In: Accounting
Denzel Brooks opened a Web consulting business called Venture
Consultants and completed the following transactions in
March.
March | 1 | Brooks invested $175,000 cash along with $28,000 in office equipment in the company in exchange for common stock. | ||
2 | The company prepaid $7,500 cash for six months' rent for an office. Hint: Debit Prepaid Rent for $7,500. | |||
3 | The company made credit purchases of office equipment for $4,700 and office supplies for $2,200. Payment is due within 10 days. | |||
6 | The company completed services for a client and immediately received $4,000 cash. | |||
9 | The company completed a $11,100 project for a client, who must pay within 30 days. | |||
12 | The company paid $6,900 cash to settle the account payable created on March 3. | |||
19 | The company paid $8,200 cash for the premium on a 12-month insurance policy. Hint: Debit Prepaid Insurance for $8,200. | |||
22 | The company received $3,200 cash as partial payment for the work completed on March 9. | |||
25 | The company completed work for another client for $4,000 on credit. | |||
29 | The company paid a $5,700 cash dividend. | |||
30 | The company purchased $800 of additional office supplies on credit. | |||
31 | The company paid $1,100 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.