IThe following information applies to the questions displayed below.J Denzel Bro

Question

IThe following information applies to the questions displayed below.J Denzel Brooks opens a Web consulting business called Venture Consultants and completes the following transactions in March. March 1 Brooks invested $160,000 cash along with $29,000 in office equipment in exchange for common stock. 2 The company prepaid $9,500 cash for six months' rent for an office. (Hint: Debit Prepaid Rent for $9,500) 3 The company made credit purchases of office equipment for $4700 and office supplies for $2100. Payment is due within 10 days. 6 The company completed services for a client and immediately received $4,500 cash. 9 The company completed a $9.700 project for a client, who must pay within 30 days. 12 The company paid $6.800 cash to settle the account payable created on March 3. 19 The company paid $4.600 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $4,600) 22 The company received $3.900 cash as partial payment for the work completed on March 9. 25 The company completed work for another client for $4,830 on credit. 29 The company paid $4.600 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.

Explanation / Answer

Journal Entries:

Date Accounts Titles and explanation Ref. Debit $ Credit $ March 1 Cash 101 160000 Officer Equipment 163 29000 Common Stock 307 189000 2 Prepaid Rent 131 9500 cash 101 9500 3 Office Equipment 163 4700 Office Supplies 124 2100 Accounts Payable 201 6800 6 Cash 101 4500 Service Revenue 403 4500 9 Accounts Receivable 106 9700 Service Revenue 403 9700 12 Accounts Payable 201 6800 Cash 101 6800 19 Prepaid Insurance 128 4600 cash 101 4600 22 Cash 101 3900 Accounts Receivable 106 3900 25 Accounts Receivable 106 4830 Service Revenue 403 4830 29 Dividend 319 4600 Cash 101 4600 30 Office Supplies 124 600 Accounts Payable 201 600 31 Utility Expense 690 500 Cash 101 500

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