Problem 2-1A (Algo) Preparing and posting journal entries; preparing a trial balance LO A1, P1

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

April1Tanner invested $120,000 cash along with office equipment valued at $28,800 in the company in exchange for common stock.2The company prepaid $7,200 cash for 12 months' rent for office space.Hint:Debit Prepaid Rent for $7,200.3The company made credit purchases for $14,400 in office equipment and $2,880 in office supplies. Payment is due within 10 days.6The company completed services for a client and immediately received $2,000 cash.9The company completed a $9,600 project for a client, who must pay within 30 days.13The company paid $17,280 cash to settle the account payable created on April 3.19The company paid $6,000 cash for the premium on a 12-monthprepaid insurance policy.Hint:Debit Prepaid Insurance for $6,000.22The company received $7,680 cash as partial payment for the work completed on April 9.25The company completed work for another client for $2,640 on credit.28The company paid a $6,200 cash dividend.29The company purchased $960 of additional office supplies on credit.30The 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 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.Prepar a trial balance as of April 30.