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Item 1

GL0204 (No Analysis Tab) - Based on Problem 2-1A LO A1, C3, C4, P1, P2

Mike Sweet opens a web consulting business called Sweet Homes and completes the following transactions in its first month of operations. Prepare journal entries for each transaction and identify the financial statement impact of each entry. The financial statements are automatically generated based on the journal entries recorded.

Apr.		1		Sweet invested $137,000 cash along with office equipment valued at $35,500 in the company.
Apr.		2		The company prepaid $20,400 cash for 12 months' rent for office space. The company's policy is record prepaid expenses in balance sheet accounts.
Apr.		3		The company made credit purchases for $9,900 in office equipment and $5,500 in office supplies. Payment is due within 10 days.
Apr.		6		The company completed services for a client and immediately received $9,700 cash.
Apr.		9		The company completed a $15,500 project for a client, who must pay within 30 days.
Apr.		13		The company paid $15,400 cash to settle the account payable created on April 3.
Apr.		19		The company paid $6,960 cash for the premium on a 12-month insurance policy. The company's policy is record prepaid expenses in balance sheet accounts.
Apr.		22		The company received $9,300 cash as partial payment for the work completed on April 9.
Apr.		25		The company completed work for another client for $5,800 on credit.
Apr.		28		Sweet withdrew $5,800 cash from the company for personal use.
Apr.		29		The company purchased $2,500 of additional office supplies on credit.
Apr.		30		The company paid $2,500 cash for this months utility bill.