wenming
Feb 14, 2010, 06:09 PM
Jayden Lanelle opens a computer consulting business called Viva Consultants and completes the following
transactions in its first month of operations.
April 1 Lanelle invests $95,000 cash along with office equipment valued at $22,800 in the company
in exchange for its common stock.
to 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 $11,400 in office equipment and $2,280 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 $7,600 project for a client, who must pay within 30 days.
13 The company paid $13,680 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 $6,080 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 for dividends.
29 The company purchased $760 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 (use account titles listed in part 2).
2. Open the following ledger accounts—their account numbers are in parentheses (use the balance column
format): 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). Post journal entries from part
1 to the ledger accounts and enter the balance after each posting.
3. Prepare a trial balance as of April 30.
Business transactions completed by Alanna Emitt during the month of September are as follows.
a. Emitt invested $82,000 cash along with office equipment valued at $22,000 in exchange for common
stock of a new company named AE Consulting.
b. The company purchased land valued at $40,000 and a building valued at $165,000. The purchase is
paid with $25,000 cash and a long-term note payable for $180,000.
c. The company purchased $1,700 of office supplies on credit.
d. Emitt invested her personal automobile in the company in exchange for more common stock. The
automobile has a value of $16,800 and is to be used exclusively in the business.
e. The company purchased $5,900 of additional office equipment on credit.
f. The company paid $1,500 cash salary to an assistant.
g. The company provided services to a client and collected $7,600 cash.
h. The company paid $630 cash for this month’s utilities.
I. The company paid $1,700 cash to settle the account payable created in transaction c.
j. The company purchased $20,200 of new office equipment by paying $20,200 cash.
k. The company completed $6,750 of services for a client, who must pay within 30 days.
l. The company paid $2,000 cash salary to an assistant.
m. The company received $4,000 cash in partial payment on the receivable created in transaction k.
n. The company paid $2,900 cash for dividends.
Required
1. Prepare general journal entries to record these transactions (use account titles listed in part 2).
2. Open the following ledger accounts—their account numbers are in parentheses (use the balance column
format): Cash (101); Accounts Receivable (106); Office Supplies (108); Office Equipment (163);
Automobiles (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250);
Common Stock (307); Dividends (319); Fees Earned (402); Salaries Expense (601); and Utilities
Expense (602). Post the journal entries from part 1 to the ledger accounts and enter the balance after
each posting—in the date column enter instead the reference to which transaction from (a) through (n).
3. Prepare a trial balance as of the end of September.
transactions in its first month of operations.
April 1 Lanelle invests $95,000 cash along with office equipment valued at $22,800 in the company
in exchange for its common stock.
to 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 $11,400 in office equipment and $2,280 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 $7,600 project for a client, who must pay within 30 days.
13 The company paid $13,680 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 $6,080 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 for dividends.
29 The company purchased $760 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 (use account titles listed in part 2).
2. Open the following ledger accounts—their account numbers are in parentheses (use the balance column
format): 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). Post journal entries from part
1 to the ledger accounts and enter the balance after each posting.
3. Prepare a trial balance as of April 30.
Business transactions completed by Alanna Emitt during the month of September are as follows.
a. Emitt invested $82,000 cash along with office equipment valued at $22,000 in exchange for common
stock of a new company named AE Consulting.
b. The company purchased land valued at $40,000 and a building valued at $165,000. The purchase is
paid with $25,000 cash and a long-term note payable for $180,000.
c. The company purchased $1,700 of office supplies on credit.
d. Emitt invested her personal automobile in the company in exchange for more common stock. The
automobile has a value of $16,800 and is to be used exclusively in the business.
e. The company purchased $5,900 of additional office equipment on credit.
f. The company paid $1,500 cash salary to an assistant.
g. The company provided services to a client and collected $7,600 cash.
h. The company paid $630 cash for this month’s utilities.
I. The company paid $1,700 cash to settle the account payable created in transaction c.
j. The company purchased $20,200 of new office equipment by paying $20,200 cash.
k. The company completed $6,750 of services for a client, who must pay within 30 days.
l. The company paid $2,000 cash salary to an assistant.
m. The company received $4,000 cash in partial payment on the receivable created in transaction k.
n. The company paid $2,900 cash for dividends.
Required
1. Prepare general journal entries to record these transactions (use account titles listed in part 2).
2. Open the following ledger accounts—their account numbers are in parentheses (use the balance column
format): Cash (101); Accounts Receivable (106); Office Supplies (108); Office Equipment (163);
Automobiles (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250);
Common Stock (307); Dividends (319); Fees Earned (402); Salaries Expense (601); and Utilities
Expense (602). Post the journal entries from part 1 to the ledger accounts and enter the balance after
each posting—in the date column enter instead the reference to which transaction from (a) through (n).
3. Prepare a trial balance as of the end of September.