Problem 2-7A Preparing and posting journal entries; preparing a trial balance LO3, 4, 5, 6 Elizabeth Wong has strong problem-solving skills and loves to work with people. After becoming a Certified Human Resources Professional (CHRP) and working for several companies, she opened her own business, HR Solutions. She completed the following transactions during May 2020: May 1 Invested $85,000 in cash and office equipment that had a fair value of $58,000 in the business. 1 Prepaid $17,400 cash for three months' rent for an office. 2 Made credit purchases of office equipment for $29,000 and office supplies for $5,800. 6 Completed a report on hiring solutions for a client and collected $9,000 cash. 9 Completed a $17,000 project implementing a training program for a client, who will pay within 30 days. 10 Paid half of the account payable created on May 2. 19 Paid $8,500 cash for the annual premium on an insurance policy. 22 Received $13,800 as partial payment for the work completed on May 9. 25 Developed a performance review process for another client for $6,280 on credit. 25 Paid wages for May totalling $39,000. 31 Withdrew $6,000 cash from the business to take a trip to Paris in June. 31 Purchased $2,100 of additional office supplies on credit. 31 Paid $1,500 for the month's utility bill. Required: 1. Prepare journal entries to record the transactions. View transaction list Journal entry worksheet Record the investment of $85,000 in cash and office equipment that had a fair value of $58,000 in the business. Note: Enter debits before credits. Date General Journal Debit Credit May 01, 2020 Record entry Clear entry View general journal 2&3. Complete the following accounts (use the balance column format or T-accounts): Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); Elizabeth Wong, Capital (301); Elizabeth Wong, Withdrawals (302); Services Revenue (403); Wages Expense (623); and Utilities Expense (690). Post the entries to the accounts. (Record the transactions in chronological order.) 101: Cash Date PR Debit Credit Balance G1 G1 G1 G1 G1 G1 G1 G1 G1 106: Accounts Receivable PR Debit Credit Date Balance G1 G1 G1 G1 124: Office Supplies Debit Date PR Credit Balance G1 G1 G1 128: Prepaid Insurance PR Debit Credit Date Balance G1 G1 G1 131: Prepaid Rent Debit Date PR Credit Balance G1 G1 G1 163: Office Equipment PR Debit Credit Date Balance G1 G1 G1 201: Accounts Payable PR Debit Credit Date Balance G1 G1 G1 G1 301: Elizabeth Wong, Capital PR Debit Credit Date Balance G1 G1 G1 302: Elizabeth Wong, Withdrawals PR Debit Credit Date Balance G1 G1 G1 403: Services Revenue Date PR Debit Credit Balance G1 G1 G1 G1 623: Wages Expense Debit Credit Date PR Balance G1 G1 G1 690: Utilities Expense Debit Credit Date PR Balance G1 G1 G1 4. Prepare a trial balance at May 31, 2020. HR SOLUTIONS Trial Balance May 31, 2020 Account Titles Debit Credit Totals
