Preparing and posting journal entries; preparing a trial balance Johnson Management Services opens for business and completes these transactions in September.
Sept. 1 John Johnson, the owner, invests \($38,000\) cash along with office equipment valued at \($15,000\) in the business.
2 Prepaid \($9,000\) cash for 12 months’ rent for office space.Debit Prepaid Rent (an asset)
for \($9,000.\)
4 Made credit purchases for \($8,000\) in office equipment and \($2,400\) in office supplies. Payment is due within 10 days.
8 Completed work for a client and immediately received \($3,280\) cash.

12 Completed a \($15,400\) project for a client, who must pay within 30 days.
13 Paid \($10,400\) cash to settle the payable created on September 4.
19 Paid \($1,900\) cash for the premium on an 18-month insurance policy. (Debit Prepaid Insurance (an asset) for \($1,900.\)
22 Received \($7,700\) cash as partial payment for the work completed on September 12.
24 Completed work for another client for \($2,100\) on credit.
28 John Johnson withdrew \($5,300\) cash for personal use.
29 Purchased \($550\) of additional office supplies on credit.
30 Paid \($860\) cash for this month’s utility bill.
Required 

1. Apply the debit-credit rules and explain how to record each transaction (use account titles listed in part 2).
2. Open the following T-accounts—Cash; Accounts Receivable; Office Supplies; Prepaid Insurance;
Prepaid Rent; Office Equipment; Accounts Payable; J. Johnson, Capital; J. Johnson, Withdrawals;
Service Fees Earned; and Utilities Expense. Record the transactions from part 1 in the T-accounts.
3. Prepare a trial balance as of the end of September.