Question

Denzel Brooks opened a Web consulting business called Venture Consultants and completed the following transactions in March.

March 1 Brooks invested $195,000 cash along with $29,000 in office equipment in the company in exchange for common stock.
2 The company prepaid $8,000 cash for six months' rent for an office. Hint: Debit Prepaid Rent for $8,000.
3 The company made credit purchases of office equipment for $4,200 and office supplies for $2,400. Payment is due within 10 days.
6 The company completed services for a client and immediately received $3,500 cash.
9 The company completed a $9,200 project for a client, who must pay within 30 days.
12 The company paid $6,600 cash to settle the account payable created on March 3.
19 The company paid $4,700 cash for the premium on a 12-month insurance policy. Hint: Debit Prepaid Insurance for $4,700.
22 The company received $3,900 cash as partial payment for the work completed on March 9.
25 The company completed work for another client for $3,760 on credit.
29 The company paid a $6,200 cash dividend.
30 The company purchased $1,600 of additional office supplies on credit.
31 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).

Answer 1

March 1

Cash $195,000 (debit)

Office equipment $29,000 (debit)

Common Stock $224,000 (credit)

March 2

Prepaid Rent $8,000 (debit)

Cash $8,000 (credit)

March 3

office equipment $4,200 (debit)

office supplies $2,400 (debit)

Accounts Payable $6,600 (credit)

March 6

Cash $3,500 (debit)

Revenue $3,500 (credit)

March 9

Trade Receivable $9,200 (debit)

Revenue $9,200 (credit)

March 12

Accounts Payable $6,600 (debit)

Cash $6,600 (credit)

March 19

Prepaid Insurance $4,700 (debit)

Cash $4,700 (credit)

March 22

Cash $3,900 (debit)

Trade Receivable $3,900 (credit)

March 25

Trade Receivable $3,760 (debit)

Revenue $3,760 (credit)

March 29

Dividend $6,200 (debit)

Cash $6,200 (credit)

March 30

Office supplies $1,600 (debit)

Cash $1,600 (credit)

March 31

Utility Bill $700 (debit)

Cash $700 (credit)

Step-by-step explanation:

Identify the two Accounts Affected and place them in the respective given titles then record the journal.