Denzel Brooks opened a Web consulting business called Venture Consultants and completed the following transactions in March. March 1 Brooks invested $200,000 cash along with $20,000 in office equipment in the company. 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 $2,600 and office supplies for $1,200. Payment is due within 10 days. 6 The company completed services for a client and immediately received $6,000 cash. 9 The company completed a $7,700 project for a client, who must pay within 30 days. 12 The company paid $3,800 cash to settle the account payable created on March 3. 19 The company paid $7,700 cash for the premium on a 12-month insurance policy. Hint: Debit Prepaid Insurance for $7,700. 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 $3,890 on credit. 29 Brooks withdrew $7,400 cash from the company for personal use. 30 The company purchased $600 of additional office supplies on credit. 31 The company paid $1,300 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.
Denzel Brooks opened a Web consulting business called Venture Consultants and completed the following transactions in March. March 1 Brooks invested $200,000 cash along with $20,000 in office equipment in the company. 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 $2,600 and office supplies for $1,200. Payment is due within 10 days. 6 The company completed services for a client and immediately received $6,000 cash. 9 The company completed a $7,700 project for a client, who must pay within 30 days. 12 The company paid $3,800 cash to settle the account payable created on March 3. 19 The company paid $7,700 cash for the premium on a 12-month insurance policy. Hint: Debit Prepaid Insurance for $7,700. 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 $3,890 on credit. 29 Brooks withdrew $7,400 cash from the company for personal use. 30 The company purchased $600 of additional office supplies on credit. 31 The company paid $1,300 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Date
Debit
Credit
Balance
Date
Debit
Credit
Balance
131: Prepaid Rent
163: Office Equipment
Date
Debit
Credit
Balance
Date
Debit
Credit
Balance
201: Accounts Payable
301: D. Brooks, Capital
Date
Debit
Credit
Balance
Date
Debit
Credit
Balance
302: D. Brooks, Withdrawals
403: Services Revenue
Date
Debit
Credit
Balance
Date
Debit
Credit
Balance
690: Utilities Expense
Date
Debit
Credit
Balance
Transcribed Image Text:Denzel Brooks opened a Web consulting business called Venture Consultants and completed the following transactions in March.
March
1 Brooks invested $200,000 cash along with $20,000 in office equipment in the company.
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 $2,600 and office supplies for $1,200. Payment is due
within 10 days.
6 The company completed services for a client and immediately received $6,000 cash.
9 The company completed a $7,700 project for a client, who must pay within 30 days.
12 The company paid $3,800 cash to settle the account payable created on March 3.
19 The company paid $7,700 cash for the premium on a 12-month insurance policy. Hint: Debit Prepaid Insurance for
$7,700.
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 $3,890 on credit.
29 Brooks withdrew $7,400 cash from the company for personal use.
30 The company purchased $600 of additional office supplies on credit.
31 The company paid $1,300 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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