Friday 9 November 2012

Gary Bauer opens a computer consulting business called Technology Consultants and completes the following transactions in April.



[The following information applies to the questions displayed below.]
Gary Bauer opens a computer consulting business called Technology Consultants and completes the following transactions in April.

 April 1  
Bauer invested $190,000 cash along with $26,000 in office equipment in the  company in exchange for common stock.
2  
The company prepaid $7,000 cash for twelve months' rent for an office. (Hint: Debit Prepaid Rent for $7,000.)
3  
The company made credit purchases of office equipment for $5,000 and office supplies for $2,100. 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 $9,600 project for a client, who must pay within 30 days.
13  
The company paid $7,100 cash to settle the account payable created on April 3.
19  
The company paid $4,300 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $4,300.)
22  
The company received $3,800 cash as partial payment for the work completed on April 9.
25  
The company completed work for another client for $4,910 on credit.
28  
The company paid $5,400 cash for dividends.
29  
The company purchased $1,300 of additional office supplies on credit.
30  
The company paid $1,400 cash for this month's utility bill.


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.)
     
Date
General Journal
Debit
Credit
Apr. 1    
  Cash


   Office equipment


        Common stock


  



2    
  Prepaid rent


        Cash


  



3    
  Office equipment


  Office supplies


        Accounts payable


   



6    
  Cash


        Services revenue


  



9    
  Accounts receivable


        Services revenue


  



13    
  Accounts payable


        Cash


  



19    
  Prepaid insurance


        Cash


  



22    
  Cash


        Accounts receivable


  



25    
  Accounts receivable


        Services revenue


  



28    
  Dividends


        Cash


  



29    
  Office supplies


        Accounts payable


  



30    
  Utilities expense


        Cash




 
2.
Open the ledger accounts for the account titles referred in part 1 and post the journal entries from part 1 to the ledger accounts and enter the balance after each posting.(Record the transactions in given order. Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Omit the "$" sign in your response.)
     
Cash
Date


Debit


Credit

Balance         
April
1

   


   

      

2

   


   

      

6

   


   

      

13

   


   

      

19

   


   

      

22

   


   

      

28

   


   

      

30

   


   

        
      
Accounts Receivable
Date

Debit


Credit

Balance         
April
9

   


   

      

22

   


   

      

25

   


   

      
     
Office Supplies
Date

Debit


Credit

Balance         
April
3

   


   

      

29

   


   

      
     
Prepaid Insurance
Date

Debit


Credit

Balance         
April
19

   


   

      









     
Prepaid Rent
Date

Debit


Credit

Balance         
April
2

   


   

      









     
Office Equipment
Date

Debit


Credit

Balance         
April
1

   


   

      

3

   


   

      
      
Accounts Payable
Date

Debit


Credit

Balance         
April
3

   


   

      

13

   


   

      

29

   


   

      
      
Common Stock
Date

Debit


Credit

Balance         
April
1

   


   

      









     
Dividends
Date

Debit


Credit

Balance         
April
28



   

      









      
Services Revenue
Date

Debit


Credit

Balance         
April
6

   


   

      

9

   


   

      

25

   


   

      
     
Utilities Expense
Date

Debit


Credit

Balance         
April
30

   


   

      











 
 6.
award:
0 out of
2.00 points


3.
Prepare a trial balance as of the end of April. (The items in the Trial Balance should be grouped as follows: Assets, Liabilities, Equity, Revenues, and Expenses. Omit the "$" sign in your response.)
     
TECHNOLOGY CONSULTANTS
Trial Balance
April 30

      Debit
      Credit
  Cash
$  

  Accounts receivable


  Office supplies


   Prepaid insurance


  Prepaid rent


  Office equipment


  Accounts payable

$  
  Common stock


  Dividends


  Service revenue


  Utilities expense


    

  Totals
$  
$  
    




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