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 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 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 $5,500 cash in dividends.
		29		The company purchased $600 of additional office supplies on credit.
		30		The company paid $435 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.