Denzel Brooks opened a Web consulting business
Denzel Brooks opened a Web consulting business called Venture Consultants and completed the following transactions in March.
March 1 Brooks invested $170,000 cash along with $22,000 in office equipment in the company.
| Date | Transaction No. | Account Title | Debit | Credit |
|---|---|---|---|---|
| March 1 | 1 | Cash (101) | 170,000 | |
| Office Equipment (163) | 22,000 | |||
| D. Brooks, Capital (301) | 192,000 |
March 2 The company prepaid $7,500 cash for six months’ rent for an office. Hint: Debit Prepaid Rent for $7,500.
| Date | Transaction No. | Account Title | Debit | Credit |
|---|---|---|---|---|
| March 2 | 2 | Prepaid Rent (131) | 7,500 | |
| Cash (101) | 7,500 |
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March 3 The company made credit purchases of office equipment for $2,600 and office supplies for $2,300. Payment is due within 10 days.
March 6 The company completed services for a client and immediately received $5,500 cash.
March 9 The company completed a $8,600 project on credit for a client, who must pay within 30 days.
March 12 The company paid $4,900 cash to settle the account payable created on March 3.
March 19 The company paid $5,100 cash for the premium on a 12-month insurance policy. Hint: Debit Prepaid Insurance for $5,100. March 22 The company received $4,100 cash as partial payment for the work completed on March 9.
March 25 The company completed work for another client for $5,050 on credit.
March 29 Brooks withdrew $5,800 cash from the company for personal use.
March 30 The company purchased $1,700 of additional office supplies on credit.
March 31 The company paid $700 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.
Related: (Solution) Aracel Engineering completed the following transactions
Solution – Denzel Brooks opened a Web consulting business
1. Journal Entries
| Date | Transaction No. | Account Title | Debit | Credit |
|---|---|---|---|---|
| March 1 | 1 | Cash (101) | 170,000 | |
| Office Equipment (163) | 22,000 | |||
| D. Brooks, Capital (301) | 192,000 | |||
| March 2 | 2 | Prepaid Rent (131) | 7,500 | |
| Cash (101) | 7,500 | |||
| March 3 | 3 | Office Equipment (163) | 2,600 | |
| Office Supplies (124) | 2,300 | |||
| Accounts Payable (201) | 4,900 |
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