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

3. Prepare a trial balance as of the end of March.

Short answer

The total trial balance matches at $187,920.

Step-by-step solution

No. of accounts

In the given case, there are 11 accounts in the general ledger, out of those 8 accounts have debit balances and the rest 3 of them have a credit balance. These accounts have been listed in the trial balance in step 2.

Trial Balance

Karla Tanner
Trial Balance
April 30
	Debit	Credit
Cash	$ 136,700
Accounts Receivables	7,820
Office Supplies	1,800
Prepaid Insurance	5,000
Prepaid Rent	6,000
Office Equipment	25,000
Accounts Payable		$ 600
Common Stock		172,000
Dividends	5,100
Service Revenues		3,820
Utility Expenses	500
Total	$ 187,920	$ 187,920