Elizabeth Wong has strong problem-solving skills and loves to work with people. After becoming a Certified Human Resources Professional (CHRP) and working for several companies, she opened her own business, HR Solutions. She completed the following transactions during May 2023:

May 1 Invested $78,000 in cash and office equipment that had a fair value of $51,000 in the business.
1 Prepaid $15,300 cash for three months’ rent for an office.
2 Made credit purchases of office equipment for $25,500 and office supplies for $5,100.
6 Completed a report on hiring solutions for a client and collected $8,300 cash.
9 Completed a $16,300 project implementing a training program for a client, who will pay within 30 days.
10 Paid half of the account payable created on May 2.
19 Paid $7,800 cash for the annual premium on an insurance policy.
22 Received $13,100 as partial payment for the work completed on May 9.
25 Developed a performance review process for another client for $5,580 on credit.
25 Paid wages for May totalling $35,500.
31 Withdrew $5,300 cash from the business to take a trip to Paris in June.
31 Purchased $1,750 of additional office supplies on credit.
31 Paid $1,430 for the month’s utility bill.

Required
1. Prepare journal entries to record the transactions. Use page 1 for the journal.
2. Set up the following accounts (use the balance column format or T-accounts): Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128);
Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); Elizabeth Wong, Capital (301); Elizabeth Wong, Withdrawals (302); Services Revenue (403);
Wages Expense (623); and Utilities Expense (690).
3. Post the entries to the accounts and enter the balance after each posting.
4. Prepare a trial balance at May 31, 2023.

Analysis Component:
Utilities Expense, Services Revenue, and Elizabeth Wong, Withdrawals are equity accounts. Explain why.