Karla Tanner opens a Web consulting business called Linkworks and completes the following transactions in its first month of operations April 1 Tanner invested $110,000 cash along with office equipment valued at $26,400 n the company in exchange for common stock 2 The company prepaid $7,200 cash for 12 months rent for office space ( Hint Debit Prepaid Rent for $7,200 ) 3 The company made credit purchases for $13,200 in office equipment and $2,640 in office supplies Payment is due within 10 days 6 The company completed services for a client and immediately received $2,000 cash 9 The company completed a $8,800 project for a client, who must pay within 30 days 13 The company paid $15,840 cash to settle the account payable created on April 3 19 The company paid $6,000 cash for the premium on a 12 month insurance policy ( Hint Debit Prepaid Insurance for $6,000 ) 22 The company received $7,040 cash as partial payment for the work completed on April 9 25 The company completed work for another client for $2,640 on credit 28 The company paid $6,200 cash in dividends 29 The company purchased $880 of additional office supplies on credit 30 The company paid $700 cash for this months utility bill Required 1 Prepare general journal entries to record these transactions using the following titles Cash (101) Accounts Receivable (106) Office Supplies (124) Prepaid Insurance (128) Prepaid Rent (131) Office Equipment (163) Accounts Payable (201) Common Stock (307) Dividends (319) 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 Required 1Required 2 Required 3 Post the journal entries from part 1 to the ledger accounts 101 Cash 106 Accounts Receivable Debit Debit Credit Date Credit Balance Date Balance 124 Office Supplies 128 Prepaid Insurance Debit Credit Debit Credit Date Balance Date Balance 131 Prepaid Rent 63 Office Equipment Date Debit Credit Balance Date Credit Balance Debit 201 Accounts Payable 307 Common Stock Credit Date Debit Date Debit Balance Credit Balance 319 Dividends 403 Services Revenue Credit Date Debit Balance Date Debit Credit Balance 690 Utilities Expense Date Debit Credit Balance Required 1 Required 3

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Posted on Sep 06, 2024

Karla Tanner opens a Web consulting business called Linkworks and completes the following transactions in its first month of operations. April 1 Tanner invested $110,000

Karla Tanner opens a Web consulting business called Linkworks and completes the following transactions in its first month of operations.

April	1	Tanner invested $110,000 cash along with office equipment valued at $26,400 n the company in exchange for common stock.
	2	The company prepaid $7,200 cash for 12 months rent for office space. (Hint: Debit Prepaid Rent for $7,200.)
	3	The company made credit purchases for $13,200 in office equipment and $2,640 in office supplies. Payment is due within 10 days.
	6	The company completed services for a client and immediately received $2,000 cash.
	9	The company completed a $8,800 project for a client, who must pay within 30 days.
	13	The company paid $15,840 cash to settle the account payable created on April 3.
	19	The company paid $6,000 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $6,000.)
	22	The company received $7,040 cash as partial payment for the work completed on April 9.
	25	The company completed work for another client for $2,640 on credit.
	28	The company paid $6,200 cash in dividends.
	29	The company purchased $880 of additional office supplies on credit.
	30	The company paid $700 cash for this months utility bill.

Required: 1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); Common Stock (307); Dividends (319); 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.

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Required 1Required 2 Required 3 Post the journal entries from part 1 to the ledger accounts. 101: Cash 106: Accounts Receivable Debit Debit Credit Date Credit Balance Date Balance 124: Office Supplies 128: Prepaid Insurance Debit Credit Debit Credit Date Balance Date Balance 131: Prepaid Rent 63: Office Equipment Date Debit Credit Balance Date Credit Balance Debit 201: Accounts Payable 307: Common Stock Credit Date Debit Date Debit Balance Credit Balance 319: Dividends 403: Services Revenue Credit Date Debit Balance Date Debit Credit Balance 690: Utilities Expense Date Debit Credit Balance Required 1 Required 3