Denzel Brooks Notes

  • Denzel Brooks opens a web consulting business called Venture Consultants and completes the following transactions in March:

    n\n ","right":"\n\nPart 1:\n\nDenzel Brooks opens a web consulting business called Venture Consultants and completes the following transactions in March:\n\nMarch 1: Brooks invested $150,000 cash along with $22,000 of office equipment in the company.\n\nMarch 2: Venture Consultants pre-paid $6,000 cash or six months’ rent for their office.\n\nMarch 3: Venture Consultants made credit purchases for office equipment for $3,000 and office supplies for $1,200. Payment is due within 10 days.\n\nMarch 6: Venture Consultants completed services for a client and immediately received $4,000 cash.\n\nMarch 9: Venture Consultants completed a $7,500 project for a client who must pay within 30 days.\n\nMarch 12: Venture Consultants paid $4,200 cash to settle the account payable created on March 3.\n\nMarch 19: Venture Consultants paid a $5,000 cash premium on a 12-month insurance policy.\n\nMarch 22: Venture Consultants received $3,500 cash as a partial payment for the work completed on March 9.\n\nMarch 25: Venture Consultants completed work for another client for $3,820 on credit.\n\nMarch 29: Brooks withdrew $5,100 cash from the company for personal use.\n\nMarch 30: Venture Consultants purchased $600 of additional office supplies on credit.\n\nMarch 31: Venture Consultants paid $500 cash for this month’s utility bill.\n\nInstructions:\n\nPrepare journals for the above economic transactions. Use the file called \"Assignment Template\" in the assignment section for Part \\#1, Venture Capital Consultants. Enter your journals to the general ledger using the same file name. \n\nPart 2:\n\nThe following unadjusted trial balance is for Power and Demolition Company as of year-end for the April 30, 2015 fiscal year. The April 30, 2014 credit balance of the owner's equity account is $46,900, and the owner invested $40,000 cash in the company during 2015.\n\nNO.\n\nAccount Title\n\nDebit\n\nCredit\n\n101\n\nCash\n\n$7,000\n\n126\n\nSupplies\n\n$16,000\n\n128\n\nPre-paid insurance\n\n$12,600\n\n167\n\nEquipment\n\n$200,000\n\n168 \n\nAccumulated depreciation – equipment\n\n$14,000\n\n201\n\nAccounts payable\n\n$6,800\n\n251\n\nLong-term notes payable\n\n$30,000\n\n301\n\nBonn, equity\n\n$86,900\n\n302\n\nBonn, withdrawals\n\n$12,000\n\n401\n\nDemolition fees earned\n\n$187,000\n\n623\n\nWage expense\n\n$41,400\n\n633\n\nInterest expense\n\n$3,300\n\n640\n\nRent expense\n\n$13,200\n\n683\n\nProperty tax expense\n\n$9,700\n\n684\n\nRepairs expense\n\n$4,700\n\n690\n\nUtilities expense\n\n$4,800\n\nTOTALS\n\n$324,700\n\n$324,700\n\n "},{"left":"","right":""},{"left":"","right":""},{"left":"","right":""}]

Sign Up Free