60.1K

Verified Solution

Link Copied!

Karla Tanner opens a Web consulting business called Linkworks and completes the following transactions in its first month of operations April 1 Tanner invested $140,000 cash along with office equipment valued at $33,600 n the company in exchange for common stock. 2 The company prepaid 57,200 cash for 12 months' rent for office space. (Hint: Debit Prepaid Rent for $7,200.) 3 The company made credit purchases for $16,800 in office equipment and $3,360 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 $11,200 project for a client, who must pay within 30 days. 13 The company paid $20, 160 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 $8,960 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 $1,120 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. Post the journal entries from part 1 to the ledger accounts 3. Prepare a trial balance as of April 30

Answer & Explanation Solved by verified expert

See Answer