Question

Problem 2-1A Preparing and posting journal entries; preparing a trial balance LO C3, C4, A1, P1, P2 Karla Tanner opened a Web consulting business called Linkworks and completed the following transactions in its first month of operations. 1 Tanner invested $115, 000 cash along with office equipment valued at $27,600 in the company in exchange for April common stock. 2 The company prepaid $7,200 cash for 12 months' rent for office space. Hint: Debit Prepaid Rent for $7,200. 3 The company made credit purchases for $13,800 in office equipment and $2,760 in office supplies. Payment is due within 10 days. 6 The company completed services for a client and immediately received $2,000 cash. 9 The company completed a $9,200 project for a client, who must pay within 30 days. 13 The company paid $16,560 cash to settle the account payable created on April 3. 19 The company paid $6,000 cash for the premium on a 12-month insurance policy. Hint: Debit Prepaid Insurance for $6,000. 22 The company received $7,360 cash as partial payment for the work completed on April 9. 25 The company completed work for another client for $2,640 on credit. 28 The company paid a $6,200 cash dividend. 29 The company purchased $920 of additional office supplies on credit. 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. Complete this question by entering your answers in the tabs below. Required 2 Required 1 Required 3

Answer 1

LINKWORKS
Journal Entries
Date	Account's tittle	Debit $	Credit $
1-Apr	Cash	115,000
	Office Equipment	27,600
	Common Stock		142,600
2-Apr	Prepaid Rent	7,200
	Cash		7,200
3-Apr	Office Equipment	13,800
	Office Supplies	2,760
	Accounts Payable		16,560
6-Apr	Cash	2,000
	Service Revenue		2,000
9-Apr	Accounts Receivable	9,200
	Service Revenue		9,200
13-Apr	Accounts Payable	16,560
	Cash		16,560
19-Apr	Prepaid Insurance	6,000
	Cash		6,000
22-Apr	Cash	7,360
	Accounts Receivable		7,360
25-Apr	Accounts Receivable	2,640
	Service Revenue		2,640
28-Apr	Dividend	6,200
	Cash		6,200
29-Apr	Office Supplies	920
	Accounts Payable		920
30-Apr	Utilities Expense	700
	Cash		700

LINKWORKS
Cash
Date	Account's tittle	Debit $	Account's tittle	Credit $
1-Apr	Common Stock	115,000
2-Apr			Prepaid Rent	7,200
6-Apr	Service Revenue	2,000
13-Apr			Accounts Payable	16,560
19-Apr			Prepaid Insurance	6,000
22-Apr	Accounts Receivable	7,360
28-Apr			Dividend	6,200
30-Apr			Utilities Expense	700
			Ending balance	87,700
	TOTAL	124,360	TOTAL	124,360
Common Stock
Date	Account's tittle	Debit $	Account's tittle	Credit $
1-Apr			Cash	115,000
1-Apr			Office Supplies	27,600
30-Apr	Ending balance	142,600
	TOTAL	142,600	TOTAL	142,600
Office Equipment
Date	Account's tittle	Debit $	Account's tittle	Credit $
1-Apr	Common Stock	27,600
3-Apr	Accounts Payable	13,800
30-Apr			Ending balance	41,400
	TOTAL	41,400	TOTAL	41,400
Office Supplies
Date	Account's tittle	Debit $	Account's tittle	Credit $
3-Apr	Accounts Payable	2,760
29-Apr	Accounts Payable	920
30-Apr			Ending balance	3,680
	TOTAL	3,680	TOTAL	3,680
Prepaid Rent
Date	Account's tittle	Debit $	Account's tittle	Credit $
2-Apr	Cash	7,200
30-Apr			Ending balance	7,200
	TOTAL	7,200	TOTAL	7,200
Prepaid Insurance
Date	Account's tittle	Debit $	Account's tittle	Credit $
19-Apr	Cash	6,000
30-Apr			Ending balance	6,000
	TOTAL	6,000	TOTAL	6,000
Accounts Receivable
Date	Account's tittle	Debit $	Account's tittle	Credit $
9-Apr	Service Revenue	9,200
22-Apr			Cash	7,360
25-Apr	Service Revenue	2,640
30-Apr			Ending balance	4,480
	TOTAL	11,840	TOTAL	11,840
Accounts Payable
Date	Account's tittle	Debit $	Account's tittle	Credit $
3-Apr			Office Equipment	13,800
3-Apr			Office Supplies	2,760
13-Apr	Cash	16,560
29-Apr			Office Supplies	920
30-Apr	Ending balance	920
	TOTAL	17,480	TOTAL	17,480
Service Revenue
Date	Account's tittle	Debit $	Account's tittle	Credit $
6-Apr			Cash	2,000
9-Apr			Accounts Receivable	9,200
25-Apr			Accounts Receivable	2,640
30-Apr	Ending balance	13,840
	TOTAL	13,840	TOTAL	13,840
Dividends
Date	Account's tittle	Debit $	Account's tittle	Credit $
28-Apr	Cash	6,200
30-Apr			Ending balance	6,200
	TOTAL	6,200	TOTAL	6,200
Utilities Expense
Date	Account's tittle	Debit $	Account's tittle	Credit $
30-Apr	Cash	700
30-Apr			Ending balance	700
	TOTAL	700	TOTAL	700

LINKWORKS
Trial Balance
30-Apr
	Account's tittle	Debit $	Credit $
1	Cash	87,700
2	Office Equipment	41,400
3	Office Supplies	3,680
4	Prepaid Rent	7,200
5	Prepaid Insurance	6,000
6	Accounts Receivable	4,480
7	Accounts Payable		920
8	Common Stock		142,600
9	Service Revenue		13,840
10	Utilities Expense	700
11	Dividends	6,200
	TOTAL	157,360	157,360