Problem 2-1A Preparing and posting journal entries; preparing a trial balance LO C3, C4, A1, P1, P2 Karla Tanner opens a Web consulting business called Linkworks and completes the following transactions in its first month of operations April 1 Tanner invests $140,000 cash along with office equipment valued at $33,600 in the company in exchange for common stock. 2 The company prepaid $7,200 cash for twelve months' rent for office space. (Hint: Debit Prepaid Rent for $7,200.) 3 The company made credit purchases for $16,800 in office equipment and $3,360 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 $11,200 project for a client, who must pay within 30 days 13 The company paid $20,160 cash to sttle the account payable created on April3 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 $8,960 cash as partial payment for the work completed on April9 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 $1,120 of additional office supplies on credit. 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 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) View transaction list Journal entry worksheet ..12 Tanner invests $140,000 cash along with office equipment valued at $33,600 in the company in exchange for common stock. Note: Enter debits before credits. Date General Journal Debit Credit April 01 Record entry Clear entry View general journal 2. Open the following ledger accounts for the account titles referred in part 1 and post the joumal entries from part 1 to the ledger accounts. (Do not skip lines, Enter transactions in chronological order.) 101: Cash 106: Accounts Receivable Date Debit Credit Balance Date Debit Credit Balance 124: Office Supplies Debit 128: Prepaid Insurance Date Credit Balance Date Debit Credit Balance 163: Office Equipment 131: Prepaid Rent Debit Date Debit Credit Balance Date Credit Balance 201: Accounts Payable Debit 307: Common Stock Date Credit Balance Date Debit Credit Balance 319: Dividends 403: Services Revenue Date Debit Credit Balance Date Debit Credit Balance 690: Utilities Expense Debit Date Credit Balance 3. Prepare a trial balance as of April 30. LINKWORKS Trial Balance April 30 Debit Credit Total 0 $ 0
