rent for an office. (Hint: Debit Prepaid Rent for $4,500.)

4 Made credit purchases of office equipment for $2,500 and of office supplies for $600. Payment

is due within 10 days.

8 Completed work for a client and immediately received $3,400 cash.

12 Completed a $10,200 project for a client, who must pay within 30 days.

13 Paid $3,100 cash to settle the payable created on November 4.

19 Paid $1,800 cash for the premium on a 24-month insurance policy.

22 Received $5,200 cash as partial payment for the work completed on November 12.

24 Completed work for another client for $1,750 on credit.

28 Barry Wells withdrew $5,300 cash for personal use.

29 Purchased $249 of additional office supplies on credit.

30 Paid $831 cash for this month’s utility bill.

Required

1. Prepare general journal entries to record these transactions (use account titles listed in part 2).

2. Open the following ledger accounts—their account numbers are in parentheses (use the balance column format): Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); B. Wells, Capital (301); B. Wells, Withdrawals (302); Services Revenue (403); and Utilities Expense (690). Post the journal entries from part 1 to the ledger accounts and enter the balance after each posting.

3. Prepare a trial balance as of the end of November.

Step-by-Step Solution

Request Professional Solution

Request Solution!

We need at least 10 more requests to produce the solution.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search
Solutions For Problems in Chapter 4