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Santo Birch opens a Web consulting business called Show-Me-the-Money and completes the following transactions in its first month of operations. March 1 Birch invests $125,000

Santo Birch opens a Web consulting business called Show-Me-the-Money and completes the following transactions in its first month of operations.


March 1

Birch invests $125,000 cash along with office equipment valued at $30,000 in the company in exchange for common stock.

2

The company prepaid $7,200 cash for twelve months' rent for office space. (Hint: Debit Prepaid Rent for $7,200.)

3

The company made credit purchases for $15,000 in office equipment and $3,000 in office supplies. Payment is due within 10 days.

6 The company completed services for a client and immediately received $2,000 cash.
9 The company completed a $10,000 project for a client, who must pay within 30 days.
13 The company paid $18,000 cash to settle the account payable created on March 3.
19

The company paid $6,000 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $6,000.)

22

The company received $8,000 cash as partial payment for the work completed on March 9.

25 The company completed work for another client for $2,640 on credit.
29 The company paid $6,200 cash for dividends.
30 The company purchased $1,000 of additional office supplies on credit.
31 The company paid $700 cash for this month's utility bill.


Required:
1.

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).

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