operations. April 1 Tanner invested $120,000 cash along with office equipment valued at $28,800 in the company in exchange for common stock. April 2 The company prepaid $7,200 cash for 12 months' rent for office space. Hint: Debit Prepaid Rent for $7,200. April 3 The company made credit purchases for $14,400 in office equipment and $2,880 in office supplies. Payment is due within 1 days. The company completed services for a client and immediately received $2,000 cash. April 6 April 9 April 13 The company completed a $9,600 project for a client, who must pay within 30 days. The company paid $17,280 cash to settle the account payable created on April 3. April 19 The company paid $6,000 cash for the premium on a 12-month prepaid insurance policy. Hint: Debit Prepaid Insurance for $6,000. April 22 The company received $7,680 cash as partial payment for the work completed on April 9. April 25 The company completed work for another client for $2,640 on credit. April 28 The company paid a $6,200 cash dividend. April 29 The company purchased $960 of additional office supplies on credit. April 30 The company paid $700 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); 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.
operations. April 1 Tanner invested $120,000 cash along with office equipment valued at $28,800 in the company in exchange for common stock. April 2 The company prepaid $7,200 cash for 12 months' rent for office space. Hint: Debit Prepaid Rent for $7,200. April 3 The company made credit purchases for $14,400 in office equipment and $2,880 in office supplies. Payment is due within 1 days. The company completed services for a client and immediately received $2,000 cash. April 6 April 9 April 13 The company completed a $9,600 project for a client, who must pay within 30 days. The company paid $17,280 cash to settle the account payable created on April 3. April 19 The company paid $6,000 cash for the premium on a 12-month prepaid insurance policy. Hint: Debit Prepaid Insurance for $6,000. April 22 The company received $7,680 cash as partial payment for the work completed on April 9. April 25 The company completed work for another client for $2,640 on credit. April 28 The company paid a $6,200 cash dividend. April 29 The company purchased $960 of additional office supplies on credit. April 30 The company paid $700 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); 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:operations.
April 1
April 2
April 3
April 6
April 9
April 13
April 19
Tanner invested $120,000 cash along with office equipment valued at $28,800 in the company in exchange for common stock.
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 $14,400 in office equipment and $2,880 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 $9,600 project for a client, who must pay within 30 days.
The company paid $17,280 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.
April 22
The company received $7,680 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.
April 25
April 28
April 29 The company purchased $960 of additional office supplies on credit.
April 30 The company paid $700 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); 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.
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