Karla Tanner opened a Web consulting business called Linkworks and completed the following transactions in its first month of operations. April 1 Tanner invested $110,000 cash along with office equipment valued at $26,400 in the company in exchange for common stock. April 2 April 3 The company prepaid $7,200 cash for 12 months' rent for office space. Hint: Debit Prepaid Rent for $7,200. The company made credit purchases for $13,200 in office equipment and $2,640 in office supplies. Payment is due within 10 days. The company completed services for a client and immediately received $2,000 cash. The company completed a $8,800 project for a client, who must pay within 30 days. The company paid $15,840 cash to settle the account payable created on April 3. The company paid $6,000 cash for the premium on a 12-month prepaid insurance policy. Hint: Debit Prepaid Insurance for $6,000. The company received $7,040 cash as partial payment for the work completed on April 9. The company completed work for another client for $2,640 on credit. The company paid a $6,200 cash dividend. The company purchased $880 of additional office supplies on credit. The company paid $700 cash for this month's utility bill. April 6 April 9 April 13 April 19 April 22 April 25 April 28 April 29 April 30 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); Common Stock (307); Dividends (319): Services Revenue (403); and Utilities Expense (690).
Karla Tanner opened a Web consulting business called Linkworks and completed the following transactions in its first month of operations. April 1 Tanner invested $110,000 cash along with office equipment valued at $26,400 in the company in exchange for common stock. April 2 April 3 The company prepaid $7,200 cash for 12 months' rent for office space. Hint: Debit Prepaid Rent for $7,200. The company made credit purchases for $13,200 in office equipment and $2,640 in office supplies. Payment is due within 10 days. The company completed services for a client and immediately received $2,000 cash. The company completed a $8,800 project for a client, who must pay within 30 days. The company paid $15,840 cash to settle the account payable created on April 3. The company paid $6,000 cash for the premium on a 12-month prepaid insurance policy. Hint: Debit Prepaid Insurance for $6,000. The company received $7,040 cash as partial payment for the work completed on April 9. The company completed work for another client for $2,640 on credit. The company paid a $6,200 cash dividend. The company purchased $880 of additional office supplies on credit. The company paid $700 cash for this month's utility bill. April 6 April 9 April 13 April 19 April 22 April 25 April 28 April 29 April 30 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); Common Stock (307); Dividends (319): Services Revenue (403); and Utilities Expense (690).
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 19EB: A business has the following transactions: A. The business is started by receiving cash from an...
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