Question

ILI SETAK hesscalled Linkworks and completed the following transac- Problem 2-1A Preparing and posting journal entries preparing a trial balance C3 C4 A1 P1 P2 Karla Tanner opened a web consulting business called in tions in its first month of operations Apr. Tanner vid 580,000 cash along with office 2 The company prepaid $9.000 12h Rent for 59.000 3 The company made credit cunch SR.000 in office equip plies. Payment is due within 10 days 6 The company completed ser 9 The company completed 16. roiect for a client, whoms 15 The company paid $11.6021ch to settle the account payable CTC 19 The company paid $2.400 cash for the Prepaid Insurance for $2.400. along with office equipment valued at $20.00 $26.000 in the company months' rent for office space Hint Debit Prepaid SR.000 in office equipment and $3,600 in office sup- pleted services for a client and immediately received S4,000 cash. project for a clicat, who must pay within 30 days o n April 3. y paid $2,400 cash for the premium on a 12- month insurance policy. Fine 26 29 30 Required The company received $4,400 cash as partial payment for the work completed on The company completed work for another client for $2.890 on credit. Tanner withdrew S5,500 cash from the company for personal use. The company purchased of additional office supplies on credit The company paid $435 cash for this month's utility bill. Check 21 Ending balances Cash $59.465 Accounts Recovable 4.490 Accounts Payable, $500 1. Prepare general journal entries to record these transactions is account titles listed in part 2) 2. Open the following ledger accounts their account numbers are in parentheses (use the balance col- in format) Cash (101): Accounts Receivable (106): Office Supplies (124). Prepaid Insurance (128) Prepaid Rent (131): Office Equipment (161): Accounts Payable (201), K, Tanner, Capital (301): K Tanner, Withdrawals (302); Services Revenue (403) and Utilities Expense (690). Postjournal entries from part I to the ledger accounts and enter the balance after each posting. 3. Prepare a trial balance as of April 30. (3) Total debts, 5119.490 ner in the month of June.

Answer 1

Credit $ 1,06,000 $ 9,000 $ 11,600 $ 4,000 $ 6,000 Date Accounts Title Debit Apr-01 Cash $ 80,000 Equipment $ 26,000 K.Tanner Capital Apr-02 Prepaid Rent $ 9,000 Cash Apr-03 Equipment $ 8,000 Supplies $ 3,600 Accounts payable Apr-06 Cash $ 4,000 Service Revenue Apr-09 Accounts receivable $ 6,000 Service Revenue Apr-13 Accounts payable $ 11,600 Cash Apr-19 Prepaid Insurance $ 2,400 Cash Apr-22 Cash $ 4,400 Accounts receivable Apr-25 Accounts receivable $ 2,890 Service Revenue Apr-28 K.Tanner Withdrawall $ 5,500 Cash Apr-29 Supplies 600 Accounts payable Apr-30 Utility Expenses $ 435 Cash $ 11,600 $ 2,400 $ 4,400 $ 2,890 $ 5,500 $ 600 $ 435

K.Tanner Capital Service Revenue Accounts Receivable Cash $ 80,000 Prepaid Rent $ 4,000 Accounts payable $ 4,400 Prepaid Insurance K.Tanner Withdrawal Utility Expenses End.Bal $ 88,400 Equipment $ 26,000 End.Bal $ 8,000 $ 34,000 $ 9,000 $ 11,600 $ 2,400 $ 5,500 $ 435 $ 59,465 $ 88,400 Accounts Receivable Service Revenue $ 6,000 Cash $ 4,400 Service Revenue $ 2,890 End.Bal $ 4,490 $ 8,890 $ 8,890 Service Revenue Income Statement $12,890 Cash $ 4,000 Accounts Receivable $ 6,000 Accounts Receivable $ 2,890 $12,890 $ 12,890 Prepaid Insurance Cash $ 2,400 End.Bal $ 2,400 $ 2,400 $ 2,400 K.Tanner Withdrawal Cash $ 5,500 K.Tanner Capital $ 5,500 $ 5,500 $ 5,500 $ 34,000 K.Tanner Capital Accounts payable $ 34,000 K.Tanner Capital K.Tanner Withdrawal $ 5,500 Cash End.Bal $ 1,00,500 Equipment $ 1,06,000 Prepaid Rent Cash $ 9,000 End.Bal $ 9,000 $ 80,000 $ 26,000 $ 1,06,000 Cash Utility Expenses $ 435 Income statement $ 435 $ $ 435 435 $ $ 9,000 9,000 $ 8,600 Cash End.Bal Accounts payable $ 11,600 Equipment $ 600 Supplies Supplies $ 12,200 Accounts payable Accounts payable $ $ $ $ 8,000 3,600 600 12,200 Supplies $ 8,000 End.Bal $ 600 $ 8,600 $ 8,600

Credit Trail Balance Account Titles Debit | Accounts receivable $ 4,490 Cash $ 59,465 Prepaid Insurance $ 2,400 Prepaid Rent $ 9,000 Supplies $ 4,200 Equipment $ 34,000 K.Tanner Capital Accounts payable Service Revenue Utility Expenses $ 435 $ 1,13,990 $ 1,00,500 600 12,890 $ $ 1,13,990
The amount used for personal purpose by K.Tanner is adjusted in his Capital account.