Reference no: EM132476988
Karla Tanner opened a web consulting business called Linkworks and completed the following transactions in its first month of operations.
Point 1: Apr. 1 Tanner invested $80,000 cash along with office equipment valued at $26,000 in the company.
Point 2: 2 The company prepaid $9,000 cash for 12 months' rent for office space. Hint: Debit Prepaid Rent for $9,000.
Point 3: The company made credit purchases for $8,000 in office equipment and $3,600 in office supplies. Payment is due within 10 days. The company completed services for a client and immediately received $4,000 cash.
Point 4: 13 The company completed a $6.000 project for a client, who must pay within 30 days.
Point 5: 19 The company paid $1 1.600 cash to settle the account payable created on April 3.
Point 6: The company paid $2,400 cash for the premium on a 12-month insurance policy. Hint: Debit Prepaid Insurance for $2,40
Point 7: 22 The company received $4,400 cash as partial payment for the work completed on April 9.
Point 8: 25 The company completed work for another client for $2,890 on credit.
Point 9: 28 Tanner withdrew $5.500 cash from the company for personal use.
Point 10: 29 The company purchased $600 of additional office supplies on credit.
Point 11: 30 The company paid $435 cash for this month's utility bill.
Required
Question 1. Prepare general journal entries to record these transactions
Question 2. Open the following ledger accounts-their account numbers are in parentheses (use the balance column format):
Cash (101);
Accounts Receivable (106);
Office Supplies (124);
Prepaid Insurance (128);
Prepaid Rent (131);
Office Equipment (163);
Accounts Payable (201);
K. Tanner, Capital (301);
K. Tanner, Withdrawals (302);
Services Revenue (403); and Utilities
Expense (690).
- Post journal entries from part 1 to the ledger accounts and enter the balance after each posting.
Check (2) Ending balances: Cash, $59.465: Accounts Receivable, $4.490, Accounts Payable, $600
Question 3. Prepare a trial balance as of April 30.
(3) Total debits, $119,490
Problem Preparing and posting journal entries; preparing a trial balance C3 C4 A1 P1 P2 Aracel Engineering completed the following transactions in the month of June