Chapter 2: Q4DQ (page 79)
What kinds of transactions can be recorded in a general journal?
Any type of transaction can be recorded in a general journal.
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Nuncio Consulting completed the following transactions during June.
a. Armand Nuncio, the owner, invested \(35,000 cash along with office equipment valued at \)11,000 in the new company in exchange for common stock.
b. The company purchased land valued at \(7,500 and a building valued at \)40,000. The purchase is paid with \(15,000 cash and a long-term note payable for \)32,500.
c. The company purchased \(500 of office supplies on credit.
d. Nuncio invested his personal automobile in the company in exchange for more common stock. The automobile has a value of \)8,000 and is to be used exclusively in the business.
e. The company purchased \(1,200 of additional office equipment on credit.
f. The company paid \)1,000 cash salary to an assistant.
g. The company provided services to a client and collected \(3,200 cash.
h. The company paid \)540 cash for this month’s utilities.
i. The company paid \(500 cash to settle the payable created in transaction c.
j. The company purchased \)3,400 of new office equipment by paying \(3,400 cash.
k. The company completed \)4,200 of services for a client, who must pay within 30 days.
l. The company paid \(1,000 cash salary to an assistant.
m. The company received \)2,200 cash in partial payment on the receivable created in transaction k.
n. The company paid $1,100 cash in dividends.
Required
3. Prepare a trial balance as of the end of June.
Question:Karla Tanner opened a web consulting business called Linkworks and completed the following transactions in its first month of operations.
Apr. 1 Tanner invested \(80,000 cash along with office equipment valued at \)26,000 in the company in exchange for common stock.
2 The company prepaid \(9,000 cash for 12 months’ rent for office space. (Hint:Debit Prepaid Rent for \)9,000.)
3 The company made credit purchases for \(8,000 in office equipment and \)3,600 in office supplies. Payment is due within 10 days.
6 The company completed services for a client and immediately received \(4,000 cash.
9 The company completed a \)6,000 project for a client, who must pay within 30 days.
13 The company paid \(11,600 cash to settle the account payable created on April 3.
19 The company paid \)2,400 cash for the premium on a 12-month insurance policy. (Hint:Debit Prepaid Insurance for \(2,400.)
22 The company received \)4,400 cash as partial payment for the work completed on April 9.
25 The company completed work for another client for \(2,890 on credit.
28 The company paid \)5,500 cash in dividends.
29 The company purchased \(600 of additional office supplies on credit.
30 The company paid \)435 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 journal entries from part 1 to the ledger accounts and enter the balance after each posting.
Roshaun Gould a web consulting firm called Gould Solutions. He began operations started and completed seven transactions in April that resulted in the following accounts, which all have normal balances.
Cash ………………………………………. $20,000
Office supplies ……………………………….. 750
Prepaid rent ………………………………… 1,800
Office equipment …………………………. 12,250
Accounts payable ………………………… 12,250
Common stock ……………………………. 15,000
Dividends ……………………………………. 5,200
Consulting fees earned ………………….. 20,400
Miscellaneous expenses ………………….. 7,650
Required
1. Prepare a trial balance for this business as of the end of April.
Identify the four financial statements of a business.
Nuncio Consulting completed the following transactions during June.
a. Armand Nuncio, the owner, invested \(35,000 cash along with office equipment valued at \)11,000 in the new company in exchange for common stock.
b. The company purchased land valued at \(7,500 and a building valued at \)40,000. The purchase is paid with \(15,000 cash and a long-term note payable for \)32,500.
c. The company purchased \(500 of office supplies on credit.
d. Nuncio invested his personal automobile in the company in exchange for more common stock. The automobile has a value of \)8,000 and is to be used exclusively in the business.
e. The company purchased \(1,200 of additional office equipment on credit.
f. The company paid \)1,000 cash salary to an assistant.
g. The company provided services to a client and collected \(3,200 cash.
h. The company paid \)540 cash for this month’s utilities.
i. The company paid \(500 cash to settle the payable created in transaction c.
j. The company purchased \)3,400 of new office equipment by paying \(3,400 cash.
k. The company completed \)4,200 of services for a client, who must pay within 30 days.
l. The company paid \(1,000 cash salary to an assistant.
m. The company received \)2,200 cash in partial payment on the receivable created in transaction k.
n. The company paid $1,100 cash in dividends.
Required
1. Prepare general journal entries to record these transactions (use account titles listed in part 2).
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