Question

Zucker Management Services opened for business and completed these transactions in November.

Nov. 1 Matt Zucker, the owner, invested \(30,000 cash along with \)15,000 of office equipment in the company in exchange for common stock.

2 The company prepaid \(4,500 cash for six months’ rent for an office. (Hint:Debit Prepaid Rent for \)4,500.)

4 The company made credit purchases of office equipment for \(2,500 and of office supplies for \)600. Payment is due within 10 days.

8 The company completed work for a client and immediately received \(3,400 cash.

12 The company completed a \)10,200 project for a client, who must pay within 30 days.

13 The company paid \(3,100 cash to settle the payable created on November 4.

19 The company paid \)1,800 cash for the premium on a 24-month insurance policy.

22 The company received \(5,200 cash as partial payment for the work completed on November 12.

24 The company completed work for another client for \)1,750 on credit.

28 The company paid \(5,300 cash in dividends.

29 The company purchased \)249 of additional office supplies on credit.

30 The company paid $831 cash for this month’s utility bill.

Required

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

Short answer

The total of general journal matches at $84,430.

Step-by-step solution

Journal Entry (part 1)

General Journal
Page 1
Date	Description	PR	Debit	Credit
Nov 1	Cash	101	$ 30,000
	Office Equipment	163	15,000
	Common Stock	307		$ 45,000
	Being investment made into the business in the form of cash and equipment
2	Prepaid Rent	131	4,500
	Cash	101		4,500
	Being rent paid in advance
4	Office Equipment	163	2,500
	Office Supplies	124	600
	Accounts Payable	201		3,100
	Being office equipment and supplies purchased on credit
8	Cash	101	3,400
	Service Revenue	403		3,400
	Being cash received for providing services
12	Accounts Receivables	106	10,200
	Service Revenues	403		10,200
	Being services provided and payment due to receive
13	Accounts Payable	201	3,100
	Cash	101		3,100
	Being cash paid to creditors
	Carried Forward		$ 69,300	$ 69,300

Journal Entry (part 1)

General Journal
Page 2
Date	Description	PR	Debit	Credit
	Brought Forward		$ 69,300	$ 69,300
Nov 19	Prepaid Insurance	128	1,800
	Cash	101		1,800
	Being insurance premium paid for 24 months
22	Cash	101	5,200
	Accounts Receivables	106		5,200
	Being amount received from receivables
25	Accounts Receivables	106	1,750
	Service Revenues	403		1,750
	Being services provided on credit
28	Dividends	319	5,300
	Cash	101		5,300
	Being dividend paid
29	Office supplies	124	249
	Accounts payable	201		249
	Being supplies purchased on credit
30	Utilities Expense	690	831
	Cash	101		831
	Being utility expenses paid
	Total		$ 84,430	$ 84.430