Problem 2-4A Preparing and posting journal entries; preparing a trial balance L.O. C3, C4, A1, P1, P2
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Santo Birch opens a Web consulting business called Show-Me-the-Money and completes the following transactions in its first month of operations. |
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March 1 |
Birch invests $95,000 cash along with office equipment valued at $22,800 in the company in exchange for common stock. |
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2 |
The company prepaid $7,200 cash for twelve months' rent for office space. (Hint: Debit Prepaid Rent for $7,200.) |
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3 |
The company made credit purchases for $11,400 in office equipment and $2,280 in office supplies. Payment is due within 10 days. |
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6 |
The company completed services for a client and immediately received $2,000 cash. |
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9 |
The company completed a $7,600 project for a client, who must pay within 30 days. |
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13 |
The company paid $13,680 cash to settle the account payable created on March 3. |
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19 |
The company paid $6,000 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $6,000.) |
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22 |
The company received $6,080 cash as partial payment for the work completed on March 9. |
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25 |
The company completed work for another client for $2,640 on credit. |
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29 |
The company paid $6,200 cash for dividends. |
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30 |
The company purchased $760 of additional office supplies on credit. |
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31 |
The company paid $700 cash for this month's utility bill. |
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Required: |
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1. |
Record these transactions using the following titles: Cash, Accounts Receivable, Office Supplies, Prepaid Insurance, Prepaid Rent, Office Equipment, Accounts Payable, Common stock, Dividends, Services Revenue, and Utilities Expense. (Omit the "$" sign in your response.) |
