Question

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

March 1 Brooks invested \(150,000 cash along with \)22,000 in office equipment in the company in exchange for common stock.

2 The company prepaid \(6,000 cash for six months’ rent for an office. (Hint:Debit Prepaid Rent for \)6,000.)

3 The company made credit purchases of office equipment for \(3,000 and office supplies for \)1,200. Payment is due within 10 days.

6 The company completed services for a client and immediately received \(4,000 cash.

9 The company completed a \)7,500 project for a client, who must pay within 30 days.

12 The company paid \(4,200 cash to settle the account payable created on March 3.

19 The company paid \)5,000 cash for the premium on a 12-month insurance policy. (Hint:Debit Prepaid Insurance for \(5,000.)

22 The company received \)3,500 cash as partial payment for the work completed on March 9.

25 The company completed work for another client for \(3,820 on credit.

29 The company paid \)5,100 cash in dividends.

30 The company purchased \(600 of additional office supplies on credit.

31 The company paid \)500 cash for this month’s utility bill.

Required

1. Prepare general journal entries to record these transactions (use the account titles listed in part 2).

Short answer

The total of general journal matches at$216,420.

Step-by-step solution

Journal Entry (part 1)

General Journal
Page 1
Date	Description	PR	Debit	Credit
Mar 1	Cash	101	$ 150,000
	Office Equipment	163	22,000
	Common Stock	307		$ 172,000
	Being investment made into the business in the form of cash and equipment
2	Prepaid Rent	131	6,000
	Cash	101		6,000
	Being rent paid in advance
3	Office Equipment	163	3,000
	Office Supplies	124	1,200
	Accounts Payable	201		4,200
	Being office equipment and supplies purchased on credit
6	Cash	101	4,000
	Service Revenue	403		4,000
	Being cash received for providing services
9	Accounts Receivables	106	7,500
	Service Revenues	403		7,500
	Being services provided and payment due to receive
12	Accounts Payable	201	4,200
	Cash	101		4,200
	Being cash paid to creditors
	Carried Forward		$ 197,900	$ 197,900

Journal Entry (part 1)

General Journal
Page 2
Date	Description	PR	Debit	Credit
	Brought Forward		$ 197,900	$ 197,900
Mar 19	Prepaid Insurance	128	5,000
	Cash	101		5,000
	Being insurance premium paid for 12 months
22	Cash	101	3,500
	Accounts Receivables	106		3,500
	Being amount received from receivables
25	Accounts Receivables	106	3,820
	Service Revenues	403		3,820
	Being services provided on credit
29	Dividends	319	5,100
	Cash	101		5,100
	Being dividend paid
30	Office supplies	124	600
	Accounts payable	201		600
	Being supplies purchased on credit
31	Utility Expense	690	500
	Cash	101		500
	Being utility expenses paid
	Total		$ 216,420	$ 216,420