End of Chapter Assignments Saved Denzel Brooks opened a Web consulting business
ID: 2340501 • Letter: E
Question
End of Chapter Assignments Saved Denzel Brooks opened a Web consulting business called Venture Consultants and completes the following transactions in March. rooks invested $195, 000 cash along with $28, 000 in office equipment in the company 2 The company prepaid $8, 000 cash for six months' rent for an office. (Hint: Debit Pre 3 The company made credit purchases of office equipment for $4, 100 and office supplies for $2,000. Payment is due within 18 days 6 The company completed services for a client and immediately received $6,000 cash. 9 The company completed a $11, 000 project for a client, who must pay within 30 days 12 The company paid $6,100 cash to settle the account payable created on March 3 19 The company paid $4, 500 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $4, 500.) 22 The company received $4, e00 cash as partial payment for the work completed on March 9. 25 The company completed work for another client for $4, 860 on credit 29 Brooks withdrew $6, 5e0 cash from the company for personal use. 30 The company purchased $1,200 of additional office supplies on credit. 31 The company paid $1,300 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): D. Brooks, Capital (301; D. Brooks, Withdrawals (302); 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 belovw K Prev 5 of 5E NextExplanation / Answer
Solution:
Trial Balance
VENTURE CONSULTANTS
Trial Balance
March 31
Debit
Credit
Cash
($195,000 - 8000 + 6000 - 6100 - 4500 + 4000 - 6500 - 1300)
$178,600
Accounts Receivable (11000 - 4000)
$7,000
Prepaid Rent
$8,000
Prepaid Insurance
$4,500
Office Supplies (2000 + 1200)
$3,200
Office Equipment ($28,000+ 4100)
$32,100
Accounts Payable (4100 + 2000 - 6100 + 1200)
$1,200
Capital A/c - Denzel Brooks
$223,000
Drawing A/c - Denzel Brooks
$6,500
Service Revenue (6000 + 11000)
$17,000
Utility Expenses
$1,300
Totals
$241,200
$241,200
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VENTURE CONSULTANTS
Trial Balance
March 31
Debit
Credit
Cash
($195,000 - 8000 + 6000 - 6100 - 4500 + 4000 - 6500 - 1300)
$178,600
Accounts Receivable (11000 - 4000)
$7,000
Prepaid Rent
$8,000
Prepaid Insurance
$4,500
Office Supplies (2000 + 1200)
$3,200
Office Equipment ($28,000+ 4100)
$32,100
Accounts Payable (4100 + 2000 - 6100 + 1200)
$1,200
Capital A/c - Denzel Brooks
$223,000
Drawing A/c - Denzel Brooks
$6,500
Service Revenue (6000 + 11000)
$17,000
Utility Expenses
$1,300
Totals
$241,200
$241,200
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