11 Problem 2-4A Preparing general journal entries L03.5 Abe Factor opened a new accounting practice called X-Factor Accounting and completed these activities during March 2017: Mar. 1 invested $50.000 in cash and office equipment that had a fair value of $12,000. 1 Prepaid $4,000 cash for three months' ront for an office. 3 Made credit purchases of used office equipment for $6.000 and office supplies for $1.200. 5 Comploted work for a client and immediately reconod $6.200 cash. 9 Completed a $4.000 project for a client, who will pay within 30 days. Paid the account payable created on March 2 15 Paid $3,000 cash for the annual premium on an insurance policy 20 Received $1.500 as partial payment for the work completed on March 2 Placed an order with a supplier for $4,800 of supplies to be delivered April 7. They must be paid for within 15 days of being received 23 Completed work for another client for $2,850 on credit. 27 Abe Factor withdrew 53.600 cash from the business to pay some personal expenses. 30 Purchased $650 of additional office supplies on credit. 31 Paid $860 for the month's utility bill Page 133 Required Prepare oumal entries to record the transactions. 22 Problem 2-5A Posting, preparing a trial balance 104.5,6 CHECK FIGURE: 3. Total De = $75.700 Required Using the journal entries prepared in Problem 2-4A, complete the following: 1. 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); Abe Factor, Capital (301); Abe Factor, Withdrawals (302), Accounting Revenue (401); and Utilities Expense (690). 2. Post the entries to the accounts and enter the balance after each posting. 3. Prepare a trial balance as of the end of the month. Problem 2-6A Preparing financial statements from a trial balance 106 CHECK FIGURES: Profit = $12,190: Total assets = $71,240 Using the trial balance prepared for X-Factor Accounting in Part 3 of Problem 2-5A, prepare an income statement and statement of changes in equity for the month ended March 31, 2017, and a balance sheet at March 31, 2017