Answer:
1. Prepare general journal entries to record these transactions using the following titles:
March 1
Dr Cash (101) 175,000
Dr Office Equipment (163) 26,000
Cr Common Stock (307) 201,000
March 2
Dr Prepaid Rent (131) 6,000
Cr Cash (101) 6,000
March 3
Dr Office Equipment (163) 3,800
Dr Office Supplies (124) 2,200
Cr Accounts Payable (201) 6,000
March 6
Dr Cash (101) 4,500
Cr Services Revenue (403) 4,500
March 9
Dr Accounts Receivable (106) 10,900
Cr Services Revenue (403) 10,900
March 12
Dr Accounts Payable (201) 6,000
Cr Cash (101) 6,000
March 19
Dr Prepaid Insurance (128) 6,400
Cr Cash (101) 6,400
March 22
Dr Cash (101) 4,000
Cr Accounts Receivable (106) 4,000
March 25
Dr Accounts Receivable (106) 5,330
Cr Services Revenue (403) 5,330
March 29
Dr Dividends (319) 5,400
Cr Cash (101) 5,400
March 30
Dr Office Supplies (124) 1,700
Cr Accounts Payable (201) 1,700
March 31
Dr Utilities Expense (690) 1,400
Cr Cash (101) 1,400
2. Post the journal entries from part 1 to the ledger accounts.
Account Description Debit Credit
101 Cash 175,000
6,000
4,500
6,000
6,400
4,000
5,400
<u> 1,400 </u>
101 Cash 158,300
106 Accounts Receivable 10,900
4,000
<u> 5,330 </u>
106 Accounts Receivable 12,330
124 Office Supplies 2,200
<u> 1,700 </u>
124 Office Supplies 3,900
128 Prepaid Insurance 6,400
131 Prepaid Rent 6,000
163 Office Equipment 26,000
<u> 3,800 </u>
163 Office Equipment 29,800
201 Accounts Payable 6,000
6,000
<u> 1,700 </u>
201 Accounts Payable 1,700
307 Common Stock 201,000
319 Dividends 5,400
403 Services Revenue 4,500
10,900
<u> 5,330 </u>
403 Services Revenue 20,730
690 Utilities Expense 1,400
3. Prepare a trial balance as of April 30.
Account Description Debit Credit
101 Cash 158,300
106 Accounts Receivable 10,900
106 Accounts Receivable 12,330
124 Office Supplies 3,900
128 Prepaid Insurance 6,400
131 Prepaid Rent 6,000
163 Office Equipment 29,800
201 Accounts Payable 1,700
307 Common Stock 201,000
319 Dividends 5,400
Retained earnings 11,000
403 Services Revenue 20,730
690 Utilities Expense 1,400
<u> </u>
TOTAL 234,430 234,430
