Megan Johnson is the founder and president of Johnson Consulting, a firm that provides human resource management advice to its clients. The business transactions that occurred during September 2022 while the company was being organized are listed below.

• September 1 Johnson and several others invested $2,400,000 cash in the business in exchange for 24,000 shares of Common stock.
• September 6 The company purchased office space for 600,000, of which $200,000 was applicable to the land, and $400,000 to the building. A cash payment of $250,000 was made and a long-term note payable was issued for the balance of the purchase price.
• September 10 Computer equipment was purchased from Sterling Computers for $18,000 cash.
• September 12 Office furnishings were purchased from Kent Furnishings at a cost of $8,000. A $1,500 cash payment was made at the time of purchase, and an agreement was made to pay another $1,500 on September 28 and the remaining balance on December 1. Kent Furnishings did not require that Johnson Consulting sign a promissory note.
• September 20 Office supplies were purchased from Office Depot for $1,800 cash.
• September 25 Johnson Consulting billed customers for consulting services provided in September for $63,000.
• September 26 The company mailed Kent Furnishings the first installment of $1,500 due on the account payable for office furnishings purchased on September 12.
• September 27 The company received and paid the following bills for the month of September: utilities $1,400 and telephone $630.
• September 28 The company paid $8,200 for employees salaries in September.
• September 29 Received $37,000 from customers in partial settlement of the account receivable created on September 25.
• September 30 Johnson signs a letter of intent to provide services for a local school district in the next year.

Instructions

Note: Please use the Excel file at this link (Links to an external site.) to submit your answers. Do not add or delete any rows or columns; this file is a template for your answers.

1. Prepare journal entries to record the above transactions. Select the appropriate account titles from the following chart of accounts:

• Accounts Payable
• Accounts Receivable
• Building
• Cash
• Common Stock
• Equipment
• Consulting Revenue
• Land
• Notes Payable
• Office Furnishings
• Office Supplies
• Salaries Expense
• Telephone Expense
• Utilities Expense

2. Post the journal entry for each transaction to the appropriate ledger accounts (t-accounts).

3. Prepare a trial balance dated September 30, 2022 for Johnson Consulting.