Santo Birch opens a Web consulting business called Show-Me-the-Money and completes the following transactions in its first month of operations.

March 1 Birch invests $150,000 cash along with office equipment valued at $22,000 in the company.

2 The company prepaid $6,000 cash for twelve months’ rent for office space. (Hint: Debit Prepaid Rent for $6,000.)

3 The company made credit purchases for $3,000 in office equipment and $1,200 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 $7,500 project for a client, who must pay within 30 days.

13 The company paid $4,200 cash to settle the account payable created on March 3.

19 The company paid $5,000 cash for the premium on a 12-month insurance policy.

22 The company received $3,500 cash as partial payment for the work completed on March 9.

25 The company completed work for another client for $3,820 on credit.

29 Birch withdrew $5,100 cash from the company for personal use.

30 The company purchased $600 of additional office supplies on credit.

31 The company paid $200 cash for this month’s utility bill.

Required

1. Prepare general journal entries to record these transactions (use account titles listed in part 2).

2. Open the following ledger accounts — their account numbers are in parentheses (use the balance column format): Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); S. Birch, Capital (301); S. Birch, Withdrawals (302); Services Revenue (403); and Utilities Expense (690). Post journal entries from part 1 to the ledger accounts and enter the balance after each posting.

3. Prepare a trial balance as of April 30.