Please read the required section Prepare: 1- general entries. 2- Set up a T Acco

Question

Please read the required section

Prepare:

1- general entries.

2- Set up a T Accounts

3- Prepare a Trial Balance as of April 30

Chapter 2 Problem Karla Tanner opens a Web consulting business called Linkworks and completes the following transactions i first month of operations April 1 Tanner invested $150,000 cash along with office equipment valued at $36,000 n the company in exchange for common stock. 2 The company prepaid $7,200 cash for 12 months' rent for office space. (Hint: Debit Prepaid Rent for $7,200.) 3 The company made credit purchases for $18,000 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 $2,000 cash. 9 The company completed a $12,000 project for a client, who must pay within 30 days 13 The company paid $21,600 cash to settle the account payable created on April 3. 19 The company paid $6,000 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $6,000.) 22 The company received $9,600 cash as partial payment for the work completed on April 9, 25 The company completed work for another client for $2,640 on credit. 28 The company paid $6,200 cash in dividends 29 The company purchased $1,200 of additional office supplies on credit. 30 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); Common Stock (307); Dividends (319); Services Revenue (403); and Utilities Expense (690) 2. At the bottom of page 4, set up T-Accounts for the above listed accounts, and post the journal entries from part 1 to the ledger accounts. 3. On a separate piece of paper, prepare a trial balance as of April 30, 2017. Date Account Title Debit Credit

Explanation / Answer

1. Journal Entries:

2. T-Accounts :

3) Trial Balance :

Date Accounts Titles Debit $ Credit $ Ap 1 Cash 150000 Office Equipment 36000 Common Stock 186000 2 Prepaid Rent 7200 Cash 7200 3 Office Equipment 18000 Office Supplies 3600 AP 21600 6 Cash 2000 Service Revenue 2000 9 AR 12000 Service Revenue 12000 13 AP 21600 Cash 21600 19 Prepaid Insurance 6000 CAsh 6000 22 Cash 9600 AR 9600 25 AR 2640 Service Revenue 2640 28 Dividend 6200 Cash 6200 29 Office supplies 1200 AP 1200 30 Utility expenses 700 Cash 700

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