Problem 2-1A Preparing and posting journal entries; preparing a trial balance P1 A1 Karla Tanner opened a web consulting business catled Linkworks and completed the following transactions in its first month of operations. Apr. I Tanner invested $80,000 cash along with office equipment valued at $26,000 in the company in exchange for common stock. 2 The company prepaid $9,000 cash for 12 months' rent for office space. Hint: Debit Prepaid Rent for $9.000. 3 The company made credit purchases for $8,000 in office equipment and $3,600 in office supplies. Payment is due within 10 days. 6 The company completed services for a client and immediately received $4,000 cash. 9 The company completed a $6,000 project for a client, who must pay within 30 days. 13 The company paid $11,600 cash to settle the account payable created on April 3 . 19 The company paid $2,400 cash for the premium on a 12 -month prepaid insurance policy. Hint: Debit Prepaid Insurance for $2,400. 22. The company received $4,400 cash as partial payment for the work completed on April 9. 25 The company completed work for another client for $2.890 on credit. 28 The company paid a $5.500 cash dividend. 29 The company purchased $600 of additional office supplies on credit. 30 The company paid $435 cash for this month's utility bill. Required 1. Prepare general journal entries to record these transactions (use account titles listed in part 2). 2. Open the following ledger accounts-their account numbers are in parentheses (use the balance column format): 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). Post journal entries from part I to the ledger accounts and enter the balance after each posting. 3. Prepare a trial balance as of April 30 . Problem 2-1A Preparing and posting journal entries; preparing a trial balance P1 A1 Karla Tanner opened a web consulting business catled Linkworks and completed the following transactions in its first month of operations. Apr. I Tanner invested $80,000 cash along with office equipment valued at $26,000 in the company in exchange for common stock. 2 The company prepaid $9,000 cash for 12 months' rent for office space. Hint: Debit Prepaid Rent for $9.000. 3 The company made credit purchases for $8,000 in office equipment and $3,600 in office supplies. Payment is due within 10 days. 6 The company completed services for a client and immediately received $4,000 cash. 9 The company completed a $6,000 project for a client, who must pay within 30 days. 13 The company paid $11,600 cash to settle the account payable created on April 3 . 19 The company paid $2,400 cash for the premium on a 12 -month prepaid insurance policy. Hint: Debit Prepaid Insurance for $2,400. 22. The company received $4,400 cash as partial payment for the work completed on April 9. 25 The company completed work for another client for $2.890 on credit. 28 The company paid a $5.500 cash dividend. 29 The company purchased $600 of additional office supplies on credit. 30 The company paid $435 cash for this month's utility bill. Required 1. Prepare general journal entries to record these transactions (use account titles listed in part 2). 2. Open the following ledger accounts-their account numbers are in parentheses (use the balance column format): 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). Post journal entries from part I to the ledger accounts and enter the balance after each posting. 3. Prepare a trial balance as of April 30
