Denzel Brooks opened a Web consulting business called Venture Consultants and completed the following transactions in March. March 1 Brooks invested $165,000 cash along with $22,000 in office equipment in the company. 2 The company prepaid $8,000 cash for six months' rent for an office. Hint: Debit Prepaid Rent for $8,000. 3 The company made credit purchases of office equipment for $5,100 and office supplies for $2,000. Payment is due within 10 days. 6 The company completed services for a client and immediately received $5,500 cash. 9 The company completed a $8,500 project for a client, who must pay within 30 days. 12 The company paid $7,100 cash to settle the account payable created on March 3. 19 The company paid $6,200 cash for the premium on a 12-month insurance policy. Hint: Debit Prepaid Insurance for $6,200. 22 The company received $4,000 cash as partial payment for the work completed on March 9. 25 The company completed work for another client for $5,200 on credit. 29 Brooks withdrew $6,300 cash from the company for personal use. 30 The company purchased $500 of additional office supplies on credit. 31 The company paid $1,400 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); D. Brooks, Capital (301); D. Brooks, Withdrawals (302); 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Denzel Brooks opened a Web consulting business called Venture Consultants and completed the following transactions in March.

March	1	Brooks invested $165,000 cash along with $22,000 in office equipment in the company.
	2	The company prepaid $8,000 cash for six months' rent for an office. Hint: Debit Prepaid Rent for $8,000.
	3	The company made credit purchases of office equipment for $5,100 and office supplies for $2,000. Payment is due within 10 days.
	6	The company completed services for a client and immediately received $5,500 cash.
	9	The company completed a $8,500 project for a client, who must pay within 30 days.
	12	The company paid $7,100 cash to settle the account payable created on March 3.
	19	The company paid $6,200 cash for the premium on a 12-month insurance policy. Hint: Debit Prepaid Insurance for $6,200.
	22	The company received $4,000 cash as partial payment for the work completed on March 9.
	25	The company completed work for another client for $5,200 on credit.
	29	Brooks withdrew $6,300 cash from the company for personal use.
	30	The company purchased $500 of additional office supplies on credit.
	31	The company paid $1,400 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); D. Brooks, Capital (301); D. Brooks, Withdrawals (302); 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.

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