Karla Tanner opened a Web consulting business called Linkworks and completed the following transactions in its first month of operations April 1 Tanner invested $100,000 cash along with office equipment valued at $24,000 in the company. April 2 The company prepaid $7,200 cash for 12 months' rent for office space. Hint: Debit Prepaid Rent for $7,200. April 3 The company made credit purchases for $12,000 in office equipment and $2,400 in office supplies. Payment is due within 10 days. April 6 The company completed services for a client and immediately received $2,000 cash. April 9 The company completed a $8,000 project for a client, who must pay within 30 days. April 13 The company paid $14,400 cash to settle the account payable created on April 3. April 19 The company paid $6,000 cash for the premium on 12 month prepaid insurance policy. Wint: Debit Prepaid Insurance for $6,000 April 22 The company received 56,400 cash as partial payment for the work completed on April 9. April 25 The company completed work for another client for $2,640 on credit. April 28 Tanner withdrew $6,200 cash from the company for personal use. April 29 The company purchased 5800 of additional office supplies on credit. April 30 The company paid $700 cash for this month's utility bill Required: 1. Prepare general Journal entries to record these transactions using the following titles: Cash (101) Accounts Recevable (106): Office Supplies (124), Prepaid Insurance (128): Prepaid Rent (131), Office Equipment (163). Accounts Payable (201) K. Tanner, Capital (301): K Tanner Withdrawals (302); Services Revenue (403), and Utilities Expense (690) 2. Post the journal entries from part 1 to the ledger accounts. 3. Prepare a trial balance as of April 30. Karla Tanner opened a Web consulting business called Linkworks and completed the following transactions in its first month of operations April 1 Tanner invested $100,000 cash along with office equipment valued at $24,000 in the company. April 2 The company prepaid $7,200 cash for 12 months' rent for office space. Hint: Debit Prepaid Rent for $7,200. April 3 The company made credit purchases for $12,000 in office equipment and $2,400 in office supplies. Payment is due within 10 days. April 6 The company completed services for a client and immediately received $2,000 cash. April 9 The company completed a $8,000 project for a client, who must pay within 30 days. April 13 The company paid $14,400 cash to settle the account payable created on April 3. April 19 The company paid $6,000 cash for the premium on 12 month prepaid insurance policy. Wint: Debit Prepaid Insurance for $6,000 April 22 The company received 56,400 cash as partial payment for the work completed on April 9. April 25 The company completed work for another client for $2,640 on credit. April 28 Tanner withdrew $6,200 cash from the company for personal use. April 29 The company purchased 5800 of additional office supplies on credit. April 30 The company paid $700 cash for this month's utility bill Required: 1. Prepare general Journal entries to record these transactions using the following titles: Cash (101) Accounts Recevable (106): Office Supplies (124), Prepaid Insurance (128): Prepaid Rent (131), Office Equipment (163). Accounts Payable (201) K. Tanner, Capital (301): K Tanner Withdrawals (302); Services Revenue (403), and Utilities Expense (690) 2. Post the journal entries from part 1 to the ledger accounts. 3. Prepare a trial balance as of April 30
