Ken Hughes opened a web consulting business called Security First and recorded the following transactions in its first month of operations.Make the following adjustments:a) On April 2, the company prepaid $10,800 cash for twelve months' rent for office space.b) The balance in Prepaid insurance represents the premium paid for a 12-month insurance policy the policy's coverage began on April 1.c) Office supplies on hand as of April 30 total $1,700.Apr. 1 Hughes invests $89,000 cash along with office equipment valued at $37,500 in the company.Apr. 2 The company prepaid $10,800 cash for twelve 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 $8,500 in office equipment and $4,100 in office supplies. Payment is due within 10 days.Apr. 6 The company completed services for a client and immediately received $6,100 cash.Apr. 9 The company completed a $17,500 project for a client, who must pay within 30 days.Apr. 13 The company paid $12,600 cash to settle the account payable created on April 3.Apr. 19 The company paid $3,120 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 $4,500 cash as partial payment for the work completed on April 9.Apr. 25 The company completed work for another client for $6,200 on credit.Apr. 28 Hughes withdrew $6,200 cash from the company for personal use.Apr. 29 The company purchased $2,900 of additional office supplies on credit.Apr. 30 The company paid $3,300 cash for this month’s utility bill. Make the following adjustments:a) On April 2, the company prepaid $10,800 cash for twelve months' rent for office space.b) The balance in Prepaid insurance represents the premium paid for a 12-month insurance policy the policy's coverage began on April 1.c) Office supplies on hand as of April 30 total $1,700.

Journal Entry is the primary step to record the transaction in the books of accounts. The increase…

Answered: Ken Hughes opened a web consulting…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 5PB: Review the following transactions and prepare any necessary journal entries. A. On January 5, Bunnet...

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Ken Hughes opened a web consulting business called Security First and recorded the following transactions in its first month of operations.

Make the following adjustments:

a) On April 2, the company prepaid $10,800 cash for twelve months' rent for office space.
b) The balance in Prepaid insurance represents the premium paid for a 12-month insurance policy the policy's coverage began on April 1.
c) Office supplies on hand as of April 30 total $1,700.

Apr.	1	Hughes invests $89,000 cash along with office equipment valued at $37,500 in the company.
Apr.	2	The company prepaid $10,800 cash for twelve 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 $8,500 in office equipment and $4,100 in office supplies. Payment is due within 10 days.
Apr.	6	The company completed services for a client and immediately received $6,100 cash.
Apr.	9	The company completed a $17,500 project for a client, who must pay within 30 days.
Apr.	13	The company paid $12,600 cash to settle the account payable created on April 3.
Apr.	19	The company paid $3,120 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 $4,500 cash as partial payment for the work completed on April 9.
Apr.	25	The company completed work for another client for $6,200 on credit.
Apr.	28	Hughes withdrew $6,200 cash from the company for personal use.
Apr.	29	The company purchased $2,900 of additional office supplies on credit.
Apr.	30	The company paid $3,300 cash for this month’s utility bill.

Make the following adjustments:

a) On April 2, the company prepaid $10,800 cash for twelve months' rent for office space.
b) The balance in Prepaid insurance represents the premium paid for a 12-month insurance policy the policy's coverage began on April 1.
c) Office supplies on hand as of April 30 total $1,700.

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