Title Number Cash 101 Accounts Receivable 105 Office Supplies 115 Prepaid Insurance 120 Prepaid Rent 125 Office Equipment 130 Accounts Payable 201 G. Adams, Capital 301 G. Adams, Withdrawals 305 Services Revenue 401 Utilities Expense 501 The following transactions occurred in the month of January: Jan. 1 Adams invested $200,000 cash and $25,000 in office equipment in the company. Jan. 2 The company prepaid $5,600 cash for 12 months rent for an office. Jan. 3 The company purchased on credit $15,000 in office equipment and $2,000 in office supplies. Payment is due in 10 days. Jan. 6 Completed services for a client and collected $10,000 cash. Jan. 9 Completed services for a client worth $5,000. The client is required to pay within 30 days. Jan. 13 Paid $17,000 to settle an account payable. Jan. 19 Paid $7,000 cash for the premium on a 12 month insurance policy. Required: Prepare the necessary journal entries for the transactions in January. Post the journal entries to the T-Accounts. Prepare a Trial Balance for the end of January. Title Number Cash 101 Accounts Receivable 105 Office Supplies 115 Prepaid Insurance 120 Prepaid Rent 125 Office Equipment 130 Accounts Payable 201 G. Adams, Capital 301 G. Adams, Withdrawals 305 Services Revenue 401 Utilities Expense 501 The following transactions occurred in the month of January: Jan. 1 Adams invested $200,000 cash and $25,000 in office equipment in the company. Jan. 2 The company prepaid $5,600 cash for 12 months rent for an office. Jan. 3 The company purchased on credit $15,000 in office equipment and $2,000 in office supplies. Payment is due in 10 days. Jan. 6 Completed services for a client and collected $10,000 cash. Jan. 9 Completed services for a client worth $5,000. The client is required to pay within 30 days. Jan. 13 Paid $17,000 to settle an account payable. Jan. 19 Paid $7,000 cash for the premium on a 12 month insurance policy. Required: Prepare the necessary journal entries for the transactions in January. Post the journal entries to the T-Accounts. Prepare a Trial Balance for the end of January.

Title Number Cash 101 Accounts Receivable 105 Office Supplies 115 Prepaid Insurance 120 Prepaid Rent 125 Office Equipment 130 Accounts Payable 201 G. Adams, Capital 301 G. Adams, Withdrawals 305 Services Revenue 401 Utilities Expense 501 The following transactions occurred in the month of January: Jan. 1 Adams invested $200,000 cash and $25,000 in office equipment in the company. Jan. 2 The company prepaid $5,600 cash for 12 months rent for an office. Jan. 3 The company purchased on credit $15,000 in office equipment and $2,000 in office supplies. Payment is due in 10 days. Jan. 6 Completed services for a client and collected $10,000 cash. Jan. 9 Completed services for a client worth $5,000. The client is required to pay within 30 days. Jan. 13 Paid $17,000 to settle an account payable. Jan. 19 Paid $7,000 cash for the premium on a 12 month insurance policy. Required: Prepare the necessary journal entries for the transactions in January. Post the journal entries to the T-Accounts. Prepare a Trial Balance for the end of January. Title Number Cash 101 Accounts Receivable 105 Office Supplies 115 Prepaid Insurance 120 Prepaid Rent 125 Office Equipment 130 Accounts Payable 201 G. Adams, Capital 301 G. Adams, Withdrawals 305 Services Revenue 401 Utilities Expense 501 The following transactions occurred in the month of January: Jan. 1 Adams invested $200,000 cash and $25,000 in office equipment in the company. Jan. 2 The company prepaid $5,600 cash for 12 months rent for an office. Jan. 3 The company purchased on credit $15,000 in office equipment and $2,000 in office supplies. Payment is due in 10 days. Jan. 6 Completed services for a client and collected $10,000 cash. Jan. 9 Completed services for a client worth $5,000. The client is required to pay within 30 days. Jan. 13 Paid $17,000 to settle an account payable. Jan. 19 Paid $7,000 cash for the premium on a 12 month insurance policy. Required: Prepare the necessary journal entries for the transactions in January. Post the journal entries to the T-Accounts. Prepare a Trial Balance for the end of January.

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter5: Operating Activities: Purchases And Cash Payments

Section: Chapter Questions

Problem 4.5C

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