Required 1. Prepare general journal entries to record these transactions (use the account titles listed in part 2). 2. Open the following ledger accounts their account numbers are in parentheses (use the balance col- umn format): 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). Post the journal entries from part 1 to the ledger accounts and enter the balance after each posting. 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
Problem 2-3A
transactions in March.
Preparing and posting
journal entries; preparing a
Brooks invested $150,000 cash along with $22,000 in office equipment in the company in
exchange for common stock.
2 The company prepaid $6,000 cash for six months' rent for an office. Hint: Debit Prepaid Rent
for $6,000.
The company made credit purchases of office equipment for $3,000 and office supplies for
$1,200. Payment is due within 10 days.
6 The company completed services for a client and immediately received $4,000 cash.
9.
Mar. 1
trial balance
C3 C4 A1 P1 P2
3
The company completed a $7,500 project for a client, who must pay within 30 days.
12
The company paid $4,200 cash to settle the account payable created on March 3.
19 The company paid $5,000 cash for the premium on a 12-month insurance policy. Hint: Debit
Prepaid Insurance for $5,000.
The company received $3,500 cash as partial payment for the work completed on March 9.
25 The company completed work for another client for $3,820 on credit.
The company paid a $5,100 cash dividend.
30
22
29
The company purchased $600 of additional office supplies on credit.
31
The company paid $500 cash for this month's utility bill.
Required
1. Prepare general journal entries to record these transactions (use the account titles listed in part 2).
2. Open the following ledger accounts-their account numbers are in parentheses (use the balance col-
umn format): 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). Post the journal entries from
part 1 to the ledger accounts and enter the balance after each posting.
3. Prepare a trial balance as of the end of March.
Check (2) Ending
balances: Cash, $136,700;
Accounts Receivable, $7,820;
Accounts Payable, $600
(3) Total debits, $187,920
Transcribed Image Text:Denzel Brooks opened a web consulting business called Venture Consultants and completed the following Problem 2-3A transactions in March. Preparing and posting journal entries; preparing a Brooks invested $150,000 cash along with $22,000 in office equipment in the company in exchange for common stock. 2 The company prepaid $6,000 cash for six months' rent for an office. Hint: Debit Prepaid Rent for $6,000. The company made credit purchases of office equipment for $3,000 and office supplies for $1,200. Payment is due within 10 days. 6 The company completed services for a client and immediately received $4,000 cash. 9. Mar. 1 trial balance C3 C4 A1 P1 P2 3 The company completed a $7,500 project for a client, who must pay within 30 days. 12 The company paid $4,200 cash to settle the account payable created on March 3. 19 The company paid $5,000 cash for the premium on a 12-month insurance policy. Hint: Debit Prepaid Insurance for $5,000. The company received $3,500 cash as partial payment for the work completed on March 9. 25 The company completed work for another client for $3,820 on credit. The company paid a $5,100 cash dividend. 30 22 29 The company purchased $600 of additional office supplies on credit. 31 The company paid $500 cash for this month's utility bill. Required 1. Prepare general journal entries to record these transactions (use the account titles listed in part 2). 2. Open the following ledger accounts-their account numbers are in parentheses (use the balance col- umn format): 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). Post the journal entries from part 1 to the ledger accounts and enter the balance after each posting. 3. Prepare a trial balance as of the end of March. Check (2) Ending balances: Cash, $136,700; Accounts Receivable, $7,820; Accounts Payable, $600 (3) Total debits, $187,920
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