Please help me understand how to do this problem as well as helping input the co
ID: 2336429 • Letter: P
Question
Please help me understand how to do this problem as well as helping input the correct answers to each section. Thank you! :)
Check my work Karla Tanner opens a Web consulting buslness called Linkworks and completes the following transactions In its first month of operations April 1 Tanner invested $125,000 cash along with ottice equipment valued at $38,909 in the company 2 The company prepaid $7,200 cash for twelve months, rent for office pare. (Hint: Debit Prepaid Rent for $7,2aa.) points 3 The company made credit purchases for $15,009 in office quipment and 3,99 in oftice supplies. Payment is due within 19 eBock Ask Print References days 6 The company completed srvices for a cliant and innediately received $2,93 cash 9 The ronpany cospleted $10, projert for client, who must pay within 3 days 13 The company paid $18,00 cash to settle the account payable created on April 3 19 The ronpany paidh,BBB rash for the premium on 12-month insurance poli ry. (Hint: Debit Prepaid rnsuranra for $6,BBB.) 22 The company received $8, cash as partial payment tor the work conpletd on April 9 75 The ronpany copleted work for another r11 ent fnr2,64on credit 28 Tanner withdrew $6,28 cash trom the company for personal uso 29 The company purchased $1, nf additional office supplies on credit 30 The company paid $708 cash tor this month's utility bill Required: 1. Prepare general Journal entries to record these transactions using the following titles: Cash (101); Accounts Recelvable (106): Office Supplies (12; Prepaid Insurance (128 Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); K. Tanner, Capital (301); K. Tanner, Withdrawals (302): Services Reveue (403): and tlities Expese 90) 2. Post the journal entries from part 1to the ledger accounts. 3. Prepare a trlal balance as of April 30.Explanation / Answer
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Date General Journal Debit Credit Apr. 1 Cash 125000 Office equipment 30000 K. Tanner, capital 155000 (To record capital invested) 2 Prepaid rent 7200 Cash 7200 (To record prepaid rent) 3 Office equipment 15000 Office supplies 3000 Accounts payable 18000 (To record credit purchases) 6 Cash 2000 Services revenue 2000 (To record cash received for completed services) 9 Accounts receivable 10000 Services revenue 10000 (To record revenue earned) 13 Accounts payable 18000 Cash 18000 (To record payment on account) 19 Prepaid insurance 6000 Cash 6000 (To record prepaid insurance) 22 Cash 8000 Accounts receivable 8000 (To record collection on account) 25 Accounts receivable 2540 Services revenue 2540 (To record revenue earned) 28 K. Tanner, withdrawals 6200 Cash 6200 (To record cash withdrawn for personal use) 29 Office supplies 1000 Accounts payable 1000 (To record credit purchases) 30 Utilities expense 700 Cash 700 (To record payment of utility bill)