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

2. Open the following ledger accounts—their account numbers are in parentheses (use the balance column format): Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); Common Stock (307); Dividends (319); Services Revenue (403); and Utilities Expense (690). Post the journal entries from part 1 to the ledger accounts and enter the balance after each posting.

Short answer

The total cash ledger balance amounts to $23,069.

Step-by-step solution

General Ledger (part 1)

Cash Account No. 101
Date	PR	Debit	Credit	Balance
Nov 1	G1	$ 30,000		$ 30,000
2	G1		$ 4,500	25,500
8	G1	3,400		28,900
13	G1		3,100	25,800
19	G2		1,800	24,000
22	G2	5,200		29,200
28	G2		5,300	23,900
30	G2		831	23,069

Accounts Receivables Account No. 106
Date	PR	Debit	Credit	Balance
Nov 12	G1	$ 10,200		$ 10,200
22	G2		$ 5,200	5,000
25	G2	1,750		6,750

Office Supplies Account No. 124
Date	PR	Debit	Credit	Balance
Nov 4	G1	$ 600		$ 600
29	G1	249		849

Prepaid Insurance Account No. 128
Date	PR	Debit	Credit	Balance
Nov 19	G2	$ 1,800		$ 1,800

Prepaid Rent Account No. 131
Date	PR	Debit	Credit	Balance
Nov 2	G1	$ 4,500		$ 4,500

General Ledger (part 2)

Office Equipment Account No. 163
Date	PR	Debit	Credit	Balance
Nov 1	G1	$ 15,000		$ 15,000
4	G1	2,500		$ 17,500

Accounts Payable Account No. 201
Date	PR	Debit	Credit	Balance
Nov 4	G1		$ 3,100	$ 3,100
13	G1	$ 3,100
29	G2		249	249

Common Stock Account No. 307
Date	PR	Debit	Credit	Balance
Nov 1	G1		$ 45,000	$ 45,000

Dividends Account No. 319
Date	PR	Debit	Credit	Balance
Apr 28	G2	$ 5,300		$ 5,300

Service Revenue Account No. 403
Date	PR	Debit	Credit	Balance
Mar 8	G1		$ 3,400	$ 3,400
12	G1		10,200	13,600
25	G2		1,750	15,350

Utility Expenses Account No. 690
Date	PR	Debit	Credit	Balance
Mar 30	G2	$ 831		$ 831