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Karla Tanner opens a Web consulting business called Linkworks and completes the following transactions in its...

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Accounting

Karla Tanner opens a Web consulting business called Linkworksand completes the following transactions in its first month ofoperations.
  

April 1 Tanner invested $130,000 cash along with officeequipment valued at $31,200 in the company.

  2 The company prepaid $7,200 cash for twelve months’rent for office space. (Hint: Debit Prepaid Rent for $7,200.)

  3 The company made credit purchases for $15,600 inoffice equipment and $3,120 in office supplies. Payment is duewithin 10 days.

  6 The company completed services for a client andimmediately received $2,000 cash.

  9 The company completed a $10,400 project for aclient, who must pay within 30 days.

  13 The company paid $18,720 cash to settle theaccount payable created on April 3.

  19 The company paid $6,000 cash for the premium on a12-month insurance policy.

  22 The company received $8,320 cash as partialpayment for the work completed on April 9.

  25 The company completed work for another client for$2,640 on credit.

   28 Tanner withdrew $6,200 cash from thecompany for personal use.

   29 The company purchased $1,040 of additionaloffice supplies on credit.

   30 The company paid $700 cash for this month’sutility bill.

Answer & Explanation Solved by verified expert
3.5 Ratings (482 Votes)

Date General Journal Debit Credit
1-Apr Cash 130,000
Office equipment 31,200
Karla Tanner, Capital 161,200
2-Apr Prepaid rent 7,200
Cash 7,200
3-Apr Office equipment 15,600
Office supplies 3,120
Accounts payable 18,720
6-Apr Cash 2,000
Services revenue 2,000
9-Apr Accounts receivable 10,400
Services revenue 10,400
13-Apr Accounts payable 18,720
Cash 18,720
19-Apr Prepaid insurance 6,000
Cash 6,000
22-Apr Cash 8,320
Accounts receivable 8,320
25-Apr Accounts receivable 2,640
Services revenue 2,640
28-Apr Karla Tanner, Withdrawals 6,200
Cash 6,200
29-Apr Office supplies 1040
Accounts payable 1,040
30-Apr Utilities expense 700
Cash 700

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