Question 1

Silma Williams has a business called SW Consulting. Silma runs the business as a Sole proprietorship and provides financial consulting to her clients. MG Consulting had the following Opening Balances:

Account Description	Account #	Opening Balance
ASSETS
Cash	101	$6,000
Accounts Receivable	105	$2,400
Prepaid Insurance	110	$0
Equipment	120	$12,000

LIABILITIES
Accounts Payable	200	$2,000
Unearned Revenue	210	$1,800
Bank Loan	215	$6,000

OWNERS EQUITY
Owners Capital	300	$10,600
Owners Drawings	310

REVENUE
Service Revenue	400

Expenses
Rent Expense	540
Telephone Expense	550

SW Consulting had the following transactions for the month of January 2020:

Jan 2 Completed work for a client and the client paid $3,000 cash.

Jan 3 Paid $1,600 cash for Januarys rent.

Jan 4 Prepaid $2,400 cash for a one-year insurance policy.

Jan 5 Silma invested $10,000 cash into the business.

Jan 7 Paid $4,600 cash for equipment.

Jan 10 Completed work for a client who will pay $3,600 next month.

Jan 16 Paid $1,000 toward the principal of the bank loan.

Jan 19 Received $2,200 cash from a client for work to be completed next month.

Jan 20 Received a telephone bill for $500. This will be paid next month.

Jan 30 Silma withdrew $4,000 cash for personal use.

Required:

Analyze and record the transactions using journal entries, post journal entries to the general ledger, and prepare a trial balance.