Reference no: EM132464915

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:

Point 1: 1)Invested $81,000 in cash and office equipment that had a fair value of $54,000 in the business.

Point 2: 1)Prepaid $16,200 cash for three months' rent for an office.

Point 3: 2)Made credit purchases of office equipment for $27,000 and office supplies for $5,400.

Point 4: 6)Completed a report on hiring solutions for a client and collected $8,600 cash.

Point 5: 9)Completed a $16,600 project implementing a training program for a client, who will pay within 30 days.

Point 6: 10)Paid half of the account payable created on May 2.

Point 7: 19)Paid $8,100 cash for the annual premium on an insurance policy.

Point 8:22)Received $13,400 as partial payment for the work completed on May 9.

Point 9: 25)Developed a performance review process for another client for $5,880 on credit.

Point 10: 25)Paid wages for May totalling $37,000.

Point 11: 31)Withdrew $5,600 cash from the business to take a trip to Paris in June.

Point 12: 31)Purchased $1,900 of additional office supplies on credit.

Point 13: 31)Paid $1,460 for the month's utility bill.

Required:

Question 1. Prepare journal entries to record the transactions.

Question 2. 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).

Problem 1: Post the entries to the accounts.(Record the transactions in chronological order.)