Question

Instructions:

Using the following template, prepare journal entries for the above economic transactions. Enter your journals to the general ledger using the same file name. The following accounts should be used in recording your transactions: cash, accounts receivable, prepaid rent, office equipment, capital stock, prepaid insurance, office supplies, accounts payable, consulting revenue, dividends, and utility expense.

Arizona Consultants, Inc. opened in March and completed the following transactions:

March 1: Arizona Consultants Inc. issued 17,200 shares of $10 par value capital stock for $150,000 cash and equipment with fair market value of $22,000.

March 2: Arizona Consultants Inc. pre-paid $6,000 cash or six months’ rent for their office.

March 3: Arizona Consultants Inc. made credit purchases for office equipment for $3,000 and office supplies for $1,200. Payment is due within 10 days.

March 6:  Arizona Consultants Inc. completed services for a client and immediately received $4,000 cash.

March 9:  Arizona Consultants Inc. completed a $7,500 project for a client who must pay within 30 days.

March 12: Arizona Consultants Inc. paid $4,200 cash to settle the account payable created on March 3.

March 19: Arizona Consultants Inc. paid a $5,000 cash premium on a 12-month insurance policy.

March 22: Arizona Consultants Inc. received $3,500 cash as a partial payment for the work completed on March 9.

March 25: Arizona Consultants Inc. completed work for another client for $3,820 on credit.

March 29: Arizona Consultants Inc. declared dividends of $5,000 to its shareholders on record. Dividends were paid in cash the following day.

March 30: Arizona Consultants Inc. purchased $600 of additional office supplies on credit.

March 31: Arizona Consultants Inc. paid $500 cash for this month’s utility bill.

Instructions:

Using the following template, prepare journal entries for the above economic transactions. Enter your journals to the general ledger using the same file name. The following accounts should be used in recording your transactions: cash, accounts receivable, prepaid rent, office equipment, capital stock, prepaid insurance, office supplies, accounts payable, consulting revenue, dividends, and utility expense.

Date	Account Names		Memo	Debit	Credit
1-Mar
2-Mar
3-Mar
6-Mar
9-Mar
12-Mar
19-Mar
22-Mar
25-Mar
29-Mar
					$5,100
30-Mar
					$600
30-Apr
					$500

Answer 1

	Accounts Title	Dr	Cr
1-Mar	Cash	$150,000
	Office Equipment	22000
	Capital Stock		172000
	(being capital stock issued)
2-Mar	Prepaid rent	$6,000
	Cash		$6,000
3-Mar	Office equipment	$3,000
	Office supplies	1200
	Accounts payable		4200
6-Mar	CAsh	$6,000
	Consulting revenue		$6,000
	(being consulting revenue recorded
9-Mar	Accounts Receivable	$7,500
	Consulting revenue		$7,500
	(being consulting revenue recorded
12-Mar	Accounts payable	$4,200
	Cash		$4,200
22-Mar	Cash	$3,500
	Accounts Receivable		$3,500
	(received cash from customer)
25-Mar	Accounts Receivable	$3,820
	Consulting revenue		$3,820
	(being consulting revenue recorded
29-Mar	Dividends	$5,000
	CAsh		$5,000
30-Mar	Office Supplies	$600
	Accounts Payable		$600
31-Mar	utility expenses	$500
	Cash		$500