ACCOUNTING

Problem 2-2A Preparing and posting journal entries; preparing a trial balance LO C3, C4, A1, P1, P2

[The following information applies to the questions displayed below.]

Denzel Brooks opens a Web consulting business called Venture Consultants and completes the following transactions in March.
March 1 Brooks invested $150,000 cash along with $22,000 in office equipment in the company in exchange for common stock.
2 The company prepaid $6,000 cash for six months’ rent for an office. (Hint: Debit Prepaid Rent for $6,000.)
3 The company made credit purchases of office equipment for $3,000 and office supplies for $1,200. Payment is due within 10 days.
6 The company completed services for a client and immediately received $4,000 cash.
9 The company completed a $7,500 project for a client, who must pay within 30 days.
12 The company paid $4,200 cash to settle the account payable created on March 3.
19 The company paid $5,000 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $5,000.)
22 The company received $3,500 cash as partial payment for the work completed on March 9.
25 The company completed work for another client for $3,820 on credit.
29 The company paid $5,100 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.

 

Problem 2-3A Preparing and posting journal entries; preparing a trial balance LO C3, C4, A1, P1, P2

Karla Tanner opens a Web consulting business called Linkworks and completes the following transactions in its first month of operations.
 April 1 Tanner invests $80,000 cash along with office equipment valued at $26,000 in the company in exchange for common stock.
2 The company prepaid $9,000 cash for 12 months’ rent for office space. (Hint: Debit Prepaid Rent for $9,000.)
3 The company made credit purchases for $8,000 in office equipment and $3,600 in office supplies. Payment is due within 10 days.
6 The company completed services for a client and immediately received $4,000 cash.
9 The company completed a $6,000 project for a client, who must pay within 30 days.
13 The company paid $11,600 cash to settle the account payable created on April 3.
19 The company paid $2,400 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $2,400.)
22 The company received $4,400 cash as partial payment for the work completed on April 9.
25 The company completed work for another client for $2,890 on credit.
28 The company paid $5,500 cash in dividends.
29 The company purchased $600 of additional office supplies on credit.
30 The company paid $435 cash for this month’s utility bill.
Required:
1. Prepare general journal entries to record these transactions.

 

 

 

 

 

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