Deb Kelley opens a web consulting business called Smart Deals and completes the following transactions in its first month of operations. Prepare journal entries for each transaction and identify the financial statement impact of each entry. The financial statements are automatically generated based on the journal entries recorded. Apr. 1 Kelley invested $110,000 cash along with office equipment valued at $31,000 in the company. Apr. 2 The company prepaid $15,000 cash for 12 months' rent for office space. The company's policy is record prepaid expenses in balance sheet accounts. Apr. 3 The company made credit purchases for $9,000 in office equipment and $4,600 in office supplies. Payment is due within 10 days. Apr. 6 The company completed services for a client and immediately received $7,000 cash. Apr. 9 The company completed a $11,000 project for a client, who must pay within 30 days. Apr. 13 The company paid $13,600 cash to settle the account payable created on April 3. Apr. 19 The company paid $4,800 cash for the premium on a 12- month insurance policy. The company's policy is record prepaid expenses in balance sheet accounts. Apr. 22 The company received $6,600 cash as partial payment for the work completed on April 9. Apr. 25 The company completed work for another client for $4,900 on credit. Apr. 28 Kelley withdrew $5,700 cash from the company for personal use. Apr. 29 The company purchased $1,600 of additional office supplies on credit. Apr. 30 The company paid $2,300 cash for this month’s utility bill. Create a General Journal
Deb Kelley opens a web consulting business called Smart Deals and
completes the following transactions in its first month of operations.
Prepare
statement impact of each entry.
The financial statements are automatically generated based on the
journal entries recorded.
Apr. 1 Kelley invested $110,000 cash along with office
equipment valued at $31,000 in the company.
Apr. 2 The company prepaid $15,000 cash for 12 months' rent for
office space. The company's policy is record prepaid
expenses in
Apr. 3 The company made credit purchases for $9,000 in office
equipment and $4,600 in office supplies. Payment is due
within 10 days.
Apr. 6 The company completed services for a client and
immediately received $7,000 cash.
Apr. 9 The company completed a $11,000 project for a client,
who must pay within 30 days.
Apr. 13 The company paid $13,600 cash to settle the account
payable created on April 3.
Apr. 19 The company paid $4,800 cash for the premium on a 12-
month insurance policy. The company's policy is record
prepaid expenses in balance sheet accounts.
Apr. 22 The company received $6,600 cash as partial payment for
the work completed on April 9.
Apr. 25 The company completed work for another client for $4,900
on credit.
Apr. 28 Kelley withdrew $5,700 cash from the company for
personal use.
Apr. 29 The company purchased $1,600 of additional office
supplies on credit.
Apr. 30 The company paid $2,300 cash for this month’s utility
bill.
Create a General Journal
Create a General Ledger
Create a
Create a Income Statement
Create a Statement of Owners Equity
Create a Balance Sheet
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
