Answer:
a. Journal Entries
March 1
Cash $150,000 (debit)
Office Equipment $22,000 (credit)
Capital $ 172,000
March 2
Prepaid Rent $6,000 (debit)
Cash $6,000 (credit)
March 3
Office equipment $3,000 (debit)
Office supplies $1,200 (debit)
Accounts Payable $4,200 (credit)
March 6
Cash $4,000 (debit)
Service Revenue $4,000 (credit)
March 9
Accounts Receivable $7,500 (debit)
Service Revenue $7,500 (credit)
March 12
Accounts Payable $4,200 (debit)
Cash $4,200 (credit)
March 19
Prepaid Insurance $5,000 (debit)
Cash $5,000 (credit)
March 22
Cash $3,500 (debit)
Accounts Receivable $3,500 (credit)
March 25
Accounts Receivable $3,280 (debit)
Service Revenue $3,280 (credit)
March 29
Drawings $5,100 (debit)
Cash $5,100 (credit)
March 30
Office Supplies $600 (debit)
Accounts Payable $600 (credit)
March 31
Utilities Expenses $500 (debit)
Cash $500 (credit)
b.Ledger Account Balances
Cash ($150,000 - $500 - $5,100 + $3,500 - $5,000 - $4,200 + $4,000 - $6,000) = $136,700
Office Equipment ($22,000 + $3,000) = $25,000
Capital = $ 172,000
Prepaid Rent = $6,000
Office supplies ($1,200 + $600) = $1,800
Accounts Payable ($4,200 + $600 - $4,200) = $600
Service Revenue ($4,000 + $3,280 + $7,500) = $14,780
Accounts Receivable ($7,500 - $3,500 + $3,280) = $7,280
Prepaid Insurance = $5,000
Utilities Expenses = $500
c. Trial Balance
Debit Credit
Cash $136,700
Office Equipment $25,000
Capital $ 172,000
Prepaid Rent $6,000
Office supplies $1,800
Accounts Payable $600
Service Revenue $14,780
Accounts Receivable $7,280
Prepaid Insurance $5,000
Utilities Expenses $500
Totals $187,380 $187,380
Explanation:
The above show the journals recorded, posting to ledger accounts and determination of account balances and trial balance as at April 30.
