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Karla tanner opens a web consulting business

04/05/2021 Client: muhammad11 Deadline: 2 Day

Denzel Brooks opens a Web consulting business called Venture Consultants and completes the following transactions in March.

March 1 Brooks invested $180,000 cash along with $30,000 of office equipment in the company in exchange for its common stock
.

2 The company prepaid $8,000 cash for six months’ rent for an office. (Hint: Debit Prepaid Rent for $8,000.)

3 The company made credit purchases of office equipment for $3,300 and office supplies for $1,400. Payment is due within 10 days.

6 The company completed services for a client and immediately received $6,000 cash.

9 The company completed a $9,200 project for a client, who must pay within 30 days.

12 The company paid $4,700 cash to settle the account payable created on March 3.

19The company paid $7,500 cash for the premium on a 12-month insurance policy.

22 The company received $4,300 cash as partial payment for the work completed on March 9.

25 The company completed work for another client for $3,590 on credit.

29 The company paid $4,900 cash for dividends.

30 The company purchased $1,700 of additional office supplies on credit.

31 The company paid $500 cash for this month’s utility bill.

Required

1. Prepare general journal entries to record these transactions (use the account titles listed in part 2).

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); Common Stock (307); Dividends (319); Services Revenue (403); and Utilities Expense (690). Post the journal entries from part 1 to the ledger accounts and enter the balance after each posting.

3. Prepare a trial balance as of the end of March.

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