Denzel Brooks opened a Web consulting business called Venture Consultants and completed the following transactions...
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Denzel Brooks opened a Web consulting business called Venture Consultants and completed the following transactions in March.
March 1
Brooks invested $165,000 cash along with $23,000 in office equipment in the company in exchange for common stock.
March 2
The company prepaid $6,000 cash for six months' rent for an office. Hint: Debit Prepaid Rent for $6,000.
March 3
The company made credit purchases of office equipment for $2,800 and office supplies for $2,000. Payment is due within 10 days.
March 6
The company completed services for a client and immediately received $6,000 cash.
March 9
The company completed a $9,500 project on credit for a client, who must pay within 30 days.
March 12
The company paid $4,800 cash to settle the account payable created on March 3.
March 19
The company paid $8,000 cash for the premium on a 12-month insurance policy. Hint: Debit Prepaid Insurance for $8,000.
March 22
The company received $5,000 cash as partial payment for the work completed on March 9.
March 25
The company completed work for another client for $3,990 on credit.
March 29
The company paid a $6,700 cash dividend.
March 30
The company purchased $800 of additional office supplies on credit.
March 31
The company paid $400 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 the end of March.
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