Concept explainers
1.
Introduction:
To prepare: The general journal entries for the following transaction.
2.
Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.
To prepare: T account for the following transactions.
3.
Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.
To prepare: Trail balance.
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Loose Leaf for Financial Accounting: Information for Decisions
- Karla Tanner opens a web consulting business called Linkworks and completes the following transactions in its first month of operations. Prepare journal entries for each transaction and identify the financial statement impact of each entry. The financial statements are automatically generated based on the journal entries recorded. April 1 Tanner invested $80,000 cash along with office equipment valued at $26,000 in the company in exchange for common stock. April 2 The company prepaid $9,000 cash for 12 months' rent for office space. The company's policy is to record prepaid expenses in balance sheet accounts. April 3 The company made credit purchases for $8,000 in office equipment and $3,600 in office supplies. Payment is due within 10 days. April 6 The company completed services for a client and immediately received $4,000 cash. April 9 The company completed a $6,000 project for a client, who must pay within 30 days. April 13 The company paid $11,600 cash to settle the account payable…arrow_forwardYi Min started an engineering firm called Min Engineering. He began operations and completed seven transactions in May, which included his initial investment of $24,000 cash. After those seven transactions, the ledger included the following accounts with normal balances. Cash Office supplies Prepaid insurance office equipment Accounts payable Common stock Dividends Services revenue. Rent expense The following seven transactions produced the account balances shown above. a. Y. Min invested $24,000 cash in the business in exchange for common stock. b. Paid $7,360 cash for monthly rent expense for May. c. Paid $4,800 cash in advance for the annual insurance premium beginning the next period. d. Purchased office supplies for $860 cash. e. Purchased $14,700 of office equipment on credit (with accounts payable). f. Received $37,000 cash for services provided in May. g. The company paid a $3,601 cash dividend. Beginning Balance $ 44,379 860 4,800 14,700 14,700 2. Prepare a Cash T-account for…arrow_forwardKarla Tanner opened a Web consulting business called Linkworks and completed the following transactions in its first month of operations. April 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…arrow_forward
- 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. 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…arrow_forwardKarla Tanner opened a Web consulting business called Linkworks and completed the following transactions in its first month of operations. April 1 Tanner invested $125,000 cash along with office equipment valued at $30,000 in the company in exchange for common stock. April 2 The company prepaid $7,200 cash for 12 months' rent for office space. Hint: Debit Prepaid Rent for $7,200. April 3 The company made credit purchases for $15,000 in office equipment and $3,000 in office supplies. Payment is due within 10 days. April 6 The company completed services for a client and immediately received S 2,000 cash. April 9 The company completed a $10,000 project for a client, who must pay within 30 days. April 13 The company paid $18,000 cash to settle the account payable created on April 3. April 19 The company paid $6,000 cash for the premium on a 12 - month prepaid insurance policy. Hint: Debit Prepaid Insurance for $6,000. April 22 The company received $8,000 cash as partial payment for the work…arrow_forwardKen Hughes opened a web consulting business called Security First and recorded the following transactions in its first month of operations. Apr. 1 Hughes invests $89,000 cash along with office equipment valued at $37,500 in the company. Apr. 2 The company prepaid $10,800 cash for twelve months’ rent for office space. The company's policy is record prepaid expenses in balance sheet accounts. Apr. 3 The company made credit purchases for $8,500 in office equipment and $4,100 in office supplies. Payment is due within 10 days. Apr. 6 The company completed services for a client and immediately received $6,100 cash. Apr. 9 The company completed a $17,500 project for a client, who must pay within 30 days. Apr. 13 The company paid $12,600 cash to settle the account payable created on April 3. Apr. 19 The company paid $3,120 cash for the premium on a 12-month insurance policy. The company's policy is record prepaid expenses in balance sheet accounts.…arrow_forward
- Pam Fisher opens a web consulting business called Fisher Consulting and completes the following transactions in March.Using the following transactions, record journal entries, create financial statements, and assess the impact of each transaction on the financial statements. Mar. 1 Fisher invested $237,000 cash along with $24,900 in office equipment in the company. Mar. 2 The company prepaid $8,000 cash for six months’ rent for an office. The company's policy is to record prepaid expenses in balance sheet accounts. Mar. 3 The company made credit purchases of office equipment for $5,900 and office supplies for $4,100. Payment is due within 10 days. Mar. 6 The company completed services for a client and immediately received $6,900 cash. Mar. 9 The company completed a $10,400 project for a client, who must pay within 30 days. Mar. 12 The company paid $10,000 cash to settle the account payable created on March 3. Mar. 19 The company paid $9,700…arrow_forwardPam Fisher opens a web consulting business called Fisher Consulting and completes the following transactions in March.Using the following transactions, record journal entries, create financial statements, and assess the impact of each transaction on the financial statements. Mar. 1 Fisher invested $237,000 cash along with $24,900 in office equipment in the company. Mar. 2 The company prepaid $8,000 cash for six months’ rent for an office. The company's policy is to record prepaid expenses in balance sheet accounts. Mar. 3 The company made credit purchases of office equipment for $5,900 and office supplies for $4,100. Payment is due within 10 days. Mar. 6 The company completed services for a client and immediately received $6,900 cash. Mar. 9 The company completed a $10,400 project for a client, who must pay within 30 days. Mar. 12 The company paid $10,000 cash to settle the account payable created on March 3. Mar. 19 The company paid $9,700…arrow_forwardPam Fisher opens a web consulting business called Fisher Consulting and completes the following transactions in March.Using the following transactions, record journal entries, create financial statements, and assess the impact of each transaction on the financial statements. Mar. 1 Fisher invested $237,000 cash along with $24,900 in office equipment in the company. Mar. 2 The company prepaid $8,000 cash for six months’ rent for an office. The company's policy is to record prepaid expenses in balance sheet accounts. Mar. 3 The company made credit purchases of office equipment for $5,900 and office supplies for $4,100. Payment is due within 10 days. Mar. 6 The company completed services for a client and immediately received $6,900 cash. Mar. 9 The company completed a $10,400 project for a client, who must pay within 30 days. Mar. 12 The company paid $10,000 cash to settle the account payable created on March 3. Mar. 19 The company paid $9,700…arrow_forward
- Pam Fisher opens a web consulting business called Fisher Consulting and completes the following transactions in March.Using the following transactions, record journal entries, create financial statements, and assess the impact of each transaction on the financial statements. Mar. 1 Fisher invested $237,000 cash along with $24,900 in office equipment in the company. Mar. 2 The company prepaid $8,000 cash for six months’ rent for an office. The company's policy is to record prepaid expenses in balance sheet accounts. Mar. 3 The company made credit purchases of office equipment for $5,900 and office supplies for $4,100. Payment is due within 10 days. Mar. 6 The company completed services for a client and immediately received $6,900 cash. Mar. 9 The company completed a $10,400 project for a client, who must pay within 30 days. Mar. 12 The company paid $10,000 cash to settle the account payable created on March 3. Mar. 19 The company paid $9,700…arrow_forwardOn September 1, Pat Hopkins established On a Cloud Corporation (OCC) as a provider of cloud computing services. Pat contributed $14,000 for 1,400 shares of OCC. On September 8, OCC borrowed $34,500 from a bank, promising to repay the bank in two years. On September 10, OCC wrote a check for $25,500 to acquire computer equipment. On September 15, OCC received $1,100 of supplies purchased on account and, on September 16, paid $2,450 for September rent. Through September 22, OCC billed its customers for $12,250 of services, of which OCC collected $6,450 in cash. On September 28, OCC paid $555 for Internet and phone service this month. On September 29, OCC paid wages of $4,300 for the month. Finally, on September 30, OCC submitted its electricity meter reading online and determined that the total charges for the month will be $790. This amount will be paid on October 14 through a preauthorized online payment. 1. Indicate the accounting equation effects of the September events using a table…arrow_forwardMike Sweet opens a web consulting business called Sweet Consulting and completes the following transactions in March.Using the following transactions, record journal entries, create financial statements, and assess the impact of each transaction on the financial statements. Mar. 1 Sweet invested $207,000 cash along with $23,900 in office equipment in the company. Mar. 2 The company prepaid $12,000 cash for six months’ rent for an office. The company's policy is to record prepaid expenses in balance sheet accounts. Mar. 3 The company made credit purchases of office equipment for $4,900 and office supplies for $3,100. Payment is due within 10 days. Mar. 6 The company completed services for a client and immediately received $5,900 cash. Mar. 9 The company completed a $9,400 project for a client, who must pay within 30 days. Mar. 12 The company paid $8,000 cash to settle the account payable created on March 3. Mar. 19 The company paid $7,700…arrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College