Problem 27A Preparing and posting journal entries; preparing a trial balance 103, 4, 5, @6 CHECK FIGURE: 4. Total Dr. = $176,230 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 $78,000 in cash and office equipment that had a fair value of $51.000 in the business. 1 Prepaid $15,300 cash for three months' rent for an office. 2 Made credit purchases of office equipment for $25,500 and office supplies for $5,100. 6 Completed a report on hiring solutions for a client and collected $8,300 cash. 9 Completed a $16,300 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 $7.800 cash for the annual premium on an insurance policy. 22 Received $13,100 as partial payment for the work completed on May 9. 25 Developed a performance review process for another client for $5.580 on credit. 25 Paid wages for May totalling $35.500. 31 Withdrew $5,300 cash from the business to take a trip to Paris in June. 31 Purchased $1,750 of additional office supplies on credit. 31 Paid $1.430 for the month's utility bill. Required 1. Prepare journal entries to record the transactions. Use page I for the journal. 2. Set up 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). 3. Post the entries to the accounts and enter the balance after each posting. 4. Prepare a trial balance at May 31, 2020. No 9 Problem 2-1A Analyzing transactions and recording journal entries Lo3, Q5 Tobias Eaden started a sole proprietorship named Sky High Ads. A customer's message can be displayed on an airplane banner across the city. Sky High Ads had the following business activities during the month of November 2020: Now Nov 13 1 Invested $200,000 cash and aircraft equipment with a $50,000 fair value in a new sole proprietorship named Sky High Ads. 3 Purchased land and a small office building. The land was worth $400,000, and the building was worth $100,000. The purchase price was paid with $125.000 cash and a long term Biote payable for the balance 7 Baden transferred title of his personal airplane to the business. The airplane had a value of $200,000 and was to be used exclusively in the business 9 Purchased 5.000 of supplies on credit. 13 Provided services to a customer for a marriage proposal and collected $16.000 on credit. 17 Paid $3.000 wages to a pilot. 21 Signed an advertising contract to commence in January. A deposit of $250 must be paid by December 15, 23 Paid for half of the account payable from the November 9 transaction, 27 Purchased $20,000 of new aircraft equipment by paying $15.000 cash and trading in old aircraft equipment with a recorded cost of $5,000 30 Withdrew $3,200 cash from the business for personal use. Required For each transaction. (1) complete the analysis. (2) determine the journal entry analysis, and (3) record the journal entry. Use the template below. Nov 17 Solution: Problem 2-1A (Continued) Nov 7 Analysis Assets increase. Equity increase. Journal entry Debit the Airplane account for $200,000. analysis Credit the Tobias Eaden, Capital account for $200,000. Journal Entry Date Account Titles and Explanation Debit Nov 2 Credit