Karla Tanner opened a Web consulting business called Linkworks and completed the following transactions in its first month of operations. April 1 Tanner invested $110,000 cash along with office equipment valued at $26,400 in the company in exchange for common stock. April 2 April 3 The company prepaid $7,200 cash for 12 months' rent for office space. Hint: Debit Prepaid Rent for $7,200. The company made credit purchases for $13,200 in office equipment and $2,640 in office supplies. Payment is due within 10 days. The company completed services for a client and immediately received $2,000 cash. The company completed a $8,800 project for a client, who must pay within 30 days. The company paid $15,840 cash to settle the account payable created on April 3. The company paid $6,000 cash for the premium on a 12-month prepaid insurance policy. Hint: Debit Prepaid Insurance for $6,000. The company received $7,040 cash as partial payment for the work completed on April 9. The company completed work for another client for $2,640 on credit. The company paid a $6,200 cash dividend. The company purchased $880 of additional office supplies on credit. The company paid $700 cash for this month's utility bill. April 6 April 9 April 13 April 19 April 22 April 25 April 28 April 29 April 30 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 April 30.
Karla Tanner opened a Web consulting business called Linkworks and completed the following transactions in its first month of operations. April 1 Tanner invested $110,000 cash along with office equipment valued at $26,400 in the company in exchange for common stock. April 2 April 3 The company prepaid $7,200 cash for 12 months' rent for office space. Hint: Debit Prepaid Rent for $7,200. The company made credit purchases for $13,200 in office equipment and $2,640 in office supplies. Payment is due within 10 days. The company completed services for a client and immediately received $2,000 cash. The company completed a $8,800 project for a client, who must pay within 30 days. The company paid $15,840 cash to settle the account payable created on April 3. The company paid $6,000 cash for the premium on a 12-month prepaid insurance policy. Hint: Debit Prepaid Insurance for $6,000. The company received $7,040 cash as partial payment for the work completed on April 9. The company completed work for another client for $2,640 on credit. The company paid a $6,200 cash dividend. The company purchased $880 of additional office supplies on credit. The company paid $700 cash for this month's utility bill. April 6 April 9 April 13 April 19 April 22 April 25 April 28 April 29 April 30 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 April 30.
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 5PA: Inner Resources Company started its business on April 1, 2019. The following transactions occurred...
Related questions
Question
Question 5
Transcribed Image Text:Karla Tanner opened a Web consulting business called Linkworks and completed the following transactions in its first month of
operations.
April 1
Tanner invested $110,000 cash along with office equipment valued at $26,400 in the company in exchange for
common stock.
April 2
April 3
The company prepaid $7,200 cash for 12 months' rent for office space. Hint: Debit Prepaid Rent for $7,200.
The company made credit purchases for $13,200 in office equipment and $2,640 in office supplies. Payment is
due within 10 days.
April 6
April 9
April 13
April 19
The company completed services for a client and immediately received $2,000 cash.
The company completed a $8,800 project for a client, who must pay within 30 days.
The company paid $15,840 cash to settle the account payable created on April 3.
The company paid $6,000 cash for the premium on a 12-month prepaid insurance policy. Hint: Debit Prepaid
Insurance for $6,000.
The company received $7,040 cash as partial payment for the work completed on April 9.
The company completed work for another client for $2,640 on credit.
The company paid a $6,200 cash dividend.
The company purchased $880 of additional office supplies on credit.
The company paid $700 cash for this month's utility bill.
April 22
April 25
April 28
April 29
April 30
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 April 30.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Prepare a trial balance as of April 30.
LINKWORKS
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Prepare a trial balance as of April 30.
LINKWORKS
Trial Balance
April 30
Debit
Credit
700
Cash
Utilities expense
700
Total
$
700
2$
700
< Required 2
Required 3>
Expert Solution
Step 1 Introduction
The journal entries are prepared to keep the record of day to day transactions of the business.
The ledger is prepared to post the specific account balance and find the ending balance of each account to prepare trial balance.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning