Denzel Brooks opens a web consulting business called Venture Consultants and com
ID: 2491832 • Letter: D
Question
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 of office equipment in the company. March 2: Venture Consultants pre-paid $6,000 cash or six months’ rent for their office. March 3: Venture Consultants made credit purchases for office equipment for $3,000 and office supplies for $1,200. Payment is due within 10 days. March 6: Venture Consultants completed services for a client and immediately received $4,000 cash. March 9: Venture Consultants completed a $7,500 project for a client who must pay within 30 days. March 12: Venture Consultants paid $4,200 cash to settle the account payable created on March 3. March 19: Venture Consultants paid a $5,000 cash premium on a 12-month insurance policy. March 22: Venture Consultants received $3,500 cash as a partial payment for the work completed on March 9. March 25: Venture Consultants completed work for another client for $3,820 on credit. March 29: Brooks withdrew $5,100 cash from the company for personal use. March 30: Venture Consultants purchased $600 of additional office supplies on credit. March 31: Venture Consultants paid $500 cash for this month’s utility bill. Instructions: Prepare journals for the above economic transactions. Use the file called "Assignment Template" in the assignment section for Part #1, Venture Capital Consultants. Enter your journals to the general ledger using the same file name.
Explanation / Answer
1-Mar Cash Dr 150000 Office equipment Dr 22000 Common stock Cr 172000 2-Mar Prepaid Rent Dr 6000 Cash Cr 6000 3-Mar Office equipment Dr 3000 office supplies Dr 1200 Accounts payable Cr 4200 6-Mar Cash Dr 4000 Service Income Cr 4000 9-Mar Accounts receivable Dr 7500 Service Revenue Cr 7500 12-Mar Accounts payable Dr 4200 Cash Cr 4200 19-Mar Prepaid Insurance Dr 5000 Cash Cr 5000 22-Mar Cash Dr 3500 Accounts receivable Cr 3500 25-Mar Accounts receivable Dr 3820 Service Revenue Cr 3820 29-Mar Drawings Dr 5100 Cash Cr 5100 30-Mar Office supplies Dr 600 Accounts payable Cr 600 31-Mar utilities Dr 500 Cash Cr 500 31-Mar Insurance expense Dr 416.67 Prepaid Insurance Cr 416.67 31-Mar Rent expense Dr 1000 Prepaid rent Cr 1000 Common stock 1-Mar By Cash 150000 By office equipment 22000 Cash 1-Mar To Common stock 150000 2-Mar By prepaid rent 6000 6-Mar To service revenue 4000 12-Mar By accounts payable 4200 22-Mar To Accounts receivable 3500 19-Mar By prepaud insurance 5000 29-Mar By Drawings 5100 31-Mar By utilities expense 500 Prepaid Rent 2-Mar To cash 6000 31-Mar By Rent expense 1000 Rent expense 31-Mar To prepaid rent 1000 Office equipment 1-Mar To common stock 22000 3-Mar To accounts payable 3000 Office supplies 3-Mar To accounts payable 1200 30-Mar To accounts payable 600 Accounts payable 12-Mar To Cash 4200 3-Mar By office equipment 3000 By office supplies 1200 29-Mar By office supplies 600 Service revenue 6-Mar By CASH 4000 9-Mar By accounts receivable 7500 25-Mar By accounts receivable 3820 Accounts receivable 9-Mar To service revenue 7500 22-Mar By Cash 3500 25-Mar To service revenue 3820 Prepaid Insurance 19-Mar To cash 5000 31-Mar By insurance expense 416.6667 Insurance expense 31-Mar To prepaid insurance 416.6667 Drawings 29-Mar To Cash 5100 Utilities expense 31-Mar To Cash 500
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