Denzel Brooks opened a Web consulting business called Venture Consultants and completed the following transactions in
March.
March 1 Brooks invested $185,000 cash along with $28,000 in office equipment in the company.
March 2 The company prepaid $7,000 cash for six months' rent for an office. Hint: Debit Prepaid Rent for
$7,000.
March 3 The company made credit purchases of office equipment for $4,300 and office supplies for $1,500.
Payment is due within 10 days.
March 6 The company completed services for a client and immediately received $4,000 cash.
March 9 The company completed a $10,500 project on credit for a client, who must pay within 30 days.
March 12 The company paid $5,800 cash to settle the account payable created on March 3.
March 19 The company paid $5,700 cash for the premium on a 12-month insurance policy. Hint: Debit Prepaid
Insurance for $5,700.
March 22 The company received $3,100 cash as partial payment for the work completed on March 9.
March 25 The company completed work for another client for $4,210 on credit.
March 29 Brooks withdrew $5,500 cash from the company for personal use.
March 30 The company purchased $1,100 of additional office supplies on credit.
March 31 The company paid $500 cash for this month's utility bill.
Required:
1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable
(106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131): Office Equipment (163); Accounts Payable (201); C
Brooks, Capital (301); D. Brooks, Withdrawals (302); Services Revenue (403); and Utilities Expense (690).
2. Post the journal entries from part 1 to the ledger accounts.
3. Prepare a trial balance as of the end of March.