Question

Denzel Brooks opened a Web consulting business called Venture Consultants and completed the following transactions in March March 1 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.) 3 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 ellent and immediately received $6.000 cash. 9 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 12-month insurance policy. (Hint: Debit Prepaid Insurance for $5,000.) 22 The company received $3.500 each as partial payment for the work completed on March 9. 25 The ecpany completed work for another ellent for $3,820 on credit. 29 The company paid $5,100 cash in dividends. 30 The company purchased $600 of additional office supplies on credit. 31 The company paid $500 cash for this month's utility bill. ces Required: 1. Prepare general journal entries to record these transactions using the following ties: 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 the end of March Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Post the journal entries from part 1 to the ledger accounts 101: Cash Debat Credit 100: Accounts Receivable Debit Credit Date Balance < Prev 2014 Next >

Answer 1

	Venture Consultants
	General,Journal	Debit	Credit
01-Mar	Cash	$    1,50,000.00
	Office Equipment	$       22,000.00
	To Common Stock		$        1,72,000.00
	(Being amount of Brooks invested $150000 cash and $22000 of office Equipment in exchange for common stock)
02-Mar	Prepaid Rent	$        6,000.00
	To Cash		$             6,000.00
	Being amount of Prepaid Rent )
03-Mar	Office Equipment	$        3,000.00
	Office Supplies	$        1,200.00
	To Accounts Payable		$             4,200.00
	(Being amount of Office Equipment and Office Supplies purchased on credit)
06-Mar	Cash	$        4,000.00
	To Service Revenue		$             4,000.00
	(Being amount of Service Revenue)
09-Mar	Accounts Receivable	$        7,500.00
	To Service Revenue		$             7,500.00
	(Being amount of Service provided on credit)
12-Mar	Accounts Payable	$        4,200.00
	To Cash		$             4,200.00
	(Being amount of Accounts Payable paid)
19-Mar	Prepaid Insurance	$        5,000.00
	To Cash		$             5,000.00
	(Being amount of Prepaid Insurance)
22-Mar	Cash	$        3,500.00
	To Account Receivable		$             3,500.00
	(Being amount of cash received from customer)
25-Mar	Accounts Receivable	$        3,820.00
	To Service Revenue		$             3,820.00
	(Being amount of Service provided on credit)
29-Mar	Dividend	$        5,100.00
	To Cash		$             5,100.00
	(Being amount of Dividend Paid)
30-Mar	Office Supplies	$           600.00
	To Accounts Payable		$               600.00
	(Being amount of Additional Office Supplies Purchased on credit)
31-Mar	Utility Expense	$           500.00
	To Cash		$               500.00
	(Being amount of Utiltiy Expense)
2)	Cash   101
	Particular	Debit	Particular	Credit
	To Common Stock	$    1,50,000.00	By Prepaid rent	$       6,000.00
	To Service Revenue	$        4,000.00	By Accounts Payable	$       4,200.00
	To Accounts Receivable	$        3,500.00	By Prepaid Insurance	$       5,000.00
			By Dividend	$       5,100.00
			By Utility Expense	$          500.00
			By Balance C/d	$   1,36,700.00
	Total	$    1,57,500.00	Total	$   1,57,500.00
	Accounts Receivable
	Particular	Debit	Particular	Credit
	To Service Revenue	$        7,500.00	By Cash	$       3,500.00
	To Service Revenue	$        3,820.00	By Balance c/d	$       7,820.00
	Total	$       11,320.00	Total	$     11,320.00
	Accounts Payable
	Particular	Debit	Particular	Credit
	To Cash	$        4,200.00	By Office Equipment	$       3,000.00
	To Balance C/d	$           600.00	By Office Supplies	$       1,200.00
			By Office Supplies	$          600.00
	Total	$        4,800.00	Total	$       4,800.00
	Service Revenue
	Particular	Debit	Particular	Credit
	To Balance C/d	$       15,320.00	By Accounts Receivable	$       4,000.00
			By Account Receivable	$       7,500.00
			By Accounts Receivable	$       3,820.00
	Total	$       15,320.00	Total	$     15,320.00
	Prepaid Rent
	Particular	Debit	Particular	Credit
	To Cash	$        6,000.00	By Balance C/d	$       6,000.00
	Total	$        6,000.00	Total	$       6,000.00
	Prepaid Insurance
	Particular	Debit	Particular	Credit
	To Cash	$        5,000.00	By Balalnce c/d	$       5,000.00
	Total	$        5,000.00	Total	$       5,000.00
	Dividend
	Particular	Debit	Particular	Credit
	To Cash	$        5,100.00	By Balance C/d	$       5,100.00
		$        5,100.00	Total	$       5,100.00
	Utilities Expense
	Particular	Debit	Particular	Credit
	To Cash	$           500.00	By Balance C/d	$          500.00
		$           500.00	Total	$          500.00
	Office Equipment
	Particular	Debit	Particular	Credit
	To Common Stock	$       22,000.00	By Balance C/d	$     25,000.00
	To Accounts Payable	$        3,000.00
		$       25,000.00	Total	$     25,000.00
	Office Supplies
	Particular	Debit	Particular	Credit
	To Accounts Payable	$        1,200.00	By Balance b/d	$       1,800.00
	To Accounts Payable	$           600.00
		$        1,800.00	Total	$       1,800.00
	Common Stock
	Particular	Debit	Particular	Credit
	To Balance C/d	$    1,72,000.00	By Cash	$   1,50,000.00
			By Office Equipment	$     22,000.00
		$    1,72,000.00	Total	$   1,72,000.00
	Venture Consultants
	Unadjusting Trial Balance
	Account Title & Explanation	Debit	Credit
	Cash	$    1,36,700.00
	Accounts Receivable	$        7,820.00
	Office Supplies	$        1,800.00
	Prepaid Rent	$        6,000.00
	Prepaid Insurance	$        5,000.00
	Office Equipment	$       25,000.00
	Accounts Payable		$               600.00
	Common Stock		$        1,72,000.00
	Service Revenue		$           15,320.00
	Dividend	$        5,100.00
	Utilities Expense	$           500.00
	Total	$ 1,87,920.00	$      1,87,920.00