Reference no: EM132660137

Karla Tanner opens a Web consulting business called Linkworks and completed the following transactions in its first month of operations.

1. April 1 Tanner invested $145,000 cash along with office equipment valued at $34,800 in the company.
2.  2 The company prepaid $7,200 cash for 12 months' rent for office space. Hint: Debit Prepaid Rent for $7,200.
3. 3 The company made credit purchases for $17,400 in office equipment and $3,480 in office supplies. Payment is due within 10 days.
4. 6 The company completed services for a client and immediately received $2,000 cash.
5. 9 The company completed a $11,600 project for a client, who must pay within 30 days.
6.  13 The company paid $20,880 cash to settle the account payable created on April 3.
7. 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 $9,280 cash as partial payment for the work completed on April 9.
8. 25 The company completed work for another client for $2,640 on credit. 28 Tanner withdrew $6,200 cash from the company for personal use
9. 29 The company purchased $1,160 of additional office supplies on credit
10.  30 The company paid $700 cash for this month's utility bill.

Required:

Problem 1. Prepare a 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); K. Tanner, Capital (301); K. Tanner, Withdrawals (302); Services Revenue (403); and Utilities Expense (690).

Problem 2. Post the journal entries from part 1 to the ledger accounts.

Problem 3. Prepare a trial balance as of April 30.