Question

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 $25,000 in office equipment in the company in exchange for common stock.
		2		The company prepaid $9,000 cash for six months' rent for an office. Hint: Debit Prepaid Rent for $9,000.
		3		The company made credit purchases of office equipment for $3,900 and office supplies for $1,800. Payment is due within 10 days.
		6		The company completed services for a client and immediately received $4,500 cash.
		9		The company completed a $10,700 project for a client, who must pay within 30 days.
		12		The company paid $5,700 cash to settle the account payable created on March 3.
		19		The company paid $6,500 cash for the premium on a 12-month insurance policy. Hint: Debit Prepaid Insurance for $6,500.
		22		The company received $4,100 cash as partial payment for the work completed on March 9.
		25		The company completed work for another client for $3,900 on credit.
		29		The company paid a $5,500 cash dividend.
		30		The company purchased $1,400 of additional office supplies on credit.
		31		The company paid $600 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.

Answer 1

All Amounts in $

Answer 1

			Dr	Cr
Mar-01	Cash(101)		175000
Mar-01	Office Equipment(163)	25000
		Common Stock(307)	200000
Mar-02	Prepaid rent(131)		9000
		Cash(101)		9000
Mar-03	Office Equipment(163)	3900
Mar-03	Office Supplies (124) A/c	1800
		Accounts Payable(201)	5700
Mar-06	Cash(101)		4500
		service Revenue(403)	4500
Mar-09	Accounts Receivable(106)	10700
		service Revenue(403)	10700
Mar-12	Accounts Payable(201)	5700
		Cash(101)		5700
Mar-19	Prepaid Insurance A/c (128)	6500
		Cash(101)		6500
Mar-22	Cash(101)		4100
		Accounts Receivable(106)	4100
Mar-25	Accounts Receivable(106)	3900
		service Revenue(403)	3900
Mar-29	Dividend(319)		5500
		Cash(101)		5500
Mar-30	Office Supplies (124) A/c	1400
		Accounts Payable		1400
Mar-31	Utility Expense (690) A/c	600
		Cash(101)		600

Answer 2

		Cash(101)
Mar-01	Common Stock(307)	175000	Mar-02	Prepaid rent(131)	9000
Mar-06	service Revenue(403)	4500	Mar-12	Accounts Payable(201)	5700
Mar-22	Accounts Receivable(106)	4100	Mar-19	Prepaid Insurance A/c (128)	6500
			Mar-29	Dividend(319)	5500
			Mar-31	Utility Expense (690) A/c	600
			Mar-31	Balance c/d	156300
		183600			183600
		Common Stock(307)
			Mar-01	Cash(101)	175000
Mar-31	Balance C/d	200000	Mar-01	Office Equipment(163)	25000
		200000			200000
		Prepaid rent(131)
Mar-02	Cash(101)	9000	Mar-31	Balance c/d	9000
		Office Equipment(163)
Mar-01	Common Stock(307)	25000
Mar-03	Accounts Payable(201)	3900	Mar-31	Balance c/d	28900
		28900			28900
		Accounts Payable(201)
Mar-12	Cash(101)	5700	Mar-03	Office Equipment(163)	3900
			Mar-03	Office Supplies (124) A/c	1800
			Mar-30	Office Supplies (124) A/c	1400
Mar-31	Balance c/d	1400
		7100			7100
		Office Supplies (124) A/c
Mar-03	Accounts Payable(201)	1800
Mar-30	Accounts Payable(201)	1400	Mar-31	Profit and Loss a/c	3200
		3200			3200
		service Revenue(403)
			Mar-06	Cash(101)	4500
			Mar-09	Accounts Receivable(106)	10700
Mar-31	Profit and Loss a/c	19100	Mar-25	Accounts Receivable(106)	3900
		19100			19100
		Accounts Receivable(106)
Mar-09	service Revenue(403)	10700	Mar-22	Cash(101)	4100
Mar-25	service Revenue(403)	3900	Mar-31	Balance c/d	10500
		14600			14600
		Prepaid Insurance A/c (128)
			Mar-31	Balance c/d	6500
Mar-19	Cash(101)	6500			6500
		Dividend(319)
Mar-29	Cash(101)	5500	Mar-31	Profit and Loss a/c	5500
		5500			5500
		Utility Expense (690) A/c
Mar-31	Cash(101)	600	Mar-31	Profit and Loss a/c	600
		600			600

Answer 3

Trial Balance March 31
Cash(101)	156300
Common Stock(307)		200000
Prepaid rent(131)	9000
Office Equipment(163)	28900
Accounts Payable(201)		1400
Office Supplies (124) A/c	3200
service Revenue(403)		19100
Accounts Receivable(106)	10500
Prepaid Insurance A/c (128)	6500
Dividend(319)	5500
Utility Expense (690) A/c	600
Total	220500	220500